Owning a home involves various legal structures defining the rights and responsibilities associated with property ownership. Two common forms of residential property ownership are freehold condominiums and leasehold properties. Freehold condominium ownership grants the owner title to their individual unit and a shared ownership in the common areas of the building or complex. Leasehold ownership, conversely, grants the owner the right to occupy a property for a specific period, typically for a long duration, while the underlying land ownership remains with a freeholder.
Understanding the distinctions between these ownership models is crucial for prospective property buyers. This knowledge enables informed decisions aligning with individual needs and financial circumstances. The difference affects not only the initial purchase price but also ongoing costs, potential restrictions, and the eventual resale value. Historically, leasehold ownership was more prevalent for residential properties in specific regions, while freehold ownership, including condominium ownership, has become increasingly common, offering different benefits and considerations.
