FundMyHome could lead to subprime crisis without care, property advisory firm warns
Author: savemalaysia | Publish date: Thu, 8 Nov 2018, 12:23 PM

KUALA LUMPUR, Nov 8 ― The government’s introduction of crowdfunding platforms like FundMyHome as an alternative home financing solution to banks is laudable, property consultancy Knight Frank Malaysia said today.

However, it advised the authorities to be vigilant in checking the profiles of first time home buyers and fund managers to ensure the mortgage crisis that hit the US over too-easy lending does not happen in Malaysia.

"The availability of Property Crowdfunding platforms will make property more accessible for first-time homebuyers who may not easily qualify for bank loans.

“However, there is concern that this may fuel overly lenient lending policies, potentially leading to future subprime situation, a lesson drawn from the United States where homebuyers with inadequate financial capacities were able to secure mortgages,” Knight Frank Malaysia managing director Sarkunan Subramaniam said in a statement.

He urged the Securities Commission especially to be watchful of such crowdfunding platform managers who may be tempted to build up their portfolios too quickly by lending to first-time home buyers with compromised financial credibility as they may not be able to repay their loans later.

Such a scenario could disrupt the property crowdfunding platforms, he added.

“Subsequently, the funds’ portfolios shall be reviewed regularly to ensure that the investors’ investments are secured,” Sarkunan advised.

The crowdfunding platform initiative was announced by Finance Minister Lim Guan Eng during Budget 2019 last Friday and aims to help Malaysians who have been struggling to buy their first property through peer-to-peer money lending.

Prime Minister Tun Dr Mahathir Mohamad launched the first such platform called FundMyHome last Sunday.

one Zimbabwe money note of 1 billion, Alex enough to pay for your sapEnergy

Alex, I pay for you using Zimbabwe money... Kikiki

P2P fundmyhome lends money to those house buyer who can't get bank loan...

But in the first place, Bank doesn't dare to give loan to those not qualified but u, investor dare to give loan in P2P housing scheme...

U are sure, going to be richer than bank very soon. Hahahahaha

Ahyaaa, those support P2P scheme to own house, don't talk only...

go to apply & buy a house using p2p scheme. Full stop. After 5 years, come to i3 to report Your p2p house story...

Like that bolehkah for P2P house supporter???

Ahyaaa, those support P2P scheme to own house, don't talk only...

go to apply & buy a house using p2p scheme. Full stop. After 5 years, come to i3 to report Your p2p house story...

Like that bolehkah for P2P house supporter???

///Posted by Wow123 > Nov 6, 2018 09:01 AM | Report Abuse

Right issues again so fast fund finished conman business. ///


memang Con business sanichi...
too late to know... Sad

If this p2p financing for Fund My Home is viable, USA & other developed countries long ago alredi implement it. Do you think Msia is more genius than USA?

If this p2p financing for Fund My Home is viable, USA & other developed countries long ago alredi implement it. Do you think Msia is more genius than USA?

///Posted by qqq3 > Nov 6, 2018 12:26 AM | Report Abuse

ted by pussycats > Nov 6, 2018 12:20 AM | Report Abuse

This is like Department store increases the price of items to 20% before giving discount of 20% during promotion or cheap sales time.
=============

not true...buyers are supposed to have a brain....buyers buy only if they are happy with the price. ///


qqq3, no true buyers know everything.

One of my friend who is a developer told me he can initially increased the price of house by 20% and put that price in the house launching price. He told me, if he were to participate in fund my house scheme, he is willing to risk 20% in this scheme. Why? because he told me he already added in 20% price increase in the launching house price initially.

qqq3, don't be so naive. Developers are smart people la.

///Posted by qqq3 > Nov 6, 2018 12:23 AM | Report Abuse

for home owners...20% down, no need to worry about installments for 5 years, and chance to gain from property appreciation
for investors....u get 5% yield and chance to gain from property appreciation
for developers...greatly expand the market., immediate sales

presently, a lot of potential buyers cannot get bank loans....this problem solved as buyers no need to get bank loans....///


qqq3, you are only looking at the bright side.

what if the house never went up after 5 years???

///Jay >>>I have updated the scheme after studying more. Now I figure out the developers' game plan which is to give effective 20% discount (by using buyers' money) to get investors to fund the 80% for returns. Best still, they even get to participate in the first 20% capital appreciation.

So developers get to sell inventory, get cash and potential capital appreciation to recoup rebate/discount and zero downside, while investors get returns plus potential capital appreciation with limited downside (most borne by buyers). It's the buyers that get the raw deal as depreciation will hit their capital while appreciation will mean higher refinancing cost. And ultimately it depends on their eligibility of a mortgage loan in 5 years' time ///

///Sslee>>> Dear all,
This is not a house ownership schemes but a 5 year term investment. The Buyer and Investor put in 20% and 80% to FundMyHome.com. FundMyHomes will paid developer 80% and retain ownership of the house and the 20% sum for management and paying the yearly 5% to Investor for 5 year. Meanwhile Buyer can rent out the house and collect rental or stay in the house. After 5 years the house is up for resale.
1. Must appreciate by 20% for the developer to recoup his 20% and Buyer and Investor to recoup their initial investment sum.
2. Zero appreciation developer lost the 20% and Buyer and Investor to recoup their initial investment sum.
3. Minus 20%. Developer and Buyer lost the 20% but investor recoup the initial investment sum
4. Minus > 20%. Developer and Buyer lost the 20% and investor got paid only what is the house resale value.
5. Appreciate above 20%. Developer to recoup his 20% and Buyer and Investor to recoup their initial investment sum plus the surplus (the % above the 20%) in 20: 80 split.

At the end the Fundmyhome is sure to make money from the 20% sum received at the beginning of 5 years and can use this money for investment with their only liability of paying 5% interest on 80% sum to investor for 5 year.

The problems are at the end of 5 years can that house be resold? What will happen if the house cannot be resold for many years? If the first priority of the resold is to the buyer then who will determine the valuation of the house?

Thank you
05/11/2018 21:11 ///


Just look at conditions no. 1 to 5 above, do you want to invest?

Developer only lost 20% in conditions no.2, no. 3 & no. 4 & make money in condition no. 5 above.

Developer lost 20% money meh in conditions no.2, no. 3 & no. 4 ??? The answer is No. Developer never lost 20% of his shares in fundmyhouse program.
Why?
Bcos developer can initially increased the price by 20% before selling the house to the investor or buyer in fundmyhouse program. Developer sure win in this fund my house program. Don't be fooled by clever developer in fundmyhouse scheme.

This is like Department store increases the price of items to 20% before giving discount of 20% during promotion or cheap sales time.

///Sslee>>> Dear all,
This is not a house ownership schemes but a 5 year term investment. The Buyer and Investor put in 20% and 80% to FundMyHome.com. FundMyHomes will paid developer 80% and retain ownership of the house and the 20% sum for management and paying the yearly 5% to Investor for 5 year. Meanwhile Buyer can rent out the house and collect rental or stay in the house. After 5 years the house is up for resale.
1. Must appreciate by 20% for the developer to recoup his 20% and Buyer and Investor to recoup their initial investment sum.
2. Zero appreciation developer lost the 20% and Buyer and Investor to recoup their initial investment sum.
3. Minus 20%. Developer and Buyer lost the 20% but investor recoup the initial investment sum
4. Minus > 20%. Developer and Buyer lost the 20% and investor got paid only what is the house resale value.
5. Appreciate above 20%. Developer to recoup his 20% and Buyer and Investor to recoup their initial investment sum plus the surplus (the % above the 20%) in 20: 80 split.

At the end the Fundmyhome is sure to make money from the 20% sum received at the beginning of 5 years and can use this money for investment with their only liability of paying 5% interest on 80% sum to investor for 5 year.

The problems are at the end of 5 years can that house be resold? What will happen if the house cannot be resold for many years? If the first priority of the resold is to the buyer then who will determine the valuation of the house?

Thank you
05/11/2018 21:11 ///


Just look at conditions no. 1 to 5 above, do you want to invest?

Developer only lost 20% in conditions no.2, no. 3 & no. 4 & make money in condition no. 5 above.

Developer lost 20% money meh in conditions no.2, no. 3 & no. 4 ??? The answer is No. Developer never lost 20% of his shares in fundmyhouse program.
Why?
Bcos developer can initially increased the price by 20% before selling the house to the investor or buyer in fundmyhouse program. Developer sure win in this fund my house program. Don't be fooled by clever developer in fundmyhouse scheme.

This is like Department store increases the price of items to 20% before giving discount of 20% during promotion or cheap sales time.

To make it as simple as possible, I just ask you all the simple questions below.


Can anyone crowdfunding education of my kids?
Assuming the percentage are the same as above.

If my kids get job, they will pay all the rest of loans.

Investors only risk burning all their money if my kids failed in their exams.



Do you get what I mean?
If you will never going to crowdfunding for my kids education, what more to say, you want to crowdfunding buyers in house purchasing? The concept are exactly the same.

Can anyone crowdfunding education of my kids?
Assuming the percentage are the same as above.

If my kids get job, they will pay all the rest of loans.

Investors only risk burning all their money if my kids failed in their exams.



Do you get what I mean?
If you will never going to crowdfunding for my kids education, what more to say, you want to crowdfunding buyers in house purchasing? The concept is exactly the same.

Can anyone crowdfunding education of my kids?
Assuming the percentage are the same as above.

If my kids get job, they will pay all the rest of loans.

Investors only risk burning all their money if my kids failed in their exams.

Sub prime crisis waiting to unfold.

Susah naik lo...

How?

Bcos budget 2019 no many goodies lah

great discussions here.

Good good Good

no eye see ah

https://klse.i3investor.com/blogs/savemalaysia/180965.jsp

Dr M to discuss Samurai bond issuance with Abe during visit to Japan, envoy says - Nov 04, 2018

Now, we know the true color of k why why...

in i3 his advice is a question mark with full of ulterior motives for self gains.

You all don't believe me...now u see how he hentam Sultan Perak bcos he accused he was dismissed by Sultan as an advisor of Perak Gov.

I long time alredi saw he will be demoted from being an advisor of Perak Gov bcos of his arrogance in i3...
Now not only in i3 he has bad name... his name is also bad in whole of Msia now.

Now, we know the true color of k why why...

in i3 his advice is a question mark with full of ulterior motives for self gains.

You all don't believe me...now u see how he hentam Sultan Perak bcos he accused he was dismissed by Sultan as an advisor of Perak Gov.

I long time alredi saw he will be demoted from being an advisor of Perak Gov bcos of his arrogance in i3...
Now not only in i3 he has bad name... his name is also bad in whole of Msia now.

those buying subsidy petrols only need to line up...If can't lineup in petro station for at least 30 minutes or more like what BR1M (now BSH) lineup to get BR1M in bank...then you just pay for ubsubsidy petrol with no line up lah...

The BR1M receivers need to lineup in Bank, who say petrol subsidy receivers no need to lineup in petrol station???

those buying subsidy petrols only need to line up...If can't lineup in petro station for at least 30 minutes or more like what BR1M (now BSH) lineup to get BR1M in bank...then you just pay for ubsubsidy petrol with no line up lah...

The BR1M receivers need to lineup in Bank, who say petrol subsidy receivers no need to lineup in petrol station???

those buying subsidy petrols only need to line up...If can't lineup in petro station for at least 30 minutes or more like what BR1M (now BSH) lineup to get BR1M in bank...then you just pay for ubsubsidy petrol with no line up lah...

The BR1M receivers need to lineup in Bank, who say petrol subsidy receivers no need to lineup in petrol station???

those buying subsidy petrols only need to line up...If can't lineup in petro station for at least 30 minutes or more like what BR1M (now BSH) lineup to get BR1M in bank...then you just pay for ubsubsidy petrol with no line up lah...

The BR1M receivers need to lineup in Bank, who say petrol subsidy receivers no need to lineup in petrol station???

Oh no, bad news... new taxes...announced...

I get out of my shares now. Bye bye

Oh no, bad news... new taxes...announced...

I get out of my shares now. Bye bye

Salute Khatulistiwa, he will become one of Lion directors bcos of his group buying 30% lions. Clap x3

///Posted by khatulistiwa1234 > Oct 31, 2018 07:22 AM | Report Abuse

I leak the news , i will appointed to be new director , after my group enough accumulated 30% market chips , AGM surprise news all regarding my group on this stock progress , plus new era exquisite , faculty in sector iron metal inevitable explaining ///




See u as director in Lion...
Help us here, small water fish needs your help.

When Khatulistiwa is not active...that's mean Lion is DEAD.

Sad to say, Lion becomes small oredi...

Debt that produces more cash flow than it costs is good," Dalio says. For example, taking a loan to complete an advanced degree that will raise your salary above the cost of the loan's monthly payments and interest is a good form of debt, according to Dalio.

Another type of good debt is the kind that forces you to save money over time. For example, monthly payments on a home mortgage are a type of forced savings, he says, because you are socking away money into an asset you can later sell.

Since Americans often struggle to save (the personal savings rate has hovered around 6.6 percent in the U.S. since June) forced savings can be an important mechanism for Americans to store wealth without being tempted to spend it.

"Debt that creates forced savings, which is greater than you would save if you didn't have it, like buying a house, will produce good debt," Dalio explains.

Unlike taking on debt to earn more or to save more, getting a loan to buy something that won't help you in the future is a bad idea.

"Debt for consumption, or for anything that doesn't produce more income than it costs, is bad debt," Dalio says.

Racking up credit card debt by shopping for clothes or dining out and not paying off the balance at the end of the month is an example of bad debt. The average interest rate on credit cards is close to 17 percent, and consumers spent over $100 billion on credit card interest payments and fees in the last year, according to data from Magnify Money.

Our twin uncles also stuck to Lions, how to break loose from Lions???

///Posted by jackfruit > Oct 26, 2018 09:06 PM | Report Abuse

How come got so many foreign institution holding lion Ind in the latest annual report. Good or no good ah.///





Foreign institutions bought when their currencies are stronger than Rm. They hope Lion will make money but now after pH took over, economy still so-so only. Foreign institutions are now stuck to Lions.

https://klse.i3investor.com/blogs/koonyewyinblog/179532.jsp

This is kwhywhy new article...what is the real mesej behind?

Coming... Uncle kwhywhy published a new post today...

What is the mesej behind his article???

Khatu is a braveheart: a real Rambo fighter.

Sir Calvin tan, u come here to watch movies of Jaws kah?

Don't be sad,

Khatu is a braveheart: a real Rambo fighter.

Ready buy to help kwhywhy support lion price not down anymore

TM faces real competition.

Sayonara TM... sad

guitarist with his chicken lyrics... kikikikiki

Khatulistiwa...u use Roll Royce...wah...

sorry, I thought u use old Mercs...

sorry, sorry, sorry.

Wow, nice blue Roll Royce... Good

///Posted by DkNY > Oct 24, 2018 09:25 AM | Report Abuse

khatulistiwa, you always bo cun one.///






Khatulis is an old Mercedes (in his foto), what do u expect from him?

Luckily Dow only dropped 150points only

Lion to go down?

Khatulistiwa, why your foto bcome old Mercs? Whris your girlfriends, blackbeauty?

///Stock: [LIONIND]: LION INDUSTRIES CORP BHD
Oct 21, 2018 12:15 PM | Report Abuse

Khatulistiwa,
This article out today Sunday, so what is your thought, Lion up or down on Monday???

Creative Charity - Koon Yew Yin


http://klse.i3investor.com/blogs/koonyewyinblog/178981.jsp
///









Khatulistiwa, now we know what kyy meant by his article on Sunday... Creative Charity...

That means, we need to donate first our share profits in Lions now until his kyy next article coming out in i3...

Sad... Kyy really knows Bursa market very well.