what are the dissadvantages of buy ing leasehold
| # | Post |
|---|---|
| 1 | What are the disadvantages ? luigi21 - 2020-12-29 13:42:00 |
| 2 | Ground rent. vivac - 2020-12-29 14:54:00 |
| 3 | uncertainty of resale values sparkychap - 2020-12-29 14:56:00 |
| 4 | Capital gain is on the land which you don't own. owen106 - 2020-12-29 14:59:00 |
| 5 | uh ok just was wondering that's all ,thanks for any ideas anyway.cheers luigi21 - 2020-12-29 16:37:00 |
| 6 | Sudden rise in the price of yearly lease eg when it resets every 25 years it jumps to match the current market price. sweetgurl108 - 2020-12-29 17:21:00 |
| 7 | Luigi21 if you are knowledgeable and reasonable about leasehold and investigate the lease document thoroughly then I would not be put off buying a leasehold property. NZers are generally lacking in knowledge about leasehold, pay the same amount for a leasehold property as they do for a freehold one when in fact there should be a difference that recognises the leasehold tenure. (this practice is/was particularly rife in some of the 'better' Auckland zones where buyers failed to factor in a difference for leasehold.) Many leases have now got 11 yearly rental rests but even if they do not it is relatively easy to make sure you are not caught out in the latter years of a 33 year lease, even easier with the leases with more regular reviews Any capital gain is yours.....there is no sharing arrangement with lessors for ordinary urban dwellings. The uncertainty has been initiated in large part by buyers paying over the odds for a leasehold property as compared to a freehold one. In places like UK there is a greater awareness of the difference in the tenures, practically the whole of the inner part of London is leasehold with various sub leases. I have not noticed that London has been held back because of leasehold. In areas where there are both leasehold & freehold available there is a definite difference in price between the two. shanreagh - 2020-12-29 18:01:00 |
| 8 | I wouldn’t touch one with a 10 foot barge pole. I would rather live in a car. lakeview3 - 2020-12-29 21:13:00 |
| 9 | disuss with your real estate agent and/or your lawyer. It is their job to tell you. spead - 2020-12-30 08:23:00 |
| 10 | mrcat1 - 2020-12-30 08:32:00 |
| 11 | http://www.savecornwallpark.com/swine mrcat1 - 2020-12-30 08:36:00 |
| 12 | Learn from Christchurch https://tinyurl.com/y66bwmnl ttaotua1 - 2020-12-30 09:02:00 |
| 13 | lakeview3 wrote: gph1961 - 2020-12-30 11:14:00 |
| 14 | As a rule can't be financed hence they are cheap. Body Corp and ground rent hellishly expensive, personally a big no. jeffqv - 2020-12-30 11:52:00 |
| 15 | jeffqv wrote: shared driveways - another thing to avoid if possible. lakeview3 - 2020-12-30 11:54:00 |
| 16 | gph1961 wrote: lol, no need thanks, but if I ever did decide to sleep in my car, it’s plenty big enough. lakeview3 - 2020-12-30 11:54:00 |
| 17 | spead wrote:
Your real estate agent? johnston - 2020-12-30 13:25:00 |
| 18 | johnston wrote: I got one for Christmas. sparkychap - 2020-12-30 13:34:00 |
| 19 | sparkychap wrote:
I saw it listed on Trademe as an unwanted gift. johnston - 2020-12-30 14:57:00 |
| 20 | THE BIGGEST DISADVANTAGE OF ALL.As your Bank cannot get Title to Register the Mortgage against the property they will not lend. axelvonduisberg - 2020-12-30 15:29:00 |
| 21 | axelvonduisberg wrote: Sorry mate, not correct. There is generally a title against which interests such as a mortgage can be registered. The key issue is that the value of the asset can fall considerably, normally just before the land rent review, or after it should the review be unexpectedly high. Lenders DO lend against leasehold property, but often only for short terms and with a low LVR and with plummeting values for certain ones (like Auckland CBD) are currently pulling back. sparkychap - 2020-12-30 15:43:00 |
| 22 | Leasehold can work OK for a rental as the ground rent is a deductible expense. Needs a more serious risk assessment than other land tenures. artemis - 2020-12-30 15:56:00 |
| 23 | artemis wrote:
I agree, seen a few 'older' people with cash and looking for yields over capital gain go for leasehold apartments. Also seen a couple of businesses buy in Princes Wharf as an Auckland office, loan secured against their o/occupied elsewhere. jeffqv - 2020-12-30 21:12:00 |
| 24 | I'm living in a rental in Auckland which is in a block of four units. My landlord tells me it's a leasehold property, so I guess he must be profiting from the rent. I personally would find the prospect rather daunting... https://www.nzherald.co.nz/business/mary-holm-the-high-risks zyx2004 - 2020-12-31 01:20:00 |
| 25 | jeffqv wrote: Very helpfull.Many thanks all you've all been great. Cheers. luigi21 - 2021-01-01 10:28:00 |
| 26 | Fee simple or nothing is my rule. The whole point of home ownership is breaking away from being someone else's bitch IMO. Cross lease, shared driveway, body corp etc is like having a ball & chain wrapped around your ankle comparatively speaking. Edited by steve198 at 9:04 pm, Fri 1 Jan steve198 - 2021-01-01 21:03:00 |
| 27 | steve198 wrote: apollo11 - 2021-01-01 21:13:00 |
| 28 | I've found the worst thing is not knowing what the increase will be at the end of the term (500% last time) and that you get stung legal fees as well. It was much harder getting a mortgagexas some banks wouldn't touch it. Rates are assessed on a freehd value, not a leasehold value. Peopke will still buy them in Napier as the housing shortage is so bad. redden39 - 2021-01-02 23:03:00 |
| 29 | Leasehold is great for investment properties, 100% depreciation and you get a rebate on the ground rent. mopeds - 2021-01-02 23:14:00 |
