Buying a freehold property in Singapore could be one of the biggest decisions you will have to make. It is one of the most valuable investments. Most people would prefer to go with freehold properties because of complete ownership. This means that you and your family are going to own the property forever. But before you decide to buy, there are a few things one must know. Let’s go over them one by one.
Understand What Freehold Property Means
In Singapore, freehold means complete and permanent ownership; you will not have a problem when the time of the lease expires. Leasehold properties have some time limits, usually 99 years. Therefore, once the lease expires, the property will revert to the government. With freehold, it is nowhere near this scenario. For this reason, attractive buyers often opt for freehold properties like Bloomsbury Residences. It gives a sense of long-term security and peace of mind while allowing passing to future generations without a decrease in value.
Freehold Properties Are More Expensive
One of the first things you will probably notice is the difference in prices. Freehold properties are generally more expensive than leasehold ones, primarily due to the fact that freeholds grant lasting ownership. Basically, you are buying, in practical terms, something which lasts forever. Given the fact of being more expensive, you will have to plan your budget more carefully. You should know how much you can afford. You need to consider the additional costs of legal fees and stamp duty.
Location Matters a Lot
Of course, the value of your property will always depend on its location. Although you might be buying a freehold property, paying attention to the area is important. Therefore, check for proximity to MRT stations, schools, and shopping malls.
A good location will make future resale much easier, and if you plan on renting it out, it will bring in better rental income.
Freehold Doesn’t Always Mean Better Returns
Many people think freehold properties give better returns. This is not always true. The rental yield depends on the location, size, and condition of the property. Some leasehold properties in prime areas can give higher returns than freehold ones in faraway places.
So, you need to do your research. Look at past data and talk to property agents. Understand the market trends before you buy.
Check the Developer’s Track Record
Before buying any property, check who built it. Look for a developer with a good history. A reliable developer means better construction quality. They will also follow legal rules and offer better after-sales service.
Visit show flats if possible. Ask questions about the building materials and design. A well-built freehold property will have fewer maintenance issues later.
Conclusion
Buying a freehold property in Singapore is a smart move for many people. But you need to be well-prepared. Understand what freehold means, check your budget, and choose a good location. Also, know the legal steps and plan your financing. With careful planning, your freehold property can be a great asset for life.
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This post brought to you by M Rafiq
Photo: iStock
