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|Value of the property
Freehold properties have greater appreciation in value in the long run.
Prices might be less than or equivalent to comparable freehold properties during the first 20 to 30 years. But:
1. the value of leasehold properties usually depreciates over the years as the lease period comes to an end.
2. the uncertainty about obtaining an extension or renewal of lease often reduces marketability of the property.
|Rental Yield of the property
|Lower as compared to leasehold properties mainly because of the higher entry cost.
Higher as compared to freehold properties because:
1. the entry cost is generally 20% lower than for equivalent freehold properties
2. property developers usually offer more facilities, features and incentives for leasehold properties to remain competitive in the market
|Ease of selling the property
Transaction is easier and straightforward. Sale of freehold properties will generally take 3+1 months to complete, as stated in usual S&P agreements.
|Buying and selling a leasehold property takes a longer time because state consent and approval is needed.