Freehold vs Leasehold In Sabah

 


Freehold vs Leasehold in Sabah - Which one is better? 





If you're buying a property, you will hear the name of this term, whether it's freehold or leasehold. What's the difference? 

The truth is ... both have pros and cons. What’s “better” depends on your goals, budget, and future plans.

Now, let's talk about the different!


Table 1


In terms of ownership, for freehold, you own the property and the land indefinitely, but for leasehold, you lease the property from the state for a fixed term (often 99 years in Sabah). Both have their own advantages (refer to Table 1).


For Freehold, it is best for Long-term investment, family homes, or passing property to the next generation while for Leasehold, you need to take a few considerations:


  • Renewal cost when lease expires

  • Slightly harder to sell near lease end
  • Some banks may have stricter loan terms for short leases

Sabah Specific Factors to Consider


  1. In Sabah, certain rural and native lands have restrictions, so freehold might not be available to all buyers.
  2. Tourism and agriculture projects in rural Sabah may still be profitable even if leasehold, as this is due to high short-term ROI.
  3. Freehold properties in prime areas like Kota Kinabalu, Penampang, or KK outskirts are limited, meaning the prices can appreciate faster.

So, here's a quick decision guide:


Table 2


In conclusion, if you want permanent ownership and long-term security, consider opting for a freehold.

If you want lower cost and high rental returns in the short term, a good leasehold property can still be a great investment.


Your best choice depends on your investment strategy and lifestyle needs. We can ensure you to make an informed decision that benefits you now and in the future. Need a further consultation? Contact us, Jesselton Property.




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