480 Toa Payoh Lorong 6 #10-01 HDB Hub East Wing Singapore 310480
3 Important Factors of choosing
Freehold Property:
LEGACY
LOCATION
SCHOOL
Why Legacy?
Let’s consider an example where a buyer purchases a property by taking out a 20-year loan and making a down payment of 25%. After the purchase, the property is rented out, and the rent received is used to pay off the mortgage. If there is any shortfall, the buyer will have to cover the difference.
This approach is often regarded as a way of saving money in the property, as demonstrated in the table below. Any rental income generated after the 20-year loan period is paid off will become the buyer’s long-term income, which can be passed down for generations. This is why wealthy individuals tend to favour purchasing freehold properties with the aim of leaving a legacy for their heirs.
Location
One crucial aspect to consider when purchasing a freehold (FH) property is its location. If a FH property is situated close to an MRT station, it offers a significant advantage, as only 13% of properties in Singapore fall under this category. Therefore, owning a FH property in close proximity to an MRT station could increase its value over time, due to high demand and limited supply.
Such a strategic location offers convenient access to transportation, making it a desirable choice for both investors and residents. This high demand can lead to a potential appreciation in value, which can offer long-term benefits for the property owner
Near to Reputable/
Renowned Schools
If you are a parent or expectant parent, consider the benefits of purchasing a property in close proximity to a reputable school that your children can easily attend. The desire to provide the best for our children is a natural inclination. Furthermore, if this property happens to be freehold, it would be an added bonus.
It is worth noting that freehold properties near reputable schools have been known to yield considerable profits. For example, as shown in the table below, one owner earned an astounding $800,000 in profit! Such properties are highly coveted and many aspire to own them. Thus, it is important to not only work hard but also work smart in order to attain financial success.
