It’s not less than a milestone to buy a property in Singapore. It represents the comfort and level of financial stability that you are enjoying now. According to records, despite only 15.9% of Singaporeans live in Condos, you can observe showrooms popping up at every nook. While you are searching for the right apartment, you are going to encounter terms like leasehold and freehold property.
Now, you will be knowing the difference between a leasehold and a freehold property and why freehold ones are a better choice.
What is the difference between freehold and leasehold?
If the property claims to be a freehold development, then you are allowed to own it for an indefinite period.
However, with leasehold properties, you can only own them for a limited number of years. When the lease ends, you have to return the possession of and to the state.
In Singapore, leasehold properties are commonly categorized into 2 types. One is 99 and the other is 999 years. Properties with 999-year-old leasehold are opined to be the freehold ones looking at their eternal tenure. With the limited resources left and growing population, most condo leases are of 99 years. You will observe that the tenure of 999 leaseholds will be the rarest.
Why freehold is better than leasehold?
Fewer restrictions, more freedom
Freehold developments enjoy more freedom and flexibility as compared to leasehold ones. You get a greater latitude to bring the changes to the external or internal structure of your unit. If you are a gardening type person, feel completely free to remodel your house to lawns and gardens.
It will be easy enough to transfer the property to your loved ones if it is a freehold type of property.
Higher return on investment
The initial 10 -20 years of a condo are its golden years. It is the period when the value of the property appreciates so rapidly. After this, with a dropping lease tenure, you will observe the depreciation of the property.
On the other hand, freehold condos in Singapore enjoy immunity from this depreciation. Even if you have missed out aforesaid market boom, you can wait easily for the next hike to sell your property. You just need to make sure that the estate is in well-maintained condition meanwhile.
Greater value in land ownership
In a land-scarce country like Singapore, having a freehold property is not less than owning a piece of land. It is a valuable asset. Leasehold property once ended with their tenure, will expire. The fact behind that is, after 99 years you will not be there to own the asset, nor will you be there to pass on your property.
Amber Sea freehold condo residences is a highly anticipated project located along 30 Amber Gardens in District 15 of Singapore. The whole building stands at a land area of 40,917sq ft., and composed of over 132 housing units. Far East Organization developers has backed the complete development to get ready and win the hearts of its future residents.
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