There’s no doubt that Singapore’s prime locations have the edge when it comes to selling and acquiring luxury properties. All the reasons for investing, particularly in the city, are here. However, despite being capital-ready and the eagerness to venture the flourishing real estate market, many are still having second-thoughts on how and why they should do so. One of the main reasons is being confused on whether they would choose a developer that offers freehold property or opt for a 99-year leasehold property instead. So what really are the differences between the tenures? Should you get a Freehold or the 99-year leasehold property?
Freehold properties (Freehold or the 99-year Leasehold Property?)
– these are the properties wherein the unit can serve whatever purpose the owner would want it to be. You will enjoy the rights to these units for as long as you live. Moreover, it can also be inherited by your family as well. The government also allows the beneficiaries of Central Provident Fund to use their money for purchasing homes that have freehold tenure. These properties also depreciate slower compared to the units offered in 99-year leasehold term. This is why the value of these units is usually higher compared to its counterparts. Some of the most popular projects today that offer freehold terms include Robin Residences, Gramercy Park, The Rise @ Oxley, The Cristallo, Whitley Residences, The Orient @ Pasir Panjang, Adana at Thomson and Terra Villas.
99-year leasehold properties (Freehold or the 99-year Leasehold Property?)
– most condominiums in Singapore such as High Park Residences, Botanique @ Bartley, North Park Residences, Highline Residences and Sophia Hills offer this type of tenure. These are all appealing to the investors because the price value is lower compared to the freehold properties. But unlike the latter, leasehold owners will only have the right to the property for certain number of years only. Other than that, the value of these properties also depreciates quicker compared to freehold homes.
So which one is the better option? According to experts, it will all depend whether you would like to have a non-landed or a landed property. For those who are interested in investing in landed properties, freehold property is advisable. On the other hand, it is recommended that you get a 99-year leasehold for those non-landed investments in Singapore. The latter can give you higher percentage gains if you consider buying or selling it at a perfect time. You may like to view some of the Freehold landed properties by visiting One Surin, Place-8 and Watercove.