Actually I won't want my kids to be spoilt. But even if my kids are capable of handling their finances well, why should I get a land only to lose it 99 years later? If I leave it to my financially literate kids, maybe they can put the land to better use. That's better than losing the land so that some 2 ringgit shell company can buy it for cheap.

Well. It also depends on that particular area.

If the area you want to live in is 100% leasehold, then you have no choice. Likewise, in future, people who love living in this area also has no choice but to buy leasehold property also.

But if that area has both freehold and leasehold, then perhaps it is wise to select freehold if price range is not too much.

bungalow plot but leasehold left 77 yrs... how ah? rm3mil+ land saja, have to bina own haus

Perhaps what is interesting is there is no leasehold high rise in Malaysia which is 80-90 years old yet.

Wondering what will happen to leasehold high rise when it is 80-90 years old.

no matter LH or FH , after 80 years, I don't think the high rise building still safe to stay, especially now all the high rise building built by foreign workers, some even less than 5 years already many problem, some just VP already come with waterfall

If you really want to pass the property to your kids, I dont think the freehold condo is a good idea, after 60 years i think your kids also don't want to stay in that condo, high chance to become a dangerous building

For high rise, it is the land underneath matters most.

For leasehold landed, individual owner can apply to renew the lease.

Whereas for high rise, I guess you need to get agreement from all unit owners before you can renew the lease. If one owner does not agree, then cannot proceed. Anyone can clarify this?

In that case, a 60 years old high rise condo can only wait for developers to acquire the whole condo, demolish it and rebuild another new high rise?

if your condo located at a strategic location, it is possible, if not very hard to get developer to acquire.

If the old high rise really dangerous and might affecting surrounding building, government might just demolish it for safety purpose with minimum compensation

99 years can give to three generation, assuming every generation getting their 1st kid around 30 years old

After the lease period over, the owner needs to renew it.
The rate is base on the location of the land.

If you go to PJ old town, you see a lot of vacant bungalows and houses. The reason is most of those houses owner have moved out but the house is not desirable in the market as it is at the very end of the lease. It will depreciate a lot for the buyer.

The renewal rate is between RM60k-250k.

That means if you buy the bungalow at RM1.8mil, you need to add say RM150k cash for renewing the lease within 10 years.

The actual house own value will be RM1.8mil + RM150k* + (time u own the house x 5% of RM150k)**.

*if you borrow the RM150k, then you also need to add interest from the loan.
**Rough way to calculate the loss of gain from interest.

Also, the paper value of the house is RM1.8mil, the bank will only borrow you 1.8Mil at max (which is not likely at all...).

No one who understands this will want to pay ~RM2mil to stay in an RM1.8mil house since there is a lot of property supply in msia...

This post has been edited by chamelion: Mar 25 2021, 11:39 PM

Normally is a strata title. The title is held by a legally appointed representative body. If the owner does not pay, he can be sue and need to pay all interest because he already agrees with the term during purchase.

Does that mean if you do get the approval to renew your lease, you have to pay at least 2 mil for it?

You pay RM2mil from your pocket.
RM1.8 for house and ~RM200k (If you calculate in detail, it might higher) for leasing fee.
Generally, gov allow lease renewal with no issue.

It is also an issue if you want to sell. You have to wait the appreciation of RM200k + the normal loan interest and fee to avoid lost.

This post has been edited by chamelion: Mar 26 2021, 07:50 AM

Thanks interesting to know that after 'owning' the house for 99 years you have to repurchase it when renewing the lease. I thought it is just extending the lease without paying for the house value again.

haha, i dont dare stay in 80 years old high rise building

if before renew price at 1.8m, after you renew it.........market price simply 2m above

I working nearby old town, initial offer by local authorities is 100k renewal, it shock to the resident. end up negotiate till very low price

what was the ending? Renewed lease successfully?

yes, already renewed few years ago

i saw a vacant bungalow lot (not really big) selling at 1m now