What is the difference between leasehold and freehold tenures?
When state land is disposed off by the state authority to an individual in perpetuity for an indefinite period, this land is now granted as freehold title.
When the state land is disposed of by the state authority to an individual for a term of years, by virtual of law, not exceeding 99 years, this land is now granted as 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.
(1) Leasehold
(a) Land uses:
Lease duration usually 30, 60, 99 or 999 years.
Limited by purpose of lease and land legislation.
Stocking levels, cultivation, etc may be restricted by lease conditions.
Limited by environmental and town planning controls.
(b) Duty of care:
High level of duty of care defined in land legislation.
May be responsible for developing and maintaining improvements.
May be required to engage in property planning.
(c) Transferability, aggregation and subdivision:
Lease transfers require State or its equivalent's approval.
(d) Retrieval/resumption:
Powers to acquire leasehold interest or withhold land when lease expires.
(e) Security of tenure:
Varies according to lease type but forfeiture for non-performance may be possible.
(2) Freehold
(a) Land of uses:
Limited by environmental and town planning controls
(b) Duty of care:
Duty of care following common law and as required by some Environment Protection Acts or its equivalent.
(c) Transferability, aggregation and subdivision:
Few limitations on transfer.
Unlimited right to subdivide and aggregate subject to town planning controls.
(d) Retrieval/resumption:
Some powers to acquire land for public works.
(e) Security of tenure:
Very high level of security.
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Wednesday, November 5, 2008
Tuesday, June 17, 2008
TIPS FOR BUYING A NEW HOUSE
For most people, buying a house would probably be the largest and most significant investment they will ever make in their lives. Althought a daunting task, prior research and preparation will help the prospective homeowner to reduce the anxiety level and prevent a post-purchase dissonance in teh very important decision.
These five important things would set the purchaser well on his way to owing a new home:
1) Am I financially prepared to purchase to purchase a home?
Purchasing a house is a huge responsibility and you have to ensure that you are financially, physically and emotionally equipped to undertake the task. It is a big first step. Signs that you are ready include a steady income for over two years, a good record of paying your bills on time, and not having too many large, long term debts.
Deciding how many you can afford for a new home can be tricky, especially since you have to take into account the interest and costs associated with a mortgage. A financial advisor or your local bank representative can assist you to determine your home affortability according to your current income, total expenses, the amount of money you can put down, and the loan terms you qualify for.
2) Which location should I opt for when purchasing a home?
When buying a home, it is imperative to live in a community that fits your lifestyle. Those looking for peace and quiet in a friendly environment might prefer a home in the suburbs, while those who enjoy the hustle and bustle of city life might find living in an urbanarea more appealing.
And in view of the increase in crime, homeowners are now more finicky about security and safety in a housing developement in order to have peace of mind. In fact, gated and guarded housing estates and condominiums with several tiers of securities are fast becoming popular and would usually command higher prices.
Equally significant when selecting the perfect location is the proximity to available amenities such as the wet market, schools, the post office, shopping malls, hospitals and transportation options. Also find out how the traffic situation is like in the area and wheather it would take you along time to get work. Taking these into consideration would not only make your stay in your new home a more enjoyable one, but also increase the property's resale value should you decide to sell it the future. That is important.
3) What is the role of a real estate agent and how do I find a good one?
The role of real estate or property agent is to guide you through the property buying process and helping you get the best deal possible. They would be able to assist you by giving you inside real estate and community information that can only strengthen or deter your decision to buy a home in a specific area.
Your property agent should typically be friendly, reliable and have the right credentials including a license, and an exclusive agreement with brocker. Property agents also have an extensive knowledge of properties available in the market, which allows them to keep an eye for properties they know will meet your requirements. To find a good property agent, ask for referrals from trusted sources such as family, friends and co-workers.
4) What should I look out for in a home?
Home viewing is one of the most important things to do when it comes to shopping for a new home, and unless you are extremely fortunate, you will probably spend a fair amount of time visiting many houses in search of that perfect property. It is advisable to make your visit during the day, and if posible, bring someone along with you, preferable someone with a sharp eye to spot things you may miss.
You should also make sure the size and space of the home is adequate for your immediate and future use. This applies especially to newlyweds and young couples who have plans to starts a family, and might be forced to search for a bigger home for extra rooms in the not-too-distant future.
5) Why and how I should insure my new home?
As your home is one of the largest financial investments you will make in this lifetime, it is vital that you take all the measures to protect it from any unforeseeable circumstances. Taking up a homeowner's insurance coverage can eliminate the financial risks involved with having to deal with these hazards. However, you must ensure that you are providing sufficient coverage to protect the value of everything you own in your home, and of course, the home itself.
These five important things would set the purchaser well on his way to owing a new home:
1) Am I financially prepared to purchase to purchase a home?
Purchasing a house is a huge responsibility and you have to ensure that you are financially, physically and emotionally equipped to undertake the task. It is a big first step. Signs that you are ready include a steady income for over two years, a good record of paying your bills on time, and not having too many large, long term debts.
Deciding how many you can afford for a new home can be tricky, especially since you have to take into account the interest and costs associated with a mortgage. A financial advisor or your local bank representative can assist you to determine your home affortability according to your current income, total expenses, the amount of money you can put down, and the loan terms you qualify for.
2) Which location should I opt for when purchasing a home?
When buying a home, it is imperative to live in a community that fits your lifestyle. Those looking for peace and quiet in a friendly environment might prefer a home in the suburbs, while those who enjoy the hustle and bustle of city life might find living in an urbanarea more appealing.
And in view of the increase in crime, homeowners are now more finicky about security and safety in a housing developement in order to have peace of mind. In fact, gated and guarded housing estates and condominiums with several tiers of securities are fast becoming popular and would usually command higher prices.
Equally significant when selecting the perfect location is the proximity to available amenities such as the wet market, schools, the post office, shopping malls, hospitals and transportation options. Also find out how the traffic situation is like in the area and wheather it would take you along time to get work. Taking these into consideration would not only make your stay in your new home a more enjoyable one, but also increase the property's resale value should you decide to sell it the future. That is important.
3) What is the role of a real estate agent and how do I find a good one?
The role of real estate or property agent is to guide you through the property buying process and helping you get the best deal possible. They would be able to assist you by giving you inside real estate and community information that can only strengthen or deter your decision to buy a home in a specific area.
Your property agent should typically be friendly, reliable and have the right credentials including a license, and an exclusive agreement with brocker. Property agents also have an extensive knowledge of properties available in the market, which allows them to keep an eye for properties they know will meet your requirements. To find a good property agent, ask for referrals from trusted sources such as family, friends and co-workers.
4) What should I look out for in a home?
Home viewing is one of the most important things to do when it comes to shopping for a new home, and unless you are extremely fortunate, you will probably spend a fair amount of time visiting many houses in search of that perfect property. It is advisable to make your visit during the day, and if posible, bring someone along with you, preferable someone with a sharp eye to spot things you may miss.
You should also make sure the size and space of the home is adequate for your immediate and future use. This applies especially to newlyweds and young couples who have plans to starts a family, and might be forced to search for a bigger home for extra rooms in the not-too-distant future.
5) Why and how I should insure my new home?
As your home is one of the largest financial investments you will make in this lifetime, it is vital that you take all the measures to protect it from any unforeseeable circumstances. Taking up a homeowner's insurance coverage can eliminate the financial risks involved with having to deal with these hazards. However, you must ensure that you are providing sufficient coverage to protect the value of everything you own in your home, and of course, the home itself.
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