Freehold or Leasehold Property. Featuring The Arcady
Q: What are the main differences between freehold and leasehold properties?
A: The primary distinction lies in ownership duration. Freehold properties can be owned indefinitely, allowing the owner to pass it down through generations. In contrast, leasehold properties are owned for a fixed term, typically 99 or 999 years, after which ownership reverts back to the state. This difference in tenure can impact market value and investment decisions, as freehold properties often command higher prices due to the perception of long-term ownership.
Q: Are freehold properties always a better investment than leasehold properties?
A: Not necessarily. The specific value of a property is greatly influenced by its location. A leasehold property in a prime area, such as the Central Business District, may hold greater value than a freehold property in a less sought-after location. See The Arcady Map.
Q: Can freehold properties be taken back by the government?
A: Yes, even freehold properties can be acquired by the government under certain circumstances. While owners are generally compensated at market value, freehold status does not guarantee perpetual ownership.