My cousin sister has moved into her spanking new leasehold condo last year. After waiting for 3 years plus including some minor renovations, she has moved into her new home which she said comfortable and how lucky for her to have gotten such a place amidst all the high prices these days everywhere in Klang Valley. Yes, it’s a leasehold. The current place that I am staying is also leasehold. My next condo that I am moving to next month? Leasehold too. Am I crazy over leasehold properties?
Many years ago, she asked me about the property. She said, ‘but it’s leasehold’. I told her, the current place you are staying also leasehold, do you feel anything wrong with it? She laughed. Anyway, I briefly explained. When you buy 99 years, you may be 30 years old. When you are 60 years old, your lease still have 60 years to go. By then your children is 30 years old. When you reach 90 years old and your son reaches 60 years old and your grandson reaches 30 years old, you still have 30 years left on your lease. When you are 120 years old, your son is 90 years old, your grandson is 60 years old and your grandson’s son is 30 years old, your lease expires. At that time, your grandson’s son’s son just born. Seriously, you expect the government of the day to just ask the hundreds if not thousands of people in your condo to MOVE OUT? Just like that?
Let’s be very honest. If if prices are exactly the same and the location is the same, I would take freehold anytime. However, if you noticed, leasehold properties are typically cheaper. Perhaps 15-20% cheaper sometimes. Most of the time, the leasehold properties are also in good areas. As an example, Kelana Jaya. Another example, Damansara. Long time ago, Damansara was also shunned upon. Today, the only ones not sold yet would soon be snapped up because the MRT station will be up to Sungai Buloh.
I hope you already get what I mean. If not, fine, please don’t buy leasehold. 🙂
revised on 1 March 2014
Next suggested article: First home? buy leasehold