All You Need To Know About Freehold, Leasehold And Bumiputera Lands.

By npadmin on August 15, 2017 in Tips and Hints

Some leasehold properties do gain more value than freehold ones during the early years.

When buying a property, should we go for freehold or leasehold?
This is the first question we often ask ourselves when considering a property.
Actually, does it even really matter?

What is freehold land?
In layman’s term, freehold land means the land is yours for eternity. Freehold seems to be the key word, the golden ticket when buying a property. Naturally, it is more expensive.

And a common myth is that the property will be untouchable. Not true.

If the authorities decide that a new development is necessary, they are allowed to acquire the land to build a new highway, new transportation system or any public projects.

Yes, it is true.

And, what about leasehold land?
Leasehold land means the land is leased from the government, typically with a maximum lease period of 99 years. Upon expiration, the developer or the owner can extend the lease and this will require a premium.

However, not all is bad for leasehold.

Some of the best locations in the Klang Valley are leasehold. Bandar Sunway, parts of Old Town PJ, Seputeh, Tropicana. You may notice that these properties usually even more awesome facilities and features to sort of “make up” for the leasehold status. They’re cheaper too!

Last but not least, Bumiputera land
As the name suggests, Bumiputera land is only open for sale or lease to just the Bumiputeras. They are inclusive of Malays, Sabahan and Sarawakians, and also non-Malay muslims.

So now, freehold or leasehold?
Apart from the land title, it is important to take other factors into consideration.

There may be a double-storey freehold unit in Bandar Country Homes, Rawang which costs about RM500,000 but is it convenient to your workplace?
That means additional daily expenses in fuel, toll and not to mention, the stress of commuting.

But if you only have to pay and additional RM500 in your monthly repayment for leasehold unit in Bandar Utama which is a stone’s throw away from IKEA, 1 Utama and strategically connected by LDP, Penchala and the MRT, and near your work place and the list goes on… does it still matter if it is freehold or leasehold?

Get hold of Nexproperty.
Let us show you the best locations. Discover your new home with us today!