“Is Freehold Always Better? Rethinking Wealth Preservation with the W.A.T.E.R. Strategy”

1. The Property Belief That’s Due for a Rethink

Many Singaporeans grow up with the belief that freehold property is superior — it lasts forever, it’s more prestigious, and it supposedly retains value better than leasehold. But what if we told you that this assumption may actually hold you back from growing your wealth?

Let’s break down a surprising trend: freehold properties can remain stagnant, while 99-year leasehold properties continue to appreciate, even 20 years into their lifespan.

2. The Hard Truth: Why Freehold Isn’t Always More Profitable

Stagnant inconvenient Freehold , Rising Leasehold in a great location — The Numbers Tell a Story

Take this common example:

• Belle Vue Residences (District 9): Between 2019 and 2024, the average price per square foot (psf) for units in Belle Vue Residences remained relatively unchanged, moving marginally from $1,911 psf to $1,909 psf.

•Caribbean at Keppel Bay (District 4):

• Completion Year: 2004

• Price Appreciation: Benefiting from waterfront living and proximity to VivoCity, this development has seen steady price appreciation over the years.

Why?

• Location transformation (e.g., MRT lines, business parks).

• Location: Proximity to amenities, transport hubs, and business districts enhances desirability.

• Developer branding, condo facilities, and newer design trends.

• Leasehold units attract a larger pool of buyers who value function and rental yield over tenure.

Freehold’s “forever” promise doesn’t guarantee growth if the location is old, gentrification is slow, or rental demand stagnates.

Market Perception: While freehold properties are often valued for their perpetual ownership, this doesn’t guarantee price appreciation. Factors like location, demand, and surrounding developments play crucial roles.

It’s essential for property investors to consider these factors and not base decisions solely on tenure. Engaging with real estate professionals can provide insights tailored to individual investment goals.

3. Wealth Preservation vs Wealth Multiplication

Many property owners hold onto freehold assets thinking they’re preserving wealth. But in reality, money locked in an underperforming freehold could’ve grown faster elsewhere.

That’s where the W.A.T.E.R. concept comes in.

4. Applying the W.A.T.E.R. Strategy by David & Audrie

The W.A.T.E.R. framework focuses on:

• Wealth Accumulation

• Asset Progression

• Time Efficiency

• Early Retirement Planning

• Risk Mitigation

Using W.A.T.E.R, we ask: What if you sold your freehold and re-entered the market with a leasehold property in a growth region?

This shift may:

• Unlock $200K–$500K in capital gain or equity.

• Let you upgrade or multiply assets (e.g., buy 1 leasehold to stay in + 1 investment unit).

• Create rental income and compounding appreciation over 5–10 years.

• Still preserve wealth — by turning dead equity into working capital.

5. Isn’t That Risky?

Only if done without a plan.

With proper exit strategy, loan profiling, and location targeting — you’re not just preserving wealth, you’re growing it.

And when the leasehold matures in 15–20 years? You’ve likely cashed out and upgraded again.

6. David & Audrie’s View: Legacy Doesn’t Mean You Must Hold Forever

“Preserving wealth isn’t about keeping what you bought — it’s about making sure your assets work harder than inflation, time, and debt.”

Freehold may give you peace of mind. But leasehold, when picked right, gives you performance.

7. Final Thought: Don’t Let Tenure Hold You Back

Re-evaluate your portfolio with fresh eyes. The right decision may be to let go of your freehold — and start your next growth cycle.

Curious if your property is holding you back? Let’s assess your options using the W.A.T.E.R. strategy.

[Speak to David & Audrie – Start Your Wealth Review]