They say if free hold, you can get ahold of that house and land forever. But with only ~1500sqft of land, is it really relevant?

if buy freehold high rise, it is even worse. In 99 years time you won't even know if that house is still livable or not.

Plus, if the leasehold area is highly developed residential area, will government simply take back the land and developed highway for example?

What are the disadvantages buying leasehold property actually for permanent stay, not flipper.

Why some of my friends/relatives is so against me buying leasehold?

Would you go for freehold instead and save around 100-200k?

99 years every body already dead. who cares

freehold just a gimmick especially for condo and apartments

1. even freehold lands the government can take back la

2. leasehold isnt so much about the government taking them back or anything, but about Bumi land ownership

Thank you wont say anymore

Well, typical building, lifespan is about 50 years.

Beyond that u need to invest on new MEPs. And typical Malaysian lifespan is about 70s. Consider one buyer house at age of 30, only 40 years to fully use the house, then go to your heir d... imho. Lease type is irrelevant

just go for freehold, its lesser headache in the long run when you/your descendants want to renew the lease... it holds value better than leasehold...

You'll be long dead anyway, unless you want to pass it down to next generation

Of course real reason people want buy freehold is to pass down to next generation.

But question is, if it is terrace house, intermediate lot, housing area - if that next generation want to tear down everything and build 4 storey house, can they do that?

Leasehold might last for at least for 2 generation. Let you descendent care about the generation after that.

If for own stay then Not much of a difference. You wont even be around when its time to renew the lease

Lease hold also u can pass it down to next generation.

There is so many things that can happen la

No point trying to plan 50-80 years in advance

Really? I thought it is a matter of how government jom certain very high potential land for re-development later.

MEPs?

Affect selling value after 40 yrs.

Bank value lower becuz lease remaining low

Nope. if gomen wants your land or your land got problem causing structural defect..... okthxbye

i thought it is more about, if you wanna sell it after 40 years. That time if freehold land maybe can get quadraple the price and can give the money to 4 of your kids.

Compared if u buy leasehold, after 40 years you wanna sell also hard.

Good point

U think pipu buy house stay 1 generation ka

Lease or free hold govt can take back when there is need but as far as I know the value is evaluated differently.

My pros are all freehold, but my life is leasehold from Flying Spaghetti Monster.

That is fallacy

Leasehold means it will also make it easier for gov to take over your land compared with freehold

Hence the lease. Some lands may not worth now much, buy may worth a lot later especially if the government foresee it as a economic center later. So it will be pretty expensive for government to re-acquire those lands for special purpose re-development... if they are sold as freehold now. Quad seems a bit low over 40 years... some areas i know went up at least 30x

This post has been edited by duHwaN: Jan 23 2020, 01:30 PM

Whether freehold or leasehold government can still take your land, it is called "Eminent Domain" (very worrying, like the other ED - "Erectile Dysfunction").

That's the reason why not everybody in the Klang Valley was against Kidex, their house was gonna get bought over at a good price ... then more houses were required and the project cost more than planned, which is what I believe actually stopped the project.

The people with the guns can always change the rules.

the government still have to compensate fair price relative to market price.... for "forced" acquisition

This post has been edited by duHwaN: Jan 23 2020, 01:31 PM

Yes but leasehold will be made easier and cheaper for the gov compared with freehold

House =/= Land.

House you die die 100 years old; also no use; become temple.

it is the land that value...

You have house on sea; 100 years also no one want to fight you except land reclaim.

MAX houses built in malaysia current Y2020 lifespan = 20 years.

the built quality so much songlap; even you freehold you also worry.

Leasehold or freehold, if gov wanna take they take. Just that freehold u will get more advantage. Leasehold u can renew the lease also but depend on how good the area develop. If performance not good or the housing area not well maintained, gov take back.

I not sure what difference also. But I assume lesser lease left is much harder to sell off because legally don have many years left to use the property.
I won't want to buy a house left only twenty years if I got about forty years to live on unless is very cheap.

first house i just buy leasehold one, cos murah then got money abit go buy freehold house and rent out old house. okay ke plan ini mcm? rumah dekat seksyen 18 shah alam

freehold is meaning less in stata title.

if freehold, must go Individual title.

leasthold is less likely kena tear down by gov if highrise building.

Freehold gomen can take back also if they want. You don't own anything 😂

This

leasehold , bank refuse to loan to the next buyer if the leasehold year too short

after 30 years, your house next buyer cannot buy your house with houseloan. cash can.

Yes freehold doesn't mean the gomen can't take back. If they need to build LRT they have the right to take back provided they give compensation. For leasehold some say can convert, some say can ask for extension. But then again the extension and conversion aren't guaranteed. What is guaranteed is after 99 years, the government has the final say, not you. And without the need to compensate you if they take it back.

My 2 cents.

Freehold - u own it
Leasehold - u rent it

Leasehold? When 50 years you hardly sell. Better you rent forever since it's cheaper. If flipper yes they buy leasehold coz cheaper but if you wanna stay till die no good.

When u age 70. U sell and living old folks hse liao.

Unless cheaper than rental.

yang penting bumi quota

under any gov they cant take lands from you

20 years a joke la. At least 50 years for double storey. For single storey even can last 80 years. For apartment/condo 40 years already good

You dont believe? check how many "project built this days" with assurance that less than a year got hair less crack after VP. and project the 20 years you have it.


thus i concluded that the lifespan is short as cost rises.

I thought everything we own is on lease.
-Hand phone
-Car
-House
-Clothes

Ownership is a lie.

If renting, yes now might be cheaper but owner definitely will revise the price each year? So how to justify total cos would be cheaper?

Mechanical, Electrical and Plumbing

if subsale, gonna be a prob. when lease expiring aint nobody gonna buy it.

Even your body & family. Basically your life.

resale value. nobody gonna buy a leasehold house with just 30 years left.

Freehold

My grandson gonna be proud of me.


Plot twist i’m still single

Leasehold or freehold is all about bank financing. Nothing else. Obviously, with freehold, the bank will offer higher financial subject to docs.

With leasehold, banks usually offer lower financing and people tend to offer lower too.

Example is Kota Damansara. The whole place is leasehold and as a result, even a Semi-D cannot fetch more than RM 2M. Bungalows less than RM 3M. On property sites, they usually ask for higher price but during actual sale, it will be much lower.

Yea;that; most also have lifespan 15 years max. or 10.

freehold or leasehold both are the same in terms of gomen retake back the land for redevelopment, both also gomen hav the right to take bck the land, but for freehold the compensation is higher of gomen wan take bck the land for redevelopment after lets say 20 years n after 99 years the gomen cn take it bck without paying u a single cent, whereas for freehold the gomen need to pay u bck the market value of the land

leasehold is not secure as in after 99 years if gomen wan take the land bck n dun wan extend the lease u also cannot do anything, u will just hav to move out

When you have 500k. Put it at FD. The interest can cover the rental increase. Now supply> demand so always got cheap rental

But 20 years is such short time. I even felt I owned house yesterday but It has already been 5 years.

This post has been edited by L.Torreira: Jan 23 2020, 05:54 PM

I see you have taken the red pill.

Totally different thing la. Freehold the way to get back is via LAA , whereas lease when they wanna take back after lease ends they dont need to.
My dad used to do a lot of these when buidling the highways last time.

but even for freehold gomen still cn forcefully take it bck right? just that they hav to pay higher compensation, before 99 years both freehold n leasehold can also be taken bck by gomen n pay compensation, so no diff la

after 99 years leasehold become gomen land for free whereas freehold gomen still need to pay high compensation to get it bck

Time own the house = /= value

Time own the house = Loss in servicing the asset (liability)

When you own a house and live in it and still paying mortgage + bills + tax; it is liability.

It is an ASSET when it is generating $$$$ for you. - all liability on the asset.


yes it is short; doesnt matter how long you have it; the most important how much you get when you sell it.

Learn from Japan property market. They have very short lifespan on the value

freehold landed, leasehold high rise

It's under LAA as I said. Whereas for leasehold they dont need to

Syukur my flat has 990 leasehold years

Depends on the majlis and architects because if it’s terrace house, your neighbours sure to reject the proposal

Leasehold will get monetary compensation or not if gov wanna build highway

I also want to know this

leasehold cheaper, freehold more expensive

if gov wants your land to build highway, freehold or leasehold doesn't matter. compensation will be different though

leasehold needs to renew the lease when the time comes. banks won't give loan or high margin loan if the lease of the house less than certain number of years. also, if not mistaken some leasehold properties need state consent before can sell, and that takes quite a bit of time