When buying property in Australia, understanding whether you are purchasing leasehold or freehold title is one of the most important due diligence checks you can make. The difference determines what you actually own, what you can do with the land, and how your property can be sold, developed or passed on.

What is freehold property?

Freehold title (also called Torrens title in most Australian states) means you own the land and everything on it outright, permanently and indefinitely. There is no expiry date on your ownership. The vast majority of residential property in Australia is sold as freehold. You have full rights to build, renovate, rent, sell or leave the property to your estate without seeking permission from any third party, subject to council zoning and planning overlays.

What is leasehold property?

Leasehold title means you own the right to use the land for a fixed period under a lease agreement, but the underlying land is owned by someone else — typically the government (Crown leasehold) or a private entity. When the lease expires, ownership of the land reverts to the landlord unless the lease is renewed. Leasehold property is common in the ACT (where all land is technically Crown leasehold), some commercial and resort developments, and certain indigenous land arrangements in the Northern Territory.

What is the difference in practice?

Is leasehold property a bad investment?

Not necessarily. ACT leasehold properties (Canberra) trade freely and prices reflect the leasehold structure. However, resort or commercial leasehold with short remaining terms can be difficult to finance and resell. Always check the lease expiry date, annual ground rent, any restrictions on use or subletting, and whether your lender will accept the title before proceeding.

What should I check before buying leasehold?

• How many years remain on the lease?
• What is the annual ground rent or lease fee?
• Can the lease be renewed and at what cost?
• Are there restrictions on renovation, subletting or short-stay rental?
• Will my preferred lender accept this title type?
• What happens at lease expiry — does the government or landlord compensate you?

Frequently Asked Questions

Is all Canberra property leasehold?

Yes. All land in the ACT is technically Crown leasehold. However, ACT leasehold functions very similarly to freehold in practice — leases are long (typically 99 years), transfer freely and are accepted by all major lenders. Most buyers treat ACT property the same as freehold for investment purposes.

Can I get a mortgage on leasehold property?

Most major lenders will finance leasehold property if the lease has sufficient time remaining (typically 30+ years beyond the loan term). Short-term resort or commercial leasehold can be harder to finance. Always confirm with your broker before making an offer.

Is strata title the same as leasehold?

No. Strata title is a form of freehold ownership where you own your lot plus a share of common property. It is not leasehold. Strata and leasehold are separate title structures.

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