9 Answers

askguru expert
Hi tan, thanks for writing to us on AskGuru.

A property can be held under either a freehold or leasehold. A freehold property is generally favoured as it means you can own it in perpetuity. There are two type of freehold land in Singapore, Estate in Fee Simple and Estate in Perpetuity

Estate in Fee Simple and Estate in Perpetuity refer to freehold estates where the owner holds the land in perpetuity (forever), subject to the state's right to zone and re-zone the land, to impose height restrictions, plot ratio, property taxes and to acquire land compulsory for public good.

Fee Simple is the highest form of ownership interest and the largest estate recognised by law. Fee Simple Estates which were granted before 1902 still remain in the Singapore system, as it is a complete ownership that exists for an unlimited time. The meaning of the term is as follows:

Fee - can be inherited
Simple - by anyone*
Absolute - will not end on a certain event

This means it can be inherited, given away or sold by the owner to any person, and it will not end.

An estate in perpetuity refers to a freehold property. To be more specific, an estate in perpetuity means the estate was created between 3 May 1907 and 1 March 1961. Such estate is also called a Statutory Land Grant (SLG). An estate in perpetuity is created under the State Lands Act and is subject to the terms, covenants and conditions of the State Lands Act.

Ultimately, whether you opt to buy a leasehold or freehold property depends on its location, your investment objective, its price and en bloc potential.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More

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askguru expert
Hi tan, thanks for writing to us on AskGuru.

A property can be held under either a freehold or leasehold. A freehold property is generally favoured as it means you can own it in perpetuity. There are two types of freehold land in Singapore, Estate in Fee Simple and Estate in Perpetuity

Estate in Fee Simple and Estate in Perpetuity refer to freehold estates where the owner holds the land in perpetuity (forever), subject to the state's right to zone and re-zone the land, to impose height restrictions, plot ratio, property taxes and to acquire land compulsory for public good.

Fee Simple is the highest form of ownership interest and the largest estate recognised by law. Fee Simple Estates which were granted before 1902 still remain in the Singapore system, as it is a complete ownership that exists for an unlimited time. The meaning of the term is as follows:

Fee - can be inherited
Simple - by anyone*
Absolute - will not end on a certain event

This means it can be inherited, given away or sold by the owner to any person, and it will not end.

An estate in perpetuity refers to a freehold property. To be more specific, an estate in perpetuity means the estate was created between 3 May 1907 and 1 March 1961. Such estate is also called a Statutory Land Grant (SLG). An estate in perpetuity is created under the State Lands Act and is subject to the terms, covenants and conditions of the State Lands Act.

Ultimately, whether you opt to buy a leasehold or freehold property depends on its location, your investment objective, its price and en bloc potential.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More

0

Geryl Lim
Hi Tan,

Leasehold property: You own the property for the amount of lease period minus off the period taken for construction.

Freehold property: You own the property almost indefinitely subjected to land acquisition act.

It depends on the profile of your investment. Are you looking at long term investment or interested in quick returns?

There are various type of investments one can look at so if it is possible, let me know your profile type for me to advise better.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565
Email: lim.geryl@yahoo.com.sg Read More

0

Dalen Chee
Hello Tan,

do you mind e-mailing me so I can reply you via email? I have some very insightful and detailed tips to share with you regarding Leasehold Vs Freehold investing and I strongly believe you will benefit and not regret. I look forward to hearing from you :)

Warmest Regards
Dalen Chee
email : dalen550@gmail.com
my web : www.96952550.com Read More

0

Jerry Wong 黃崇豪
Hi Tan

The difference may be deceptively simple since the leasehold just means it has a decaying lease while the freehold property means you can hold on to it forever.

In simple words, as an investment point of view if you compare two properties which are exactly identical(which is not possible), the FH will be more expensive than the LH and the LH would have better rental yield in the short term. However, as time goes by, the LH will decay in value and hence result in a lower capital appreciation compared to the FH. And when it reaches 99 years, it has no value at all.

Unfortunately, this is not the case in real life. If you understand the concept and master plan of URA, for some areas, the zoning will never have FH status. This also means that the location of the property is tied to the lease. And as most people tell you the number one thing you should look for a property is location, location and location.

In addition, there are many factors to consider since no two property are exactly alike. In fact, differences between units can be very different even within the same development. Not to mention things like architectural design, facilities, building facing and even for some people the feng shui of the overall site.

However, if you do purchase a property following URA's master plan, whether it is LH or FH, you investment is going to reward you at the end of your day.

Contact me if you require any further analysis.

Best Regards
Jerry Wong
Sales Manager
Huttons Asia Pte Ltd
CEA: R006071F
HP:97429185
e-mail:jerrywong.property@gmail.com
www.developersalesteam.sg Read More

0

Shao Inn Tian
Hi Tan

Generally leasehold properties are more affordable while freehold properties are more resilient in price.

Leasehold properties are generally in better locations eg, beside MRT stations.

So it boils down to what is the purpose of your investment.

I have attached a link here, you can get more information from this article.

http://www.propertywire.com/news/asia/singapore-freehold-property-prices-201111115781.html

Hope this helps!

If you have further questions, pls feel free to contact me.

Inn Tian
9068 8568
inntian@gmail.com Read More

0

Natasha Goh
Dear Tan,

Freehold and leasehold of 999-years are of similar value, thus I would differentiate between freehold/999-yr lease versus 99-year lease instead of just freehold versus leasehold.

If given a choice between Freehold/999yr and 99-yr, the former will always be more valuable, assuming all other conditions are almost similar.

A real-life example would be Southhaven I & II, both very similar in style and located side-by-side. The 99-year Southhaven I trails its 999-yr counterpart Southhaven II by an increasingly widening margin.

I've written an article about this subject on my blog, do have a read and feel free to share your comments!

http://natashagoh.com/2012/05/30/the-freehold-premium-how-much-is-forever-really-worth/

Warmest regards,

Natasha Goh , Bachelor of Law (NUS) Hons

Sales Manager (SRI5000)
Reg No: R045004B

Mobile - (65) 9834 3604

Web - http://natashagoh.com
SRI5000 - An Elite Division of SLP Realty (Reg: L3009793I) Read More

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Mani Subramanian Veeramani
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Mani Subramanian Veeramani
Hi

Want to find out more detailed and specific answers that are not being discussed here?

Get it now!
(copy and paste this link on your browser)

http://bit.ly/2LSmlku

Have similar or related questions?

People found the answers here!

http://bit.ly/DOWNLOAD900Tips

I have a proposal and better solutions for you.

www.bit.ly/SendMeMoreDetails

#AskRealtorMani

+65 8300 4411 www.linkedin.com/in/AskRealtorMani

First, save my name card http://bit.ly/ContactMani

Let's get started... WhatsApp: https://wa.me/6583004411?text=Hi Read More

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