https://www.msn.com/en-my/news/national/cos...8ad103a5c&ei=18

Real life situation facing PJ old town property owners. Since it is commercial, State Govt unlikely to drop premium unlike residential.

crazy way of calculation
maybe majority type c location
very difficult for them to fork out so huge amount in 6 months
and many are old/retired.

huh renew lease is so expensive one meh?

Actually this is the standard government's way of calculation based on value of the property and tenure. If renew for 99 years for sure very expensive, like buying another property. That is why leasehold property lose value closer to the expiry date and banks won't give loan for property less than a certain number of years left.

Just be warned as there are many who say leasehold/freehold doesn't matter. It does. Just that your children or grandchildren will inherit the problem.

A next generation problem.

That's why so many don't want to buy old leasehold properties.

brapa? how many percent of the property value?

When federal gov introduce inheritance tax like UK, 40%, then children will gg.com also

Article says almost 1 mil to renew leasehold for property worth 1.5 mil currently

Leasehold cheaper, then ROI for rental better too.

Sri petaling also leasehold for the commercial land, owners making tonnes of money from rental

eventhough it is not cheap, but still make sense, after u renew u sell it is profitable what

renew with 1mil then sell at 1.5mil?
means the property only valued at 500k?

is this profit? something wrong with math?

why is 1.5m-1m=500k is not profit
the property value is 1.5m, no?

i assume the son inherite the property from parents, isn't this is most of the cases?

so means the value of 500k is profit?
wow!!!!! math fail or not ownself know la.

i know this is serious forum, and i dont mean to quarrel with u here, but at least u tell me what calculation error i made. I dont see your point

Cash flow Vs Profit...

500k is cash flows but doesnt mean is profit 500k

though if its for the inheritor, both is the same since he get it free from their parent.

Many of them already extracted or are still extracting profit from rental, for example this guy here

"Tee King Koon, 76, has been renting his property on Jalan Othman to a bank. His lease is due to expire in three years."

Assuming he inherited this from his parents, and had been collecting rent for donkey years, he should pay up if he wants to continue collecting rent. Expecting everything handed to him for free meh

freehold and leasehold aside, I believe the location is more important.

being at the centre of PJ but leasehold is still better anytime than freehold at a secluded area.

let the government worry about renewing the lease. if they don't handle it properly it will cost them dearly in the election as well

Regardless of the government decision, changing of government or not, buyer still has to pay to renew the lease term. So before we buy the property, we must know the risks that we are entering into (i.e., factor the costs to renew the lease term). If you don't want to renew the lease, then is up to you. Better worry now, then worry later.

This post has been edited by Chady: Aug 2 2024, 02:34 PM

yes, what I'm trying to say is over the lease period, they have already reaped all the profit of being cheaper and in a better location than comparable freehold property.

the government at helm will not risk infuriating their voter base over unreasonable terms. for residential, they have profit sharing scheme where the lease renewal is cheaper.

of course ma

u renew 1mil for another 99 years

for those 99 years u collect rent also until hand soft liao