Singapore Decoupling Guide
TLDR Decoupling in Singapore's real estate refers to the process of separating property ownership to avoid Additional Buyer's Stamp Duty...
Read More
TLDR
When it comes to property investments in Singapore, understanding the differences between leasehold and freehold properties is crucial. This article emphasizes the benefits of owning a freehold property over a leasehold one, highlighting the advantages of perpetual ownership, higher resale value, and fewer restrictions on loans and CPF usage. While leasehold properties are not necessarily bad investments, freehold properties are considered better investments in today’s market due to their long-term value retention and flexibility. Conducting thorough research before making a purchase is essential for any property investment decision.
In Singapore, where property is a hot topic, it is common to discuss the differences between leasehold and freehold properties.
In this article, we will explore the advantages of owning a freehold property over a leasehold one. It is worth noting that while we highlight the benefits of freehold properties, we do not intend to offend or discredit leasehold properties. Rather, we seek to share our opinion on why we believe freehold properties are a better investment in today’s market.
One of my client grew up in a 99-year leasehold cluster house that his father had bought in 1981. He had fond memories of walking around the estate with his father, who often regretted not investing in multiple freehold properties during the 80s and 90s when he was offered a massive discount. He sold his 1981 property for $1.15 million in 2017, and the highest translated price for it is $1.46 million in late 2021. While this may seem like a good price for a 2,000 square feet property, there is an issue with this property – it is old and may not retain its value in the future.
He was not concerned about the tenure of properties. He believed that a 99-year leasehold property could still hold its value. However, he soon realized that older leasehold properties have limitations to loans and CPF usage. For example, for properties with less than 30 years of lease remaining, no CPF can be used to buy a property.
In today’s market, where there is a shortage of land and an increasing population, freehold properties are becoming more valuable. A freehold property gives the owner perpetual ownership of the land and the building on it. This means that the owner has complete control over the property and can renovate, expand, or sell it at any time.
A freehold property also has higher resale value than a leasehold property. This is because buyers are willing to pay a premium for a property that they can pass down to their children and grandchildren. Moreover, a freehold property does not have the same restrictions as a leasehold property when it comes to loans and CPF usage.
In conclusion, while leasehold properties are not necessarily bad investments, freehold properties are better investments in today’s market. With a freehold property, the owner has complete control over the property and can sell it for a higher price in the future. However, as with any investment, it is important to conduct thorough research before making a purchase.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
Top 5 Best Scenic Drives in Singapore
Singapore, a bustling city-state known for its modern architecture and vibrant culture, also offers some of the most picturesque driving...
Read More
Top 5 Must-Do Experiences in Singapore for First Timers
Singapore, a vibrant city-state known for its diverse culture and rich history, offers an array of unique experiences for first-time...
Read More
Five Pitfalls of Selling a Home for the First Time
TLDR When selling your first home, avoid holding out for a better offer as it may backfire. Let your agent...
Read More
What Factors Contribute To Singapore’s Real Estate Market Exhibiting Less Volatility Than Other Major Cities?
TLDR The Singaporean real estate market has remained stable due to government cooling measures. These include Additional Buyer's Stamp Duty...
Read More
5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers
TLDR Renting property in Singapore as a foreigner can be challenging due to the high cost of living. To navigate...
Read More
Top 5 Hawker Centres in Singapore for Local Food
Singapore, a melting pot of diverse cultures and rich culinary heritage, is home to some of the most delectable local...
Read More
Surprising Prediction: Will Singapore Property Prices Drop in 2024?
TLDR When considering the current real estate market in Singapore, it's crucial to understand the impact of factors such as...
Read More
Top 5 Places to Watch Fireworks in Singapore
Singapore is known for its stunning skyline and vibrant celebrations, especially during events like National Day and New Year's Eve....
Read More
Invest During the Bearish & Exit During the Bullish
TLDR A comprehensive overview of the real estate market trends, emphasizing the importance of strategic property analysis and investment decisions....
Read More
Why Can’t Everyone Have Homes In Good Locations?
TLDR In a nutshell, the Singapore property market is undergoing significant changes, with the introduction of a new housing classification...
Read More
Top 5 Factors : Why Now Is the Perfect Time to Invest in Singapore’s Real Estate Market – Insider Analysis!
Singapore's real estate market has always been an attractive investment destination for both local and international investors. The city-state's stable...
Read More
Singapore’s Urban Landscape Transformation: 5 Key Things You Need to Know
Singapore's urban landscape has undergone significant changes over the years, with the city constantly evolving to create a sustainable and...
Read More
When Is The Best Time To Buy A New Launch?
TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...
Read More
Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets
Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....
Read More
3 Exciting Residential Sites Coming Soon!
TLDR The Lion City is undergoing rejuvenation with upcoming developments in coveted areas like Clementi and sites near MRT stations....
Read More
5 Tips : How To Invest In Singapore Property Without Losing Sleep Over It
Investing in Singapore's property market can be a lucrative venture, but it's important to approach it with caution and a...
Read More
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction
5 Qualities to Look for in an Agent to Ensure a Smooth Transaction Here are 5 qualities to look for...
Read More
Top 5 : What Are The Key Factors That Drive Foreign Investment In Singapore’s Real Estate Market
Singapore, a thriving city-state in Southeast Asia, has become a magnet for foreign investors looking to capitalize on its booming...
Read More
Housing Affordability in 2023: Is Singapore Property Truly Unaffordable?
TLDR Singapore’s property market faces challenges with high prices, especially in private housing. While public housing remains more affordable, the...
Read More
