Thesis
Land rights can change the deal completely.
Two properties can look similar in photos, location, and size. One is clean freehold. The other is leasehold with renewal constraints. They are not comparable.
Freehold Is Easier To Understand
所有権 (freehold ownership) generally means the land interest is owned. In a condominium, the buyer usually owns the unit plus a share of the underlying land.
Freehold is usually easier for banks, buyers, and future resale. That does not mean every freehold property is good. It means the ownership structure is cleaner.
Leasehold Can Work, But It Is Not The Same Asset
借地権 (leasehold rights) can be valid and valuable. But the terms matter:
- remaining lease period;
- renewal rights;
- ground rent;
- transfer approval;
- rebuilding approval;
- lender appetite;
- future resale demand.
Leasehold trades at a discount for a reason. The discount may be attractive. It may also be insufficient.
Buildings On Leasehold Need Exit Discipline
The risk is not only today's purchase. It is tomorrow's buyer.
If banks dislike the leasehold terms, resale becomes harder. If approval is needed to transfer or rebuild, flexibility drops. If the lease term is short, value compresses.
Kagura's View
Freehold is not inherently good. Leasehold is not inherently bad.
But land rights must be priced correctly. If the rights are weaker, the return must compensate. If the market is not compensating you, do not rationalize the deal.
Apply this to a real property
Send us the asset or the brief.
We can review whether the property, structure, financing path, and exit logic hold together.