Why Freehold Is Not Always The Best Option When It Comes To Property Investment
Updated: Jan 15, 2019
Why Freehold Is Not Always The Best Option When It Comes To Property Investment
For property investment, there are some unwritten “Rules” that seem to guide certain decisions and market movements.
These “Rules” resulted from certain “Beliefs” that might have been self-taught or hearsay.
BUT Are These “Rules” Still Relevant Today?
In this era, – changes happen very fast. Many things had changed, Government policy, market sentiments, global economies, interests rates. All these affect the prices of properties.
In the past, I used to advertise my listing on papers, it works at that time, however, now I chose to portray my listings on social media and portals, using video contents as much as possible. We need to keep ourselves updated.
I am going to share with you some beliefs that some people might have and go against them.
Facing these new situations, how would you respond?
In this Blog, I am going to present to you TWO outdated property investment Myths.
Myth no 1 ：Freehold Is always Better Than Leasehold
With the recent debate on HDB's 99 leaseholds, we are sure freehold got to better than leasehold?
It is still relevant! It's True!!
I see these words flashing across your head even as you read this.
But I an agent for many years, I am experienced. I am on the ground everyday, I see transactions everyday, I have access to premium data that most normal people do not have.
You can see that PSF pricing has declined due to some permanent ownership development. Why?
Because when the owner buys at a peak price, this leads to a reduction in transaction volume, which causes the development price to stagnate because no one wants to sell at a lower price and lose money.
However, if you are looking for long-term real estate investment, then the freehold property is still the best choice.
But if you are looking for a new 99-year rental property between 3 and 8 years, it might be a better option.
Myth no 2 : Better near the MRT
Developers always want to choose a MRT station to be close to their development in their sales promotion.
This is real! There is usually always a bonus point near the subway station.
However, it is not always so close to the MRT that your hotel will appreciate it.
In fact, no one has a perfect understanding of Singapore's real estate market. You really need to know more about it and look at charts and so on. But as we progress, we gain more insights and we are able to find top investment properties that actually raise a lot of cash for you.
There may even be slight errors.
People can easily say that the performance of the new property is much better than the old house. This is common sense - but we are talking about real estate investment here, whether it is new or old development, it doesn't matter, its yield is very high. important.
I have helped countless clients earn millions of dollars through real estate investments. Are you keen to have one now? Call me!