Freehold vs. 99years

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22-01-09, 13:03
1110

Freehold vs. 99years

Hi all,

I am new here, just curious on what is the difference between a freehold unit compared to a 99years unit?

Does it mean that a 99years old unit on reaching 99years old become zero value?

Kindly enlighten me.

Thanks....
22-01-09, 19:38
Geylang OKT

Quote:

Originally Posted by 1110

Hi all,

I am new here, just curious on what is the difference between a freehold unit compared to a 99years unit?

Does it mean that a 99years old unit on reaching 99years old become zero value?

Kindly enlighten me.

Thanks....

Theoretically yes... but hopefully b4 that some developer will come and enbloc your project :D
22-01-09, 21:54
isaaclim

Quote:

Originally Posted by 1110

Hi all,

I am new here, just curious on what is the difference between a freehold unit compared to a 99years unit?

Does it mean that a 99years old unit on reaching 99years old become zero value?

Kindly enlighten me.

Thanks....

Theoretically Yes. But it will not going to happen in Singapore unless it is DOOM DAY. During DOOM DAY, what is FREEHOLD? For ghost ah!
22-01-09, 23:43
Geylang OKT

Of course, in a falling market (like now), 99LH will nose dive like there is no tomorrow :D
23-01-09, 07:19
isaaclim

Correct. But why sell during this period? So, if you are financially sound, 99 and FH is the same. In fact, 99 is a cheaper option with better locality. Because it does not have a document sign by XXXX up british!
23-01-09, 09:34
1110

Quote:

Originally Posted by isaaclim

Correct. But why sell during this period? So, if you are financially sound, 99 and FH is the same. In fact, 99 is a cheaper option with better locality. Because it does not have a document sign by XXXX up british!

So what I get from the two expert's replies is that it is perfectly safe to buy 99yrs unit. But how about loan?

I heard ppl saying that if your unit is 99yrs more than 15years old, the bank will not want to lend you.... Is it true? Anyone encounter such a scenerio before?

thanks...
23-01-09, 09:55
Acer

Quote:

Originally Posted by 1110

So what I get from the two expert's replies is that it is perfectly safe to buy 99yrs unit. But how about loan?

I heard ppl saying that if your unit is 99yrs more than 15years old, the bank will not want to lend you.... Is it true? Anyone encounter such a scenerio before?

thanks...

if for own stay 99 yrs, FH or 999 don't make a different
If for investment, FH and 999 is better

Eg.. u buy a 99 yrs
and it has already 30 yrs old
mean the balance is 69 yrs.
The bank will only loan not more than the flat balance age.

That's why some old terrance house left 15-20 yrs old. The bank only can loan to whichever shorter. Buyer need to come out more cash.
23-01-09, 10:01
isaaclim

Quote:

Originally Posted by Acer

if for own stay 99 yrs, FH or 999 don't make a different
If for investment, FH and 999 is better

Eg.. u buy a 99 yrs
and it has already 30 yrs old
mean the balance is 69 yrs.
The bank will only loan not more than the flat balance age.

That's why some old terrance house left 15-20 yrs old. The bank only can loan to whichever shorter. Buyer need to come out more cash.

Not true. Completely the opposite.
For own stay, FH is better then 99 yrs. For investment, location is the only factor.

Furthermore, the maintenance cost for a property shot up exponentially after certain age.. which would make it too costly to maintain.

FH is just more attractive for a developer to en-block. But it not necessary commanding high premium.