09/10/2024
๐ฌ๐ผ๐๐ฟ ๐๐ฟ๐ฒ๐ฒ๐ต๐ผ๐น๐ฑ ๐ฝ๐ฟ๐ผ๐ฝ๐ฒ๐ฟ๐๐ ๐ฏ๐ฒ๐ฐ๐ผ๐บ๐ฒ๐ ๐๐ต๐ฒ ๐ด๐ผ๐๐ฒ๐ฟ๐ป๐บ๐ฒ๐ป๐'๐ ๐ฎ๐ ๐๐ต๐ฒ ๐ฒ๐ป๐ฑ ๐ผ๐ณ ๐๐ต๐ฒ ๐ฑ๐ฎ๐!
35 years of hard work and finally you paid off the leasehold property you signed up years back, then it becomes the government's asset. Yup, our grandma grandpa told us this. Most of us were educated with this norm when comes to buying properties, but is that always the case?
Freehold means ownership-forever right? Well, this is the main misconception among people at most of the time. Whenever the government eyecatch the freehold land where your property is in it for public development such as public transport or public common area they can still regain it under malaysia law (Land Acquisition Act 1960) by paying a compensation to you whether you agree or not.
Remember Ampang Park Mall in KL? it is a Freehold Land and was reacquired by the government for MRT development.
Now, when comes to Leasehold wouldnt it be dangerous when the property you bought is far easier for goverment to take over? Yes, when the 99 years tenure is over and the state /local authority decline your renew of the land/property then the inital lease contract ends and you have to hand over the land/ property, but on the probability how many condos face this?
On the government's perspective particurlary on cost measure, is demolishing a lower building or high rise building use lesser cost and time? In demolishing a buliding especially high rise, a most effective and efficient method is desctruction from the inside, which explosion is made to the core sturcture of the building then the building collapse vertically. However building parts would still flies and pop out causing damage in the vicinity of the area. This method is not abnormal at other countries but not in Malaysia as the landscape is different.
The alternate way is to demolish the condo floor by floor starting from the top involving renting tower crane, using wrecking ball means more manpower as these requires human operation. Hence, to demolish a condo involves higher cost in terms of money and time. So it very low in chance your leasehold condo is used by government for development.
Of course, there are some other cons of leasehold property but mainly procedural aspect which is not the main focus in this article i.e ,longer time for sale and purchase transaction as you are required to get the state consent's to sell of your leasehold property. The discussion in this article is soley on the ownership danger misconception most people have on their property.
In Malaysia, the major properties in prime location are leasehold and they are at least 30% lower cheaper compare to freehold properties. For investors, 30% cheaper means 30% lower entry cost and thus higher Return of Investment (ROI) ! (also depends on some other factors). But at least for the ownership part, its almost no different from Freehold condos. So if your concern is on this aspect, why not Leasehold ?
*๐๐ช๐ด๐ค๐ญ๐ข๐ช๐ฎ๐ฆ๐ณ : ๐๐ฉ๐ช๐ด ๐ข๐ณ๐ต๐ช๐ค๐ญ๐ฆ ๐ธ๐ข๐ด ๐ธ๐ณ๐ช๐ต๐ต๐ฆ๐ฏ ๐ช๐ฏ ๐ฎ๐บ ๐ฐ๐ธ๐ฏ ๐ฑ๐ฆ๐ณ๐ด๐ฐ๐ฏ๐ข๐ญ ๐ค๐ข๐ฑ๐ข๐ค๐ช๐ต๐บ ๐ธ๐ฉ๐ช๐ค๐ฉ ๐ฅ๐ฐ๐ฆ๐ด ๐ฏ๐ฐ๐ต ๐ค๐ฐ๐ฏ๐ด๐ต๐ช๐ต๐ถ๐ต๐ฆ ๐ข๐ด ๐ฑ๐ณ๐ฐ๐ง๐ฆ๐ด๐ด๐ช๐ฐ๐ฏ๐ข๐ญ ๐ข๐ฅ๐ท๐ช๐ค๐ฆ
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