Leaderboard

Dear all, 1. In this write-up, for ease of reference; when I mention Freehold it should also include sites that are 999 years or given a Statutory grant. 2. In my opinion, there is a difference between buying a Freehold LANDED PROPERTY vs a Freehold CONDOMINIUM. 3. It is very important to understand past precedences:- 3.1 In the past, e.g. prior to 1970's there were very few condominiums. Often, many of these collective apartments are not higher than 6 or 8 storeys high and very spacious. 3.2 Many of them need renovations to the plumbing (sewerage/leaks) etc... And for such sites, an attractive alternative to selling individually is via `En bloc' sale. 4. For example, because of the poor state of these freehold apartments: many of the units, perhaps a unit could still say fetch a reasonable sum (depending on the location/size) of say $500K - in a good market condition. But, if it can be sold collectively, perhaps each owner could pocket e.g. $1 million each. 5. This could be true because: often, the government could increase the plot ratio and allow for higher than 8 storeys high. With allowance for basement car parks (instead of open car park); more space for more units. 6. What about the new FREEHOLD condo; that you want to purchase? If you live on a landed Freehold property; often, it would seem attractive to anyone wanting to purchase it - IF the price is right. Often, many who purchased such `old house' e.g. 30 or 40 years old would like to either renovate it or pull it down to built a new one. 7. How about that Freehold condo, that you are eyeing? 7.1 Nowadays, developers have already squeezed in to the maximum allowed ratio of apartments per site. 7.2 Even if the condo can be around for the next 30 to 50 years. There will always be people who never liked to live in old locations. 7.3 For such Freehold condos, it is not a simple matter of knocking down your unit and rebuilding it. It has to be the concensus of the entire `En bloc' residents for such a sale. 7.4 Even if we do sell it, many of the units already are not as big in space as those in the early 1970's. 7.5 Here "so what if it is freehold?" If Enbloc is unattractive and by the next 20 to 30 years, many of the residents are `aged' - they simply cannot afford to move out since they are stuck with such a property! It would end up literally as an `old' folks home! 7.6 What is worse is that, after 30 to 40 years, given that it is unattractive for an `En bloc' sale; then can we do an extensive renovation to spruce it up? Again, many who had retired, may perhaps no longer have the means to support their home. 8. Therefore, in my opinion, the above are some of the considerations to note if we want to purchase a freehold condo. If possible, even if we want to purchase one; are they any freehold developments that we feel is currently generous e.g. relatively lower units to plot size? Warmest Regards, Cecil