Leasehold or freehold? As we ventured into the adult world, we are told countless times from family, co-workers and strangers that buying a house is a lifetime commitment. Yes, an important and daunting decision to make – besides marriage, having children and whatever is important on your bucket list.
But when we are living in a world with so much information available at our fingertips, confusion rises evermore. So which one do we choose – leasehold or freehold?
Freehold tenure is the right to ownership of a property until the end of time. You could pass on the property to your children or anyone else after your death and they can pass it on to their children, and then their children, followed by their children or whoever they choose…until the end of time indeed.
As forleasehold, you are not the owner of any property or land. You are merely leasing it for an amount of time and that amount of time could also be less if you buy a pre-owned property.
When you reach the end of the tenure, an application to extend the lease will then have to be submitted to the state government, where if approved, you will have to pay a fee.
Making a decision of a lifetime between owning a leasehold and freehold property does not solely depend on the price and cost – despite finding the perfect home in Selangor or Kuala Lumpur.
At the end of the day, it depends on individual buyers on whether it is worth compromising on freehold status for other factors like affordability and location or looking forward to a leasehold with a more attractive and equipped with facilities and features.
Looking for the perfect dream home – be it a house, apartment or condominium for yourself or with your partner? Have a chat with us, and our dedicated team will help you make it a reality!
Source: IQI Global Blog
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