I Regret Buying A DBSS: 5 Homeowners Share Their Biggest Regrets
TLDR Singapore's DBSS scheme faced challenges such as design flaws, developer responsiveness issues, and restrictions on selling. Residents reported various...
Read More
Freehold properties, a term often heard in the real estate market, are properties that are “free from hold” of any entity other than the owner. This means that the owner enjoys complete ownership for perpetuity and can use the land for any purposes, as long as it is in accordance with local regulations. In Singapore, freehold properties are highly sought after due to their perceived value and the freedom they offer. However, these properties come with a higher price tag.
Here are the top five reasons why freehold properties cost more in Singapore.
1. Perpetual Ownership:
The most significant advantage of owning a freehold property is the perpetual ownership it offers. Unlike leasehold properties, which have a fixed term of ownership, freehold properties can be owned indefinitely. This means that they can be passed down to future generations, adding to their appeal and consequently, their cost.
2. Freedom and Flexibility:
Freehold properties provide owners with more freedom and flexibility compared to leasehold properties. Owners have complete control over their property and can use it for any purpose that complies with local regulations. This level of freedom and control is a luxury that many are willing to pay a premium for.
3. Lower Risk of Government Acquisition:
In Singapore, freehold properties cannot be taken back by the government, unlike leasehold properties. This lower risk of acquisition adds to the allure of freehold properties and contributes to their higher cost.
4. High Capital Investment:
Purchasing a freehold property requires a high capital investment. The average price for islandwide freehold condominiums in Singapore is $2,031 per square foot, which is 16.2% higher than 99-year leasehold condominiums. This high initial cost is a significant factor in the overall higher cost of freehold properties.
5. Maintenance and Repair Responsibilities:
As a freeholder, you are responsible for all repairs and maintenance of the property. While this may seem like a disadvantage, it also means that you have complete control over the upkeep of your property, which can be seen as a benefit by some and thus, adds to the cost.
While freehold properties in Singapore come with a higher price tag, the benefits they offer such as perpetual ownership, more freedom and flexibility, lower risk of government acquisition, and complete control over maintenance and repairs make them a worthwhile investment for many. However, potential buyers should carefully consider these factors and their financial capability before deciding to invest in a freehold property.
If you would like to arrange a viewing appointment with us in Singapore, do send us a DM here
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 …
Find Your Dream Home: Top 5 Property Investments for Families in Singapore
As one of the most prosperous countries in the world, Singapore is an attractive destination for families looking to invest...
Read More
Why Some New Condo Releases Outperform Others
TLDR When it comes to the real estate market, familiarity plays a crucial role in the success of larger condo...
Read More
Singapore’s HDB Projects: From Unique Landmarks to Just Another Brick in the Wall?
Take a look at this chill spot in Yew Tee. Someone's gone all out to make it feel like an...
Read More
Should We Reconsider the ABSD Rates?
TLDR We explore the need to reevaluate the current Additional Buyer's Stamp Duty (ABSD) rates in Singapore, considering their impact...
Read More
Top 5 Reasons : Why Do Singaporeans Still Flood The Property Market?
Singapore's property market has been a hot topic of discussion for many years, with its resilience and growth attracting both...
Read More
5 Tips To Spot Winning Investment Properties In Singapore
Investing in real estate is an exciting and potentially lucrative venture. In Singapore, a thriving property market attracts both local...
Read More
Top 5 : Best Themed Cafes in Singapore
Singapore, a vibrant and diverse city, is known for its eclectic mix of cultures, cuisines, and attractions. Among the many...
Read More
6 Reasons to Think Twice Before Hiring a Friend or Family Member as Your Agent
TLDR In Singapore, hiring a friend or family member as your property agent can be risky. Disclosing sensitive financial details...
Read More
Transforming Your Home Loan Situation with Rate Cuts
TLDR When comparing fixed and floating mortgage rates, the present fixed rate of 3% is favorable, but predictions hint at...
Read More
Methods to Beat ABSD and Own Multiple Properties in 2024 (Updated)
TLDR Navigating the Additional Buyers Stamp Duty (ABSD) in Singapore can be daunting for property investors. To save on ABSD...
Read More
7 Essential Considerations to Keep in Mind When Assessing a Floor Plan for a New Condominium Development
TLDR When selecting a property unit, carefully examine the floor plan beyond aesthetics. Consider non-living spaces like ledges and void...
Read More
6 Unexpected Property Warning Signs That Can Be Negative for Some, But Beneficial for Others
TLDR When considering property preferences, what may appear as a disadvantage to some buyers could be a unique opportunity for...
Read More
Top 5 Best Hidden Photography Locations in Singapore
Singapore, a vibrant city-state known for its iconic landmarks and bustling urban landscape, is also home to numerous hidden gems...
Read More
Why The URA Master Plan Matters For Your Property’s Potential
TLDR The URA Master Plan entails significant shifts like the relocation of Paya Lebar Airport or creation of Punggol Digital...
Read More
The 5 Most Popular Types of Properties to Buy in Singapore
The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
Strategies for Overcoming ABSD and Acquiring Multiple Properties in 2023 (Revised)
TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, there are legal strategies available to...
Read More
When Should You Consider a Shorter/Longer Home Tenure?
TLDR Understanding the benefits of long-term home loans is crucial for financially conservative individuals in Singapore. Opting for a longer...
Read More
Top 5 Rules for Investing in Singapore’s Property Market – Expert Insights!
Investing in Singapore's property market has long been considered a lucrative and stable investment option. With its robust economy, strong...
Read More
Unpacking Property Ownership: Joint Tenancy vs. Tenancy-in-Common
TLDR When a property has multiple owners, the choice of ownership type is crucial to determine how shares are distributed...
Read More
