Convert leasehold to freehold. Somehow response is ‘lukewarm’?

Convert leasehold to freehold. Somehow response is ‘lukewarm’?

Jumping for joy, maybe?

If the government allows you to convert your leasehold land to freehold, would you be rushing to the land office like right now? I am very sure many would be jumping with joy and quickly make the necessary arrangements (including preparing money for the conversion) and then quickly go and queue at the nearest land office, correct? Erm… not really. There was this ‘offer’ to convert but the landowners seem to be still taking their time to think if it’s worth doing it. The Menteri Besar is not too happy and has informed that this offer may not be extended yeah.

Article in thestar.com.my. Owners of leasehold properties in Negri Sembilan should grab the opportunity to convert them to freehold status before the state decides to end the offer, says Datuk Seri Aminuddin Harun.

“I hope that the property owners will apply for their freehold titles fast as there may come a time when we may decide to end the offer.

“Also, I would like to remind all that the offer is only for the original owners of the property.

“Once they pass on, the next-of-kin will not be eligible,” he told reporters after chairing the state exco meeting at Wisma Negri.

“The total number of people who have applied is still small.

“This is something that is extremely good and all owners should do so quickly,” he said. Do read the article in full here: Article in thestar.com.my.

I have zero issues to buy leasehold properties yeah

Perhaps the ones who bought these leasehold properties already expected the land to be leasehold and expected to pay for the renewal of the lease at the end. Perhaps these owners did not know about the offer from the MB of Negeri Sembilan. Perhaps convert or no convert does not affect what they are doing on their land currently and may just mean extra payment which they may not want to pay today and prefer to pay in the future. I have no idea if there are payment involved but surely there will be some even if it was not mentioned. Nothing is free these days.

As for leasehold, I was just sharing with a friend the other day. If leasehold and properties are the same price, of course people buy freehold lah. However, if they are the same type and size and location etc, the price difference would already be substantial. That’s why people may still choose leasehold. After all when you rent out, the tenant is not going to pay you more just because your home is freehold lah. In other words, ROI on the price you pay and the rental you get could be higher too. This is why it is perfectly fine. Last but not least, do not buy a freehold property because it is freehold… Buy it because there are other benefits such as great location, well designed, near to your in-law’s home etc. There has to be a reason and freehold is just the icing on the cake. We must not buy the whole cake just to eat the icing yeah. Might as well go buy icing instead…

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