Rob talks about the advantages and disadvantages of both freehold and leasehold properties, highlighting a news article about leaseholders in London being hit with unexpected service charges. Rob delves into the benefits of freehold properties, such as ownership of the land and building without the need for permissions or additional costs.
KEY TAKEAWAYS
Leasehold properties come with the disadvantage of potential unexpected service charges, as highlighted in the article discussed in the podcast episode.
Freehold properties offer more freedom and flexibility as the owner has complete ownership of the land and building, without the need for permissions or additional costs like ground rent and service charges.
Leasehold properties provide some advantages, such as not being solely responsible for major repairs or disasters that may occur in the building, as the costs are shared among leaseholders through service charges.
However, leasehold properties also come with the disadvantage of having to renew leases at some point, as well as the additional costs of ground rent and service charges, which can impact both homeowners and landlords.
BEST MOMENTS
"The housing sector is not perfect, yet there are some significant advantages and disadvantages of both freehold and leasehold."
"If you want to put up a picture frame, for example, in your home, you're not going to have to get permission from yourself to do that. You might need to get permission from your wife, though, just in case."
"The disadvantages of leaseholds is that they normally come with ground rent, they normally come with service charges. And that can have an impact on your yield, that can have an impact on your cash flow."
"The big advantage of a freehold is you've got the freedom. You've got the freedom to do things. You don't have to ask many people if you need to do something, which is good."
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ABOUT THE HOST
Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.
BOOKS
Property FAQs = https://amzn.to/3MWfcL4
Buy To Let: How To Get Started = https://amzn.to/3genjle
101 Top Property Tips = https://amzn.to/2NxuAQL
WHERE TO FIND US
https://linktr.ee/thepropertynomadspodcast
uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast
