Purchasing a home is a major investment. Therefore, just like any other asset, it is crucial to thoughtfully compare your options before making this significant financial decision. For property owners in Singapore, it is important to understand the difference between freehold and leasehold properties. In this article, we examine the differences between these types of homes to help prospective buyers make an educated decision.
What Is the Difference Between Freehold and Leasehold Properties?
Before we get to the nuts and bolts of this subject, let’s begin by understanding what ‘freehold’ and ‘leasehold’ mean in Singapore. With a freehold property, the owner can retain ownership over an indefinite period. It is because of this perpetual ownership that many home buyers and even property investors seek to acquire such properties despite their hefty price tags. With leasehold, the owner can only claim ownership for a fixed period (typically 99 years or...