When you want to own property in Singapore, it is important to consider whether the property you are buying is a freehold or a lease. The main difference is the legal ownership of the property.
life estate
A freehold property means that the buyer owns the condo and the title to the condo. The buyer will only pay the mortgage and not a monthly rent. Freehold condos are more expensive than rentals, since you own the property for as long as you want.
Lease
There are several types of rental properties in Singapore: 99, 999 or 103 years. After the lease expires, the legal ownership of the property will revert to the government. However, the main advantage of this is that the price of the property is usually cheaper than that of freehold.
If your intention to buy a condo is to stay in it for at least ten to twenty years, you may want to consider a freehold condo. This will ensure that the value of the condo does not depreciate the longer you stay. You can also leave it to your children when you are older.
If you are primarily interested in capital appreciation and will be selling the condo in a few years, you may be better off buying the condo on lease as the initial capital outlay is less, allowing for more leverage.
Last but not least, always plan ahead and make sure you have holding power when prices start to drop if you are starting with small capital.