Disadvantages of freehold property

Disadvantages

• You are responsible for the functioning and maintenance of the building and land.
• You have a responsibility to your local council and community to be a responsible homeowner. If the building falls into disrepair, you are too noisy, or your rubbish is a nuisance to the neighbours you are legally and financially obligated to take action.
• Buying a freehold property can in some cases be more expensive than buying a leasehold property.

A freehold property is one, where the owner/society/residents’ welfare association owns the building and the land that it stands on outright, in perpetuity. A freehold is generally bought through an auction or lottery. The completed project, thus, will include the cost of the freehold land incorporated in the final cost of the units.

Meaning of a freehold property is a property that is legally ‘free from hold’ of any entity other than the owner. 

The only disadvantage of freehold properties is that they are more expensive. Since an individual owns both, the land and the property, to have complete control over it, the cost incurred on it increases. Thus, such properties might be difficult to be purchased by individuals who are used to staying in flats or apartments, where they just own the property and therefore, pay a lower price.

Freehold land is costlier than leasehold land.

For freehold land you may need to pay more down payment for blocking the unit.

Regards,

Anaita Vas

Freehold property is definitely more advantegeous.