Salary.sg Forums - View Single Post - Case Study 3 - How Couple got Stuck with Property
View Single Post
  #5 (permalink)  
Old 21-01-2008, 03:40 PM
SmartTrader---
Guest
 
Posts: n/a
Default 761

First off, I like your blog and enjoy reading every entry.

Although I agree that leasehold intrinsic value will drop over time due to decay. But I disagree that freehold is always better. There are also cases where leasehold can be a better investment. You have to remember that a freehold property can cost from 10%-40% more, so would you rather buy a leasehold property in a more central location or a freehold in an outlying area for about the same price?

For a reference, see this article:

http://www.salary.sg/2007/freehold-and-leasehold-differences/

Also, my opinion is that timing is very important. In a bear market, even freehold property prices will plunge, especially when the prices are inflated like bubbles. So don't overpay for the property. In the crash of 97, the property price index dropped 45% over 3 years.

From the way stock markets are behaving lately, it looks like we are in for a bear market.
Reply With Quote