Your search results

Freehold Properties vs Leasehold Properties: Which is Better?

Posted by Jayson Ang on June 26, 2023

| 0

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 …

Mandarin Top 5

5 Tips for Renting Property in Singapore

Jayson Ang – March 15, 2024 –

Renting property in Singapore can be a challenging task, especially for those who are new to the country. With Singapore's...

All Opinion

The Perils of Subletting in Singapore: Why Paying Rent On Time Isn’t Always Enough

Jayson Ang – May 3, 2026 –

TLDR Subtenants often mistakenly believe that paying rent consistently guarantees security. However, their rights are limited since the main tenant...

All Buying Tips

Can Your HDB Flat Safeguard Your Retirement?

Jayson Ang – December 7, 2022 –

TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...

All Blog Posts Buying Tips

Discover How The CPF Accrued Interest Can Impact Your Property Sale Proceeds

Jayson Ang – April 12, 2023 –

Singaporeans are renowned for being smart and savvy - especially when it comes to selling their homes, whether it's an...

All Buying Tips Opinion

Making Sense of 99-Year Landed Home Investments in Singapore

Jayson Ang – August 25, 2024 –

TLDR Investing in a 99-year leasehold landed property in Singapore can be a lucrative venture due to the country's land...

Mandarin Top 5

Top 5 Best Green Spaces to Picnic in Singapore

Jayson Ang – May 5, 2025 –

Singapore, a bustling city-state known for its modern architecture and vibrant culture, is also home to numerous green spaces that...

All Blog Posts Buying Tips

Ready To Make The Jump From HDB To Condo? This Guide Has All The Answers!

Jayson Ang – January 5, 2023 –

TLDR When upgrading from an HDB flat to a condo, consider factors like location proximity, amenities, and regulations. Decide whether...

Blog Posts Mandarin Top 5

Travel Without Worry: The 5 Best Telco Companies For International Roaming In Singapore

Jayson Ang – July 8, 2023 –

Travel Without Worry: The 5 Best Telco Companies For International Roaming In Singapore When it comes to choosing a mobile...

All Buying Tips Selling Tips

Could It Be Wise to Sell Your Property After Just 3 to 4 Years?

Jayson Ang – February 5, 2024 –

TLDR In this blog post, the writer delves into the Singapore property market, particularly focusing on the effectiveness of quick...

Mandarin Top 5

Top 5 Tourist Attractions in Singapore

Jayson Ang – July 18, 2023 –

Top 5 Tourist Attractions in Singapore Singapore, a vibrant city-state located in Southeast Asia, is known for its diverse culture,...

All Blog Posts Opinion

5 Reasons Why You Should Consider Hiring an Agent Instead of DIY-ing It

Jayson Ang – June 9, 2023 –

TLDR Understanding the complexities of the real estate market and transactions can be overwhelming. Enlisting the help of a real...

Mandarin Top 5

The 5 Secrets To Successful Singapore Property Investing Revealed

Jayson Ang – July 4, 2024 –

The vibrant property market in Singapore has attracted numerous investors and speculators looking to profit from the nation's thriving conditions....

Mandarin Top 5

Top 5 : Most Profitable Neighborhoods To Invest In For Singapore Property Investment 2025

Jayson Ang – December 29, 2024 –

As the global economy continues to recover, the real estate market in Singapore remains a promising investment opportunity for savvy...

All Buying Tips Opinion

6 Possible Risks of Purchasing a One-Bedroom Apartment in Singapore: Key Considerations to Be Aware Of

Jayson Ang – July 13, 2025 –

TLDR One-bedroom condos in Singapore are attractive for their lower entry price and rental potential, but buyers should be aware...

Mandarin Top 5

Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market

Jayson Ang – May 8, 2025 –

Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...

Mandarin Top 5

Top 5 Best Instagrammable Spots in Singapore

Jayson Ang – November 7, 2024 –

Singapore, a vibrant and modern city-state, is known for its stunning architecture, lush green spaces, and colorful streets. With its...

Mandarin Top 5

Top 5 Live Music Venues in Singapore

Jayson Ang – May 20, 2024 –

Singapore, a vibrant and multicultural city-state, is well-known for its diverse food scene, stunning architecture, and bustling shopping districts. However,...