Freehold Condominiums In Singapore: Is It Better Than Leasehold?
When you are searching for a house in Singapore, there are a number of options you can consider depending on your need. No doubt, condominiums are one of the best and hottest selling pieces of real estate in Singapore due to their ease of management, proximity to amenities, cheaper cost, and the sense of community they create.
When it comes to buying real estate in Singapore, you should understand that the country is limited in the terms of physical lands and liveable parcels. This is one of the main reasons why condos are best selling pieces of real estate in Singapore. It is a popular choice amongst working class citizens, young professionals, couples and even elderly people. This type of real estate is indeed feeding the desire of many urbanites to have a place they can call a home in some of the best Singaporean cities.
There are other reasons why you may consider condos when you are searching for a real estate to buy in Singapore. Some of the most popular reasons to consider this type of investment include:
- Condos guarantees safety and security
- Condos are located in prime areas
- Condos are near to amenities such as public transport, hospital, school, and police stations.
- Condos allows you to enjoy premier facilities at a fraction of its cost
- Condos have breathtaking views
- Condos cost less to maintain
- Condos are more affordable than landed properties
- Condos provide you option to earn passive income
- Condos can be customized for large families
Which Type of Condo is the Best in Singapore: Free or Leasehold?
When you are considering investing in a real estate in Singapore, there are two of properties you should consider. These properties include:
They have their advantages and disadvantages and we are going to take a look to know which one is the best.
What is leasehold? Leasehold is the type of buildings that were developed by the government or a condominium corporation. In most cases, they have several units within one structure, on one piece of land. Homeowners can purchase this type of property but they only own the property and not the land on which the condo was built.
The ownership of the building usually lasts for a fixed term at the end of which the possession of the property will revert back to the freeholder. Some homeowners in Singapore prefer this option because it means they will just have to pay a straight fee every month.
As a leasehold owner, you won't be responsible for maintaining the building. This will be done by the landlord but you will get the share of the cost by paying a service charge to your landlord. There are also other charges you might incur when you have leasehold.
There are two types of leasehold; 99-year and 999-year. If you invest in a 99-year leasehold, the property will go back to the owner at the end of the term. The other type of leasehold which is 999-year is considered as a freehold because of the longevity of the ownership term. Currently, there are about 492 99-year leasehold condos and 138 999-year leasehold condos in Singapore.
Before investing in this type of property, you must be aware of the costs and limitations involved.
What is freehold? Freehold allows you to own the condo you just bought, as well as the land the condo was built on. Once you invest in freehold condominiums, the property, and the land is yours to do whatever you like. You can choose to redesign the property, improve it or sell it in the future.
Freehold Condos are the most common type of condos in Singapore. Currently, there are about 1987 freehold condos in Singapore and you can invest in them if you know how to do it right and why.
Why is Freehold Better?
There are a lot of advantages to investing in freehold condominiums in Singapore. Apart from owning a condo, you will have a land to call your own which is much more valuable and the value will always increase with age.
The ownership structure of freehold allows you to turn your property into a place you can truly call a home. You can remodel the exterior of your house to look beautiful and inviting. You can as well make improvements in the lawn and other landscaping areas without first seeking permission from the landlord or losing the investment you made on the design at the end of your ownership term.
Moreover, since you own the property, you don't have to worry about the lease running out, dealing with the landlord, paying ground rent, service charges and every other ridiculous landlord charges. You can even rent it out and make passive income from your freehold property.
Buying a Freehold as a Group
When you cannot afford to buy a freehold property, you can team up with other leaseholders to purchase a freehold from the landlord. This can be done as long as other leaseholders agree to buy a share.
To do this, you and other leaseholders living in a block of flats can form what is known as a "Commonhold Association" and take the ownership of the freehold building or extend your lease fairly easily for up to 999 years. The management of the property will be done through the company you formed.
You should consider all your options when you want to buy a condo in Singapore; this will help you to get the best condo that will fully satisfy your needs. Another factor you should consider when it comes to deciding between freeholds and leaseholds is that freehold tends to fetch a slightly higher price per square foot (PSF) than leasehold but leaseholds tend to be located near an MRT station.
However, the liberty and freedom from charges that you will enjoy when you own a freehold property make it very attractive. You should also know that it allows you to earn passive income from your property as you can rent it out to leasehold owners. Whether you are looking for a freehold or leasehold condo in Singapore, we can help you make the best choice, please contact us immediately to see the available properties we have in your location.
List of Freehold Condo in Singapore
Amber Skye @ D15
Amber Road opposite MRT
1BR $1.2m - 635 sqft
2BR $2.3m -990 sqft
Rise @ Oxley D9
3BR $1.7m - 646 sqft
2BR $893k - 689 sqft
3BR $1.31m - 915 sqft
12 on Shan D12
2BR 678 sqft
3BR 872 sqft
Robin Residences D10
2BR $1.596m - 710 sqft
2BR Premium $1.983m - 850 sqft
3BR $2.5m 1066 sqft
Forte Suites D8
88 Mergui Road
2BR $1.02m - 678 sqft
3BR $1.29m - 624 sqft
Gramercy Park D9
2BR 1,206 - 1,314 sqft
3BR 1,884 - 2,218 sqft
Leedon Residences D10
2BR $2.5m - 1,044 sqft
3BR $5.9m - 2,110-2,131 sqft
183 LongHaus D20
Upper Thomson Road
3BR from $1.52m - 775 sqft
Singa Hills D14
1BR $730k - 463 sqft
2BR $870k - 667 sqft
Spottiswoode Suites D2
Spottiswoode Park Road
1br+s $1.04m 463 sqft
3BR $1.689m 797 sqft
2BR $1.69m - 883 sqft
3BR 2.5m - 1,281sqft
Adana @ Thomson D20
Upper Thomson Road
2BR from $920k onwards - 560 sqft
3BR from $1.17m onwards - 721-974 sqft
Liv on Wilkie D9
1BR $1.1m onwards 463 sqft