Why It's a Bad Idea to Buy a Leasehold Apartment

Are you planning to buy a leasehold apartment in the Auckland CBD?

If you do then you need to consider several factors before you make the final decision. In NZ, leasehold properties are a common thing since it’s much cheaper than a freehold property. However, there is a downside to leasehold properties and if you’re an apartment buyer – it’s essential to know all about it.

You need to understand that there are extra costs to leasehold apartments. One in particular is the annual rent on land where your apartment building is built. The soaring prices of annual rent can cripple your budget, so it’s a must to know about it before you decide to purchase a leasehold apartment.

Another factor is financing a leasehold property through mortgage. Usually, retail banks will view these properties as unsecured assets, hence your application might not get approve as you expected.

I have put together an in-depth podcast about leasehold properties and you will learn several things about leasehold apartments. Even though it’s cheaper on your first cash out, you will tend to realise that it becomes a burden in the coming years.

Get the full details on my newest video by clicking on this link: Downside of Leasehold Apartments