Freehold and leasehold differences - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Freehold and leasehold differences

Reply
 
Thread Tools
  #1 (permalink)  
Old 28-05-2007, 11:57 PM
Salary.sg
Guest
 
Posts: n/a
Default Freehold and leasehold differences

In short, the more expensive may not be good, but the higher yield may not be better. When buying properties, you should at least consider the following factors and weigh your options:

- Price. Freehold properties are generally more expensive than leasehold properties, due to the fact that the land tenure for freehold properties lasts, well, forever (barring exceptional circumstances).
- Rental yield. Because the rental value usually depends on factors like location, amenities, how old/new it is, and even architectural design and interior design, but not on land tenure, rental yield is usually higher for leasehold properties. Say, a freehold property costs $1 million and fetches $4,000 in rental per month. Its rental yield is 4.8%. A similar property with a leasehold tenure might cost just $600k but fetch the same amount of rent. This gives you an 8% yield!
- Value. A simplistic rule of thumb is that a leasehold property's value will decrease by 1.5% in value every year. Freehold properties generally appreciate in value over the years (which is probably why property tycoons get so rich). Note that you can now use CPF to fund your leasehold property purchase as long as it has a Minimum Lease Period of 30 years, subject to certain conditions (see CPF properties scheme for details). Prior to the CPF policy change, the minimum required was more restrictive, at 60 years.


http://www.salary.sg/2007/freehold-a...d-differences/

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


» 30 Recent Threads
Advantages
3 Replies, 1,210 Views
How much are you earning per annum? ( 1 2 3... Last Page)
12,107 Replies, 3,887,743 Views
DBS tech seed programme ( 1 2 3... Last Page)
168 Replies, 17,807 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
1,673 Replies, 1,372,572 Views
Compare civil service salary ( 1 2 3... Last Page)
10,907 Replies, 6,031,317 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,461 Replies, 2,051,190 Views
Lawyer Salary ( 1 2 3... Last Page)
9,726 Replies, 3,176,993 Views
ST Electronics ( 1 2 3... Last Page)
1,052 Replies, 282,606 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
1,054 Replies, 834,969 Views
Credit Suisse - IB Academy
0 Replies, 54 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,802 Replies, 1,181,776 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,517 Replies, 1,004,519 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
363 Replies, 125,686 Views
Roles in accenture singapore ( 1 2 3... Last Page)
425 Replies, 277,537 Views
HSBC Graduate Programme 2021 ( 1 2 3)
27 Replies, 3,340 Views
Career as Teacher ( 1 2 3... Last Page)
2,959 Replies, 1,815,670 Views
singapore Pools
1 Replies, 3,689 Views
advice pls
4 Replies, 242 Views
SEA Limited
3 Replies, 698 Views
Volunteering as a civil/public...
0 Replies, 180 Views
Engineer Pay ( 1 2 3... Last Page)
147 Replies, 54,876 Views
Standard Chartered International... ( 1 2 3... Last Page)
54 Replies, 56,891 Views
Mid-Year Civil Servant Bonus 2020 ( 1 2 3... Last Page)
155 Replies, 37,037 Views
Bunker trader ( 1 2 3... Last Page)
47 Replies, 24,390 Views
How much does a typical FP&A... ( 1 2 3)
24 Replies, 2,334 Views
Civil Service Bonus 2020 Year End
2 Replies, 427 Views
Any advice for a final year...
3 Replies, 3,579 Views
Advice for a troubled Designer ( 1 2)
13 Replies, 4,857 Views
Insurance Management Associate... ( 1 2 3... Last Page)
63 Replies, 20,793 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 07:15 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2