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, building net worth and retirement matters




Freehold and leasehold differences

 Citibank Cash Back Card - up to $350 cash back* - Click to Apply Now 
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
Compare civil service salary ( 1 2 3... Last Page)
10,092 Replies, 5,576,534 Views
Queries about Cpib application ( 1 2 3... Last Page)
1,088 Replies, 498,678 Views
Lawyer Salary ( 1 2 3... Last Page)
7,546 Replies, 2,596,978 Views
Pay for digital marketing agencies
7 Replies, 2,096 Views
Any Kaplan students here can land... ( 1 2)
14 Replies, 947 Views
ST Electronics ( 1 2 3... Last Page)
666 Replies, 210,137 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,291 Replies, 906,143 Views
Sign On After 30? ( 1 2 3... Last Page)
33 Replies, 2,800 Views
[advice] Recruitment agency... ( 1 2)
14 Replies, 1,824 Views
DBS Management Associate Program... ( 1 2 3... Last Page)
1,750 Replies, 268,729 Views
Android, iPhone and iPad Apps For...
2 Replies, 2,341 Views
How much do you earn and save? ( 1 2 3... Last Page)
96 Replies, 12,418 Views
Anyone being hired during covid... ( 1 2)
12 Replies, 575 Views
HR Career advice
2 Replies, 1,341 Views
where can i buy nintendo stock?
5 Replies, 3,290 Views
Can share your your car...
1 Replies, 136 Views
What's the graduate officer... ( 1 2 3... Last Page)
53 Replies, 12,694 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
2,906 Replies, 1,082,970 Views
Whats your net worth ( 1 2 3... Last Page)
2,728 Replies, 796,781 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,292 Replies, 1,903,945 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
156 Replies, 75,029 Views
need some info on CNB
0 Replies, 120 Views
Working in HDB ( 1 2 3... Last Page)
335 Replies, 263,187 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,183 Replies, 967,452 Views
Career as Teacher ( 1 2 3... Last Page)
2,653 Replies, 1,603,607 Views
AML/Compliance/KYC professionals... ( 1 2 3... Last Page)
1,379 Replies, 563,900 Views
High Finance Thread ( 1 2 3... Last Page)
88 Replies, 15,254 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 07:06 AM.


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