A lot of people usually prefer condominiums because they’re not ready to build or start a house yet. This is mostly true to those single adults or those who’ve just started with their relationships. Condominiums aren’t as expensive as buying a house and lot right away, and as small families would need to stay somewhere between the time period that they save for a house, then condos are the second choice.
So far, condominiums are classified into leaseholds and freeholds, in which the main difference is the number of years you own them: leaseholds for the number of years stated in the contract like 30, 60, or 99 years, while freeholds basically means forever, as long as no problems arise.
If you’ve been unit-hunting these past few months, you’ve most likely searched about freehold properties, specifically freehold condominiums. But before you start getting all excited about buying a unit in one, it would be in your best interests to know the features in freehold condominiums and the cons of what you’re getting into.
You get to own the land for an infinite number of years
Unlike leasehold properties, freehold condominiums, as you’ve probably heard, don’t limit your ownership to a certain number of years. This is perfect for those who plan on settling down in Singapore, or as we call it, establishing a ‘base’. You don’t even need to force your children to stay; the main point is, at least, when they’re at their lowest or would want to come ‘home’, then they’d have a home to go to at the end of the day. This is a feature that’s unique to freehold properties and condominiums, because other tenures are leaseholds, which can be from 99 to 999 years.
But, you’d have to take into consideration that it’s a condominium, which means you’ll be sharing ownership with plenty other people. If there are some instances that a government through Land Acquisition Act or a private company would want the land, other people might also want to sell their shares and you would have to go along with the majority’s decision. But basically, as long as the government doesn’t demand that you leave your place, you can have the spot you bought for as long as you want.
You get to own everything in the land
Another unique feature in buying a unit in a freehold condominium, you not only own the unit but also the land of the condominium and everything inside the land. This means, especially if you’re one of those who love to customize stuff, you get to design or alter the exterior and interior parts of your unit. You can also buy your own decoration and appliances like additional air conditioners or getting a mini-garden.
Of course, you’d also have to shoulder your own revision costs. As for the monthly or annual maintenance costs of the structures inside the building, like maybe for parking lot or the pool, this is divided among you and your neighbors in the condo, after all, everyone uses them one way or another. But, if you’re not one who usually frequents a pool, although that would be a waste, then having to pay for it would be slightly unfair, which is why you would really have to experience all the amenities provided. In short, everyone has to pay for joint properties and it’s a ‘to each their own’ when it comes to unit modifications.
The corporation responsible for the condominium still has a strong hold over what happens in the place
So if you and your neighbors suddenly decide to set up a gym, then you would have to wait for the approval of the corporation. They would also have to be the one to set up the place, manage the construction, and more, while the bunch of you would just have to pay.
Actually, this is dependent on the contracts that you would sign once you finally buy the unit, so you definitely should inform yourself ahead. Each condominium corporation determines their contracts, so expect them to have slightly different terms and make sure to read it.
Location is the most important key in buying units in freehold condominiums
To every single housing or land property. A lot of us tend to associate higher price to higher market value, which is sometimes true, but it actually also takes into consideration the place of where it is. Places at the ‘high-end’ would have higher prices, while those in the not-so-good neighborhoods are priced lower. So make sure to check the conditions of the place where you think you’re gonna be living in for a really long, long time.
Freehold condominiums have a lot of advantages and disadvantages. It is a must for a first-time buyers to be really careful with deciding where you’d want to live. If ever you’re really continuing with a freehold property, then you should make sure to read the terms and conditions to guarantee a secure and a hassle-free future.
