Friday 19 September 2014

Is leasehold or 99-year leasehold better for you? - SRX

SRX Property data allows us to establish the Land Tenure Rule for Investing in Singapore Property.  The rule states that, in general, freehold condominiums are more expensive than 99-year leasehold condominiums and they tend to underperform in gross rental yield.   When it comes to capital appreciation, it is a mixed bag.
The Land Tenure Rule means that it may not be worth paying a large premium for a freehold condominium if you do not plan to live in the home for a long period of time.  The rule also suggests that if you are a landlord, go 99-year leasehold.

Source: SRX (09 Sep 2014)