CondoFreehold vs Leasehold: Can You Really Prove Which Is Better? (Part 1)

  • by
  • March 15, 2020
  • 8 min read

Sean

Sean has a writing experience of 3 years and is currently with Stacked Homes focused on general property research, helping to pen articles focused on condos. In his free time, he enjoys photography and coffee tasting.

avatar
Selena
Selena

It’s a known fact that leasehold properties have better rental yields, but the real question is – at what age should would the tradeoff between getting a high rental yield, and losing your capital due to higher depreciation become too much?

Stacked Homes
Stacked Homes

Hi Selena, yes there is a tradeoff here as you mentioned, so it really depends on your goals when purchasing a leasehold property. Generally, properties that hit the 20-year mark will start depreciating at a much faster rate. Further on, there are restrictions for certain buyers when it comes to using your CPF – hence a smaller buyer pool out there. So if one if purchasing a leasehold home with an intent to sell, it’s best to purchase a relatively new one.

Read next from Condo

Latest Posts