Estate / North America
Real estate signals: policy, demand, supply, and financing conditions. Topic: North-America. Updated briefs and structured summaries from curated sources.
STAY AWAY - It's Not Really Yours! If You Don't Own The Land You Can't Control These Crucial Things
Full timeline
0.0–300.0
Houses are typically freehold, allowing full ownership without additional charges, while apartments are leased and incur ground rent and service fees. Apartments may offer guaranteed rent but often lack resale value and have lower net rental yields compared to houses.
- Houses are typically freehold, meaning you own both the land and the property. This ownership does not incur service charges or ground rent
- Apartments usually come with a lease that often lasts 99 years. This requires payment of ground rent to the freehold owner, along with service charges for maintenance
- While student apartments or hotel room apartments may seem appealing due to guaranteed rent, they often lack resale value. This makes them less attractive for long-term investment
- Net rental yields for apartments tend to be lower because of additional fees. Capital growth is also restricted due to a limited resale market
- Lease restrictions can hinder development flexibility. Objections from freeholders may prevent short-term letting opportunities
- Apartments are generally harder to resell since most buyers prefer houses. However, they are easier to maintain and typically cost about 30% less than houses