Posted by Ricky Yeo > 2018-11-05 07:31 | Report Abuse

Agree with P2P. Can be understood from the law of conservation of energy - energy cannot be created or destroyed, just transformed from one form to another. Property developers still wants to earn their fair return, the bank that created the loan wants their own fair return from lending, so does the first home buyer who wants to own an affordable home, if the interest of them have not changed, so does the risk. P2P is a repackaging of 'risk' to look as if the risk has disappeared.

Posted by lizi > 2018-11-05 08:10 | Report Abuse

Honeymoon for first 5 years, enjoy now pay later...just enjoy life now, life is short worry about the future loan later...later still no money, how? Why think so much, enjoy now!

Above is my first impression on the scheme.

Posted by feimah > 2018-11-05 08:17 | Report Abuse

It will delay the bubble from burst in nx 5 years. But it definitely will be out of control when it happen.

Posted by Bruce88 > 2018-11-05 08:31 | Report Abuse

The scheme imply can't work ! talk easy.. Harapan may be tapao already after five yrs..haha

Posted by Jon Choivo > 2018-11-05 09:28 | Report Abuse

Very very good. You've put what i was thinking down in words clearer than i possibly can.

Thanks.

Posted by Jon Choivo > 2018-11-05 09:33 | Report Abuse

However, i don't think its malicious.

Its just the government taking the easy way out. The other way is to actually let the property market crash. Which well, is probably politically untenable and quite painful (however neccesary, its not preferred by democratic governments unless there is absolutely no choice).

Posted by Jon Choivo > 2018-11-05 09:36 | Report Abuse

Its a matter of the government having a problem, and Tong, offering a solution. And since he knew this particular policy of the budget beforehand, he took steps to take advantage of it.

Not mahathir or the govt thinking specifically of ways to reward tong etc, and so came up with this.

Tong being able to benefit from it is likely just a happy conclusion for him. Not they key reason this was done.

Posted by trulyinvest > 2018-11-05 09:37 | Report Abuse

like usa subprime crisis

Posted by shareking1 > 2018-11-05 09:38 | Report Abuse

If u no enough money to buy house now, after 5 years , u still no enough money to buy house.

Posted by godhand > 2018-11-05 09:40 | Report Abuse

they are actually raiding the blue chip company. the government want recession but not a pain one.

Posted by godhand > 2018-11-05 09:43 | Report Abuse

for a 300k house 20% translate to 60k or 1k/month. even i know i cant have the house, ill go for it. its still a cheaper option

Posted by godhand > 2018-11-05 09:44 | Report Abuse

unless they have penalty clause which will make more sense. otherwise the home renter is a winner

Posted by Jay > 2018-11-05 09:48 | Report Abuse

Property market is not crashing.It's just undergoing a healthy correction right now. But the developers are impatient and just want to keep selling houses that majority cannot afford. What I can't accept is people pretending to be noble but in reality just want to rip off the poor that is financially vulnerable and are not aware of the risks involved

I believe mass public housing is the way to solve property issues for lower income while middle and high income group will be subject to market supply and demand. One day I might write another article to explore how this may work in real life

Posted by Jon Choivo > 2018-11-05 09:52 | Report Abuse

If the home renter cannot eat the prop after 5 years, they will definitely be the looser.

Chances are, a significant percentage won't be able to, and so the banks will want to dispose a large amount of property at that time.

Question is, can the bank hold the property? This is essentially risk free 5% PA gain from banks, assuming property prices do not fall beyond the 20% paid by the homeowner.

Its very interestingly structured, and achieves what they want. But from a long term perspective not the best.

But it buys some time, for the economy to recover, and the bet is that at the end of 5 years, the economy will have recovered enough for people to pick it up.

Which is the essence of almost all the solutions use to stave off recessions etc. Use debt to boost productivity, with the hope that productivity per dollar will grow and cover the the debt in the end.

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Posted by godhand > Nov 5, 2018 09:44 AM | Report Abuse

unless they have penalty clause which will make more sense. otherwise the home renter is a winner

Posted by godhand > 2018-11-05 09:54 | Report Abuse

its depends on how u perceive the word 'crash'. do u only call it crash after it reaches its bottom or when it's in the process of sliding down. i recently just bought a house at a 40% discount at kl prime area because its going to get lelong anyway.

Posted by qqq3 > 2018-11-05 09:58 | Report Abuse

if it is new, it will attract opponents and friends.

Posted by Jon Choivo > 2018-11-05 09:58 | Report Abuse

Probably right.

However, do note, before 2003, Homeowners in the US had to fork out 30% deposits to begin with. Only after, they cut to 20, 15, then 10%. In addition to all the NINA loans.

Malaysia has always been 10%. In tandem with every asian country that went from developing to developed.

As population density increase, this made people very very rich from property. This ingrained a certain mindset in asians about how buying property will make you rich, and you must buy one.

Average home prices to income in asian countries are usually significantly higher than western countries, if you take out the chinese influence.

Houses in malaysia were very overpriced to begin with. IMHO, any house selling for more than 15-16 times earnings, or 6% yield is considered speculative. Because you are now gambling on either animal spirits or increased population density.

And most houses in malaysia sell for below 6% yield. Population density aint gonna grow every single place.

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Posted by Jay > Nov 5, 2018 09:48 AM | Report Abuse

Property market is not crashing.It's just undergoing a healthy correction right now. But the developers are impatient and just want to keep selling houses that majority cannot afford. What I can't accept is people pretending to be noble but in reality just want to rip off the poor that is financially vulnerable and are not aware of the risks involved

I believe mass public housing is the way to solve property issues for lower income while middle and high income group will be subject to market supply and demand. One day I might write another article to explore how this may work in real life

Posted by Jon Choivo > 2018-11-05 09:59 | Report Abuse

Crash, is when i can get a 8-10% yield property in prime area, wihout airbnb.

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Posted by godhand > Nov 5, 2018 09:54 AM | Report Abuse

its depends on how u perceive the word 'crash'. do u only call it crash after it reaches its bottom or when it's in the process of sliding down. i recently just bought a house at a 40% discount at kl prime area because its going to get lelong anyway.

Posted by godhand > 2018-11-05 10:02 | Report Abuse

it will be repetition of lehman brothers toxic assets if not handled properly.

Posted by hollandking > 2018-11-05 10:02 | Report Abuse

p2p i don tthink will work, there could be hype in the early stage but i think will lead to disaster in the end

Posted by godhand > 2018-11-05 10:04 | Report Abuse

im more interested in the process and structure. impossible to make everyone a winner

Posted by qqq3 > 2018-11-05 10:11 | Report Abuse

When [The Edge Media Group chairman Datuk] Tong [Kooi Ong] came and met me, we talked about many things, one of which was this (FundMyHome.com). I told him he has to prove to the government that it works, I want to see the house and the buyer. He has proven it to Finance Minister [Lim Guan Eng] to the extent that the minister actually mentioned it (P2P) in his Budget 2019,” the premier added.

FundMyHome is the brainchild of Tong, who developed the platform through EdgeProp.
============

me? I think Tong, LGE and Mahathir smarter than i3 forum members.

Posted by Jon Choivo > 2018-11-05 10:14 | Report Abuse

I think people in Lehman Brothers, Bear Stearns etc also very smart.

You should listen to them as well.

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Posted by qqq3 > Nov 5, 2018 10:11 AM | Report Abuse

When [The Edge Media Group chairman Datuk] Tong [Kooi Ong] came and met me, we talked about many things, one of which was this (FundMyHome.com). I told him he has to prove to the government that it works, I want to see the house and the buyer. He has proven it to Finance Minister [Lim Guan Eng] to the extent that the minister actually mentioned it (P2P) in his Budget 2019,” the premier added.

FundMyHome is the brainchild of Tong, who developed the platform through EdgeProp.
============

me? I think Tong, LGE and Mahathir smarter than i3 forum members.

Posted by chinaman > 2018-11-05 10:15 | Report Abuse

At least, Tong Kui Ong can come up with short term measures to solve property over-hung issues, much better than armchair critics with no solution lei. wakaka

Posted by hollandking > 2018-11-05 10:16 | Report Abuse

as you described, short term, so what about long term?

Posted by hollandking > 2018-11-05 10:17 | Report Abuse

govt can't be looking at short term and not long term if the short term will lead to disaster in the future.

Posted by qqq3 > 2018-11-05 10:18 | Report Abuse

jon.......

this is crowd funding...not concentrated in Lehman.....and not a derivative.....

of course details matter.....so, role of SC is important.

they say it is world first.....u not proud meh?

Posted by hollandking > 2018-11-05 10:19 | Report Abuse

world first? If so, why others not doing it?

Posted by qqq3 > 2018-11-05 10:19 | Report Abuse

if it works maybe Malaysia wins a nobel prize.....if it fails....it is investors who loses money.....but , that is the risk for any investor.

Posted by hollandking > 2018-11-05 10:20 | Report Abuse

yup, risk for investor

Posted by qqq3 > 2018-11-05 10:20 | Report Abuse

hollandking > Nov 5, 2018 10:19 AM | Report Abuse

world first? If so, why others not doing it?
=========

any innovative thing also got same question.

Posted by godhand > 2018-11-05 10:21 | Report Abuse

Posted by chinaman > Nov 5, 2018 10:15 AM | Report Abuse

At least, Tong Kui Ong can come up with short term measures to solve property over-hung issues, much better than armchair critics with no solution lei. wakaka


the developers are stupid. they deserve to hug their overprice products and die with it.

Posted by trulyinvest > 2018-11-05 10:21 | Report Abuse

if u dun hv a big head, pls dun wear a big hat...

Posted by chinaman > 2018-11-05 10:22 | Report Abuse

Long term: why property price so expensive? Two big things must be settled. Land cost and conversion/ compliance cost. So, what have govt. land on this part-compliance cost?? govt. also make big money lei in compliance cost. wakaka

Posted by pussycats > 2018-11-05 10:22 | Report Abuse

great discussions here.

Good good Good

Posted by Jon Choivo > 2018-11-05 10:24 | Report Abuse

This question is about thinking on your own.

Instead of blindly believing something will work, or is correct, just because the other person appear to be competant, or you consider them to be sharper than you.

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Posted by qqq3 > Nov 5, 2018 10:18 AM | Report Abuse

jon.......

this is crowd funding...not concentrated in Lehman.....and not a derivative.....

of course details matter.....so, role of SC is important.

they say it is world first.....u not proud meh?

Posted by hollandking > 2018-11-05 10:25 | Report Abuse

why there's glut in the first place? expensive , unaffordable to most locals. Banks don't want to lend bcoz of risk, credit quality of the one wanting to borrow.

P2P this one is more about shifting the risk to the investors. But the credity quality of borrowers will still be same.

But for p2p, it doesnt mean that banks won't have risk. Where is the money from these investors coming from?

Posted by chinaman > 2018-11-05 10:26 | Report Abuse

EPF. wakaka

Posted by Jay > 2018-11-05 10:30 | Report Abuse

I symphatise with developers over land cost, compliance cost, bumiputra quota etc. But I believe in market forces. If the market is telling you it's oversupplied now, you slow down building, not take the easy way out to make the market work for you

As for certain someone, I don't think he has the people or the nation's interest at heart. Maybe just to help his developer friends and make a quick buck himself

Posted by qqq3 > 2018-11-05 10:31 | Report Abuse

p2p are for those who cannot get bank financing.....so, higher risk higher reward.....

Posted by speakup > 2018-11-05 10:32 | Report Abuse

hey, how about P2P affordable luxury car?
u pay only 20% for a Benz, Jaquar or Bently, remaining 80% by P2P.

;-)

Posted by qqq3 > 2018-11-05 10:32 | Report Abuse

its democratic....and innovative....

Posted by Jay > 2018-11-05 10:33 | Report Abuse

I disagree with PM when he said he was convinced because he was shown the property and buyer. Of course developers are happy to list their property on that portal and buyers (or speculators) are also more than happy to get involved in such schemes which "sounds too good to be true"

Posted by speakup > 2018-11-05 10:33 | Report Abuse

i think our new PH govt toooo obsessed with "affordable housing"

they should focus on "affordable iPhone X" and "affordable benz" so every malaysian can afford iPhone X and drive a benz.

Posted by chinaman > 2018-11-05 10:33 | Report Abuse

Why compliance cost so expensive? again, due to bloated state civil servants. No free lunch in this world. Without conversion premium, govt. mau makan apa? so, again the poor buyers have to foot it eventually. Why govt. federal to state do nothing on bloated civil servants causing everything expensive??? Budget dont announce any cost cutting on this part. myr100billion per annum for fed. civil servants alone. State another big cost.

Posted by qqq3 > 2018-11-05 10:33 | Report Abuse

y speakup > Nov 5, 2018 10:32 AM | Report Abuse

hey, how about P2P affordable luxury car?
u pay only 20% for a Benz, Jaquar or Bently, remaining 80% by P2P.

;-)
==============

maybe, they also let u start a web site for that.....

Posted by hollandking > 2018-11-05 10:35 | Report Abuse

affordable benz? die even faster, due to depreciation value of car

Posted by speakup > 2018-11-05 10:38 | Report Abuse

nowadays youngsters want to own a Honda or Toyota and BUY HOUSE all within 1 year of working!
HEBAT!

Posted by Jay > 2018-11-05 10:39 | Report Abuse

they should also stop misleading people. P2P scheme does not promote home ownership, it merely kicks the mortgage application 5 years down the road. In the meantime, instead of paying rental, you pay the 20% amount upfront (which is a lot)

Posted by qqq3 > 2018-11-05 10:40 | Report Abuse

jay

osted by qqq3 > Nov 5, 2018 10:31 AM | Report Abuse X

p2p are for those who cannot get bank financing.....so, higher risk higher reward.....