With the invention of “Freehold Property” schemes, a lot of investors automatically turn down Leasehold Properties in favor of the former. Why? It appears that a lot of investors believe that Leasehold Property will inherently depreciate in value, and thus they would prefer to go with Freehold. But is this truly the case?
One of the advantages of a Leasehold Property is that they are more desirable to foreigners. After all, why would most foreigners buy a Freehold Property to keep forever unless he was very sure he was never going to ever leave the country again and stay in Singapore forever? Therefore, if you wish to cater to foreigners, a Leasehold Property tends to be the better bet.
And of course, there’s the matter of competition. Consider what we have just said – that many people prefer buying Freehold compared to Leasehold. What it means is that you will have to compete with many other people for a Freehold property, and this means that if you are not fast and quick-witted, you may have to settle for a “dud” property rather than the one you really want.
Since there are less people fighting over Leasehold property, it is quite possible that you are able to pick a “prime” location for a Leasehold property and utilize it to its fullest extent instead, all for a much cheaper price than a premium Freehold Property!
As you can see, things are not clearcut and Leasehold Property still has its advantages. Therefore you should do your research and make the correct choice according to your needs, rather than believing in a simplistic formula.
We hope this has been helpful insight into your future plans of property investment. If you’re looking to take advantage of this opportunity, at Condo New Launches we have a wide variety of information on new properties for you to pursue.
