The Pros and Cons of Freehold Properties
If you are looking to buy property Dubai, you must understand the pros and cons of it. You can also get villas for sale in Arabian ranches.
Pros of Freehold Properties
Complete ownership:
The best advantage of having a free whole property is suffering that you get complete ownership and control of your property. Having the freedom to modify, sell or use your property however you like without any legal trouble is often seen as the best advantage of having a freehold property.
Long term investment:
Many holders of a freehold property consider it as a long term investment as it can be inherited by future generations of your family and can also be seen as a legacy in your family.
Cons of Freehold Properties
Higher initial cost:
The upfront cost of freehold properties compared to leasehold properties are often higher which makes them out of range for some buyers.
Maintenance cost:
At the only owner of a property, you are held accountable for handling all the maintenance and expenses regarding repairing, furnishing and painting etc which can cost a small fortune for larger properties
Landlord responsibilities:
If you are an owner of a freehold property and have decided to rent it to someone or turn it into a compound then the residents can be held accountable for the maintenance of common areas and services but for the larger renovations, services or maintenance it might end up as an additional cost on you.
The Pros and Cons of Leasehold Properties
Pros of Leasehold Properties
Lower initial cost:
If you want to buy a property but don’t have enough money or a tight budget to be buying a freehold property, then a leasehold property is the best option for you, as the initial cost required to buy a leasehold property is far lower than buying a freehold property.
Investment opportunities:
For investors who are looking to get rental income, leasehold properties are the best option for them as they often come with beautiful rental yields making them look better in the sight of possible renters which can be a profit to investors, as they can increase the price of the rent simply based on the garden or field located in their property.
Cons of leasehold properties
Limited control:
One of the worst cons of having a lethal property is that you share control of your property with other investors as well, meaning you are only limited to some control over the property unlike freehold properties in which you have full control over the property.
Lease renewal cost:
The ownership of a leasehold property works in periods meaning that if your lease period has expired, then you have to pay leaves renewal which can cost a lot depending on the area of the property and the amount of time you want to own the property for.
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