5 Apr 2023
Freehold Or Leasehold , which is better?
When buying a property, choosing between freehold and leasehold has always been a common dilemma for many homebuyers. While price and property rights are important factors to consider, there are several other factors that must be taken into account before making the final decision.
Firstly, freehold properties may be more expensive than leasehold properties, especially in areas like Kuala Lumpur and Selangor. However, if your budget is limited, you can consider choosing a leasehold property with a longer lease term to retain the property for a longer period of time. Or you can sell the property and buy a freehold property when you have more money.
Secondly, it is important to consider your personal needs and requirements such as location, transportation, surrounding facilities, and personal comfort. Both freehold and leasehold properties have their own advantages and limitations.
Freehold properties offer more flexibility and freedom where you can make any structural changes, rent or do any renovations without strict limitations. Additionally, an indefinite property right makes the property more attractive and can be sold at a higher value.
However, to enhance their competitiveness, leasehold properties often offer certain facilities and equipment such as swimming pools, gyms, and clubhouses, that freehold properties do not have. Additionally, the location and rental of leasehold properties are usually better than freehold properties, making them more suitable for real estate investors.
In summary, when deciding to buy a freehold or leasehold property, it is important to consider multiple factors including budget, personal needs and requirements, property characteristics, and investment value. If all factors are the same, then it is better to choose a freehold property.
