The choice between Freehold and Leasehold Condos are very difficult to make for many reasons. However, you need to bear in mind the factors that affect this decision and decide the best one for your individual circumstances.
There are several different lifestyle factors that can affect your decision of which of these two you wish to go for. As people’s lifestyle changes, it becomes important to take the time to consider this before you make a final decision. In this article, I will explain the main factors that influence your decision as to which you want to go for.
Cost – The cost of the house will be a major factor in your decision. So the more you spend the better. If you plan on having the same amount of income year after year then the choice is obvious and would be going for a leasehold.
Having your own unique atmosphere and being able to customize it as you wish is also important. If you live in the same property for many years then a freehold will not suit you well.
Prices will go up
How much the house will increase in value – This is a variable that depends greatly on the market value of your home. If you go for a Freehold then you can buy it at a lower price and sell it up to a higher price. Whereas if you go for a leasehold then the values will go down but the property can be sold up to the value of the property.
It is important to understand all of the different reasons why people choose these. When I started researching for this article I came across many reasons why people chose the different and they all revolved around the price. Let me elaborate further on this.
If you are someone who has a certain price for which they wish to sell your home then either a Freehold or a Leasehold will suit you perfectly. The main reason for this is because the house will increase in value as you wait for your desired number of years to pass. Once you sell, you can move on to a different property with a much larger value.
Freehold – People with homes that have an estate value of over 100K have been known to sell their homes for over 500K depending on their desire. Many of these are in prestigious and high-income neighborhoods, so it is not that rare. So depending on your own personal needs and the market value of your home you can sell for a large amount.
Leasehold – If you are in a situation where you are selling a home for a lower price then you should look into the option of a leasehold. This is not that popular for obvious reasons. The main benefit is that if you sell the property it will increase in value after the completion of the contract.
One of the problems is the standard of the house. Leasehold allows you to have a lower standard of the property as you do not have to get insurance for it. The final price will be more than you initially expected.
It is always essential to research the prices for both Freehold and Leasehold before you make your decision. You need to ask yourself several questions and make sure that you know what your own personal needs are. These are just a few reasons why people choose which is the best option for them.