When it comes to land ownership, you have the option to freehold or to lease. Before choosing freehold vs leasehold, it is essential to understand how each of them works. Land ownership in Singapore is a very sensitive matter.
If you are a foreigner who is planning to start a business, it is advisable to determine the right way to own land. The options are about choosing between freehold and leasing. It is essential to understand the conditions of the two types of ownership. Here is all you need to between freehold and leasing:
Freehold property means that you own the building and the land. In this case, you will be responsible for taking care of the property and also the land the property sits on. Buying property on freehold might be expensive because you have ownership not only to the property but also to the land. This is an excellent way to own property for long term purposes. However, you need to make sure that you are ready with your responsibilities.
Advantages of Freehold Ownership
No Lease Running Out
When you own land on a freehold title, you will be sure that you will own land for a long time. This is entirely different from leasing when you own the property for a limited period depending on the lease period. With freehold ownership, you can continue with your business without worrying about the lease running out.
No Dealing with Landlord
Owning land on freehold title is important because you do not have to deal with the landlord. Dealing with the landlord when running your business can be difficult. With freehold ownership, you can continue running your business without interruptions.
With freehold ownership, you only make one payment. You do not keep paying money to the landlord all the time like someone who is leasing.
Leasehold property ownership means that you own the property but not the land. In this case, you are required to pay lease payments to the owner of the property. In this case, you do not have to worry about maintaining the property.
The landowner will be responsible for maintaining the property. However, you can get a leasehold land when you are looking for a property within a short period. Leasehold land ownership is ideal for business owners who do not want to deal with maintenance and want something in the short term.