20 Sep 2011
Words Tim Admin

Freehold and Leasehold Property - What's the difference?

Freehold and leasehold may be two terms you've heard (especially when looking at purchasing property) but never really understood. There are plenty of freehold investment properties for sale as well as leasehold investments but what are you really paying for?

Freehold Property is essentailly 'buying' a property completely. That is, you own the land and all immobile (non-moveable property such as the house, shed, swimming pool etc, as opposed to mobile property such as cattle etc). As well as merely owning the property, you in fact own it for an indefinite amount of time and are able to make changes as you please (as long as they are within council regulations). Being a freeholder gives the advantage of being able to lease the property at a later date at your own discretion.

Leasehold Property on the other hand is, as the name suggests, a lease. If you purchase this type of property you essentially 'own' the land and property for the length of the lease. Any changes you decide to make will need to be approved by the freeholder as well as be within council regulations.

Freehold motels as well as leasehold investments are a great way to generate income either as a career or retirement opportunity. Leasehold investments are available for as low as $200,000 with net profit coming in at $50,000 and higher. Freehold motels come in as low as $650,000 with net profit coming in at $130,000 and higher.*

If you're looking  for freehold investment properties for sale or leasehold investments then take a look at the range of properties at Resort Brokers. Hotels, motels, resorts and caravan parks are all available with freehold, leasehold, investment and management rights all available to suit your needs.

*Based off figures at the time of writing