When you are first starting out, the idea of learning about properties can seem scary. But knowing what freehold and leasehold mean will help make your decision much easier in terms of which type to choose for long term investments. In this article, we’ll discuss if it’s actually worth to buy a freehold condo in Singapore!
Is a freehold condo in Singapore more valuable than other types?
The freehold condos are a great investment because you’ll never have to worry about your property lease expiring. This means that if freeholders own their homes, they can hold onto them for as long as they want to.
However, the government can still seize back your land for development purposes according to The Land Acquisition Act (LAA). Of course, homeowners will be given market-level compensation. However, this is usually less ideal than being able to sell on one’s own terms.
Collective en-bloc sales are another way for developers to buy off your estate’s land by offering homeowners an attractive resale price. This can only happen if 80% of residents agree, but the amount offered may be too much to resist!
To answer the question, the durability of freehold condos makes them a better investment than comparable leasehold properties. If you can afford it, then this will be an excellent deal for your bank account because the profit downplays itself in many years’ time!
Benefits of purchasing a freehold condo
When you own a freehold condo, there’s no better feeling than paying off your final month of mortgage or housing loan. You know that the home is yours forever and it can be hard work but with all those rewards on offer. So, who wouldn’t want one?
For those who are interested in passing down their homes, freehold condos make it easier to do so. It is easier to pass on to future generations!
Your home is a key investment that will last for years to come. You can provide your children or grandchildren with the roof over their heads they need. This also eases them into homeownership by giving up ownership when you pass on! Freehold properties are definitely something worth considering if you want an established place in good condition. Perfect as either part of some retirement funds too.
Freehold condos are the best investment for your money
Freehold condominiums offer a great way to buy and own your forever home. They can be more expensive than leasehold properties, but they also have the potential of increasing in value long after you purchase them! You may even decide to downsize when you’re well into retirement so that your liquid funds are more accessible.
Freehold condos have fewer CPF restrictions
Don’t give up hope of owning your own home if you’re struggling financially! Central Provident Fund (CPF) savings can be used for purchasing freehold condos. Depending on how much money is in the account, it might allow one to foot a significant portion or even reduce monthly mortgage payments down drastically.
With all the benefits of owning your own home, leasehold owners might end up paying more than those with freeholds. This is because they cannot use their CPF savings to buy homes under 20 years of remaining lease that must also cover the youngest buyer until they are 95 years of age. The government has a safety net for the elderly that prevents them from losing their homes when they are in retirement. But guess what, you won’t have to worry about this because of freehold properties!
Are HDB flats known to be freehold or leasehold?
Housing Development Board (HDB) flats are 99-year leasehold properties that function in a similar manner to condos as far as property ownership is concerned. Since these public housing units were designed to be affordable for the majority population of Singapore, buyers will enjoy wider grants and subsidies.
So, is it worth to buy a freehold condo in Singapore? When deciding whether to buy a leasehold or freehold condominium, the personal choice rests with you. Some people are willing and able to take on higher risks in order for an opportunity at owning their home indefinite while others would rather spend less money upfront. We hope you enjoyed reading our article! Click here to read more of our articles!