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Freehold Land Malaysia – The Better Option

The National Land Laws in Malaysia provide that the state is at liberty to dispose a piece of land of to an individual, for an open-ended period of time, granting the piece of land as freehold, under freehold title.  To this end, it is important to note that land ownership assumes permanency, and any other structures existing on the piece of land. In the event that someone acquires freehold land through an established developer, it is upon the said developer to follow the laid down procedures to facilitate transfer of the freehold land ownership to the new owner (buyer).

Whereas the state laws govern the number of bodies or people that can be allowed to own land in other types of properties, there is a leeway in the case of freehold properties, where the number of registered owners is not limited. One can transfer ownership powers from one person to another, as often a need arises and as provided by the laws of the land. This includes the freedom to divide the land into smaller portions or plots, within the controls of town planning. Notably, this freedom of land development is expected to adhere to the interests of the public, taking care to ensure that no danger should be posed to the immediate neighbours or the environment.

Comparatively speaking, most buyers have preference for freehold properties, since the rate of appreciation and ownership stability is high, and the freedom to initiate redevelopment of such lands.

The other factor that quickly comes into play is the place of financial institutions with regard to the ease of processing loans. Such financial bodies tend to be friendlier to owners of freehold lands, since there is no greater risk of the registered owner to lose the said properties, as in the case of leasehold properties on the basis of the remaining period of lease.

Ordinarily, the state is supposed to give consent, whenever someone wants to transfer ownership for most of the ownerships, save for freehold land and properties that are expressly reserved. This implies that the process of buying and selling freehold land is not as time consuming, making it easier for the purchasers to acquire ownership rights and start or continue developing their properties a bit earlier. As a result of this, more often than not, freehold properties tend to attract greater demand and better prices.

Last but not least, owners or purchasers of freehold land are entitled to such properties indefinitely, and as such are not required to pay any fees after a given period of time. If you wish to know more about leasehold land, you can read about it here.


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