Entry Poyo

Tetiba hari ni rasa nak tulis something yg sedikit ilmiah. Sekali sekala nak me'refresh'kan ilmu yang aku belajar masa kat universiti dulu ditambah dengan pengalaman kerja aku sekarang ni. Kalau orang lain tak nak baca takpelah, aku anggap ajelah entry ni buku nota kuliah aku.

Untuk kekawan yang nak beli rumah atau tanah, eloklah baca. Sedikit banyak boleh dijadikan panduan. Bulan puasa ni aku nak jugak menyumbangkan something kepada kekawan semua....apa salahnye berkongsi ilmu, coz sharing is caring.

Freehold vs leasehold

THE land laws of Malaysia are governed by the National Land Code, 1965 (Act 56 of 1965). Section 40 of the National Land Code, 1965 states that all state land belongs to the state authority. State authority may disposed off state land to an individual as :

FREEHOLD TITLE - in perpetuity for an indefinite period.
LEASEHOLD TITLE - for a term of years, by virtual of law, not exceeding 99 years.

For Leasehold title, upon expiry of the period of the lease, the land should be reverted to the state authority. The owner will then have to either apply for a renewal of the lease before its expiry or apply for a fresh alienation if the lease has expired. These will involve the payment of a hefty premium which would be close to buying the land all over again with perhaps some discount.

----------------Differences between leasehold and freehold.---------


Anyway, if there's an option between leasehold and freehold, my advice,better go for freehold because it is much more secured but if there's no options, then just go on with leasehold coz by the time you wait for that perfect freehold property, time has passed you by.(Harga rumah makin naik tahun ke tahun tau, naik bukan sikit2. Dalam masa setahun, puluh2 ribu beza)

The disadvantage of the leasehold property are as follows:-

1) Many consents to be obtained from relevant authorities especially for transfer;
2) Difficulty to surrender for the purpose to extend or renew your leasehold tenure;
3) High premium to be charged for renewal or fresh alienation by state authority if the lease has expired - it's base on current market value, i.e. PJ old bungalow, RM20-24 per square feet;
4) Difficulty to finance / get a loan from a bank if your leasehold tenure is less than 30 years left(to apply for strata titles - the leasehold tenure is not less than 21 years left);
5) Depreciation in the value of your property over time as the leasehold tenure is getting short.

Around Klang Valley it's getting harder to find good, new freehold property or there are ridiculously expensive these days. Here some of ongoing housing project with freehold title:

- Putra Height, USJ
- Bandar Bukit Puchong 2, Puchong
- Bandar Kinrara, Puchong
- Alam Sari, Bangi
- Alam Impian, Shah Alam

Remember, leasehold expiring is a certainty and who knows if they wil renew or how much it will be to renew the lease. For those who buying property for investment, pls bear in mind, leasehold tenure will always decrese the selling value of some properties.