Freehold property (here, Freehold Condominnium) has always been an essential factor for astute investors and has remained so till date due to its unique set of advantages.
Regarding real estate investments, there are many choices, each with unique advantages and drawbacks. In this article, we will explore the top three reasons why Freehold Condominiums have become the go-to choice for discerning buyers and investors—and shed light on their superior attributes that make them a secure and lucrative investment. Plus, we’ll look closer at The Continuum in District 15, a remarkable Freehold Condominium that exemplifies these benefits and why it should be on your radar.
Perpetual Ownership: A Shield in Economic Storms
One of the foremost reasons to consider Freehold Condominiums is the concept of perpetual ownership. This single factor alone can make a difference, especially in uncertain economic times.
The Safety of Permanence
Freehold properties offer something that leasehold properties can’t match – safety from lease decay issues. Freehold Condominiums stand solid and resolute in an economic downturn or when the real estate market takes a hit. Unlike their leasehold counterparts, they don’t face the looming threat of leases expiring, which can significantly impact property value and the ability to sell.
The Economic Resilience
The resilience of Freehold Condominiums extends further. Freehold properties remain an attractive choice for investors and buyers during financial crises or market volatility. Their value holds steady, making them a safer bet when the economy faces turbulence. Freehold ownership is akin to a financial fortress that can weather the most potent economic storms.
As shown in the chart below, comparing the price trends of resale Freehold and leasehold condominiums over the past 15 years reveals an intriguing story. Freehold properties have experienced only two downtrends compared to the three downtrends experienced by the leasehold market (see chart 1). This analysis even includes brand-new leasehold properties known for their initial years of better capital appreciation.
Chart 1: Number of downturns experienced by Freehold and Leasehold Resale Private Condominium
Freedom from CPF Constraints
Freehold Condominiums offer something often overlooked but can be a game-changer in property investment.
Overcoming CPF Limitations
When purchasing a leasehold property, the amount of CPF that can be utilized for the purchase or the loan quantum that can be secured is heavily influenced by the buyer’s age and the remaining lease of the condominium. This constraint can be a roadblock for many, particularly younger buyers. However, Freehold properties eliminate this restriction, opening doors to a more extensive pool of potential buyers. This, in turn, translates to an easier exit strategy for sellers.
A Vast Market
The absence of CPF limitations transforms Freehold Condominiums into a lucrative investment opportunity. The broader market of potential buyers makes selling your property a smoother process. It also means you can target a more diverse range of buyers, from seasoned investors to first-time homebuyers.
Table: Maximum amount of CPF savings that you can use for your property
Legacy Planning and Exclusivity
Freehold Condominiums have an undeniable allure for the elite and those with a long-term vision.
The Ultra-Rich’s Preference
These properties are highly sought after by the ultra-rich, who recognize the value of owning a piece of real estate that can be passed down through generations. Freehold properties offer a legacy planning opportunity that leasehold properties cannot match. With ultra-rich individuals joining the pool of buyers, the prices of Freehold properties often surge higher than their leasehold counterparts.
A Lucrative Investment
Freehold Condominiums are the way to go if you’re looking for an investment that provides financial security and promises substantial returns over a long investment horizon. The exclusivity and perpetual ownership translate into a premium investment, where your property’s value can be appreciated significantly over time. When we delve into the capital appreciation of Freehold versus leasehold properties, Freehold has consistently outperformed its leasehold counterparts regarding average price per square foot (PSF) (see chart 2). This effect becomes even more pronounced when we examine developments that are ten years old or more (see chart 3).
Chart 2: Price trend of Resale Freehold Condo vs Leasehold Condo
Chart 3: Price trend of Resale Freehold Condo vs Leasehold Condo (10 years and older development)
The Freehold Condo in District 15: A Smart Choice
As highlighted by various real estate experts, one of the most compelling arguments in favour of Freehold Condominiums is their performance over time. When comparing properties aged five years and above, Freehold properties have consistently outperformed their leasehold counterparts.
In District 15, a standout Freehold Condo has been the town’s talk – The Continuum. This brand-new Freehold Private Condominium development redefines luxury living and financial security. Over the years, Freehold properties in this district have proven to be a wiser investment, offering more substantial returns, even in relatively short timeframes. This makes Freehold Condominiums in District 15 a preferred choice for investors looking to hedge against unforeseen risks, especially during economic downturns.
When you invest in The Continuum, you’re not just purchasing a property but embracing a lifestyle marked by sophistication, exclusivity, and enduring value. Our experienced team can guide you through every step, ensuring you make the smartest investment for your future.
So, why wait? The Continuum at District 15 could be the key to unlocking your financial future. To discover how The Continuum can be the right choice for you, talk to us today and let’s embark on this exciting journey together.