Posted by speakup > 2018-11-05 10:41 | Report Abuse

our generation, we use to save every bit of money then finally after 10 years can afford cheap house. In the meantime we buy the cheapest proton saga for transport

Posted by ks55 > 2018-11-05 10:42 | Report Abuse

DIBS gone, Subprime comes.

See how many flippers with Teh Kim Swee sank to bottom of ocean without return.
You can also foresee how many will be going down with LGE P2P home financing, which could be even worse than PRS introduced by previous administration.

Posted by speakup > 2018-11-05 10:54 | Report Abuse

nowadays i see a lot of youngsters whining about high property prices, but they can afford to buy Toyota Vios or Honda City as their first car. WTF! They rather use their saving to buy car than save up to buy property.

Posted by KLCI Going Heaven > 2018-11-05 10:57 | Report Abuse

as if the property prices isn't high

Posted by speakup > 2018-11-05 10:57 | Report Abuse

how to pity them when they would rather buy a Toyota or Honda rather than cheaper Proton or Perodua.

Posted by ks55 > 2018-11-05 10:57 | Report Abuse

Posted by ks55 > Nov 4, 2018 04:03 PM | Report Abuse X

I was expecting LGE with the help of Cambridge Tony Puah will address critically and objectively to the problem of property (housing) overhung, but I was wrong.

They are barking at wrong tree.
Instead of addressing root problem, they choose to dampen property market further.
If property prices fall below the mortgage, loan become negatively pledged. All banks that loan big to property developers, contractors, and property buyers sooner or later will go holland. This was how US subprime mortgage crisis got out of control when FED decided to hike interest rate, just as what they are doing now.

What I can say is LGE is not up to the mark to be Finance Minister.
We don't expect him to be perfect, but we do expect him to bring in brains when preparing for national budget.

I won't be surprised if he is replaced as Finance Minister if Malaysian economy getting worse because failing to have foresight and long term vision.

頭痛医頭
脚痛医脚






Blog: Govt proposes panel to monitor cost components of houses

Oct 11, 2018 10:34 PM | Report Abuse

Can someone enlighten us how does a housing developer determine selling price of :
1. Condo
2. Terrace house
3. Low cost flat/ PR1MA

I am no expert in housing, but try to figure out composition of each component:

1. Terrace house (say 100k)
1.1 Cost of house sold (60k)
1.2 Contribution to School reserve, Field and playgroud, Police Station, Bomba, Road reserve etc (6k) -- Assuming conversion rate 65%
1.3 Contribution to Bumi Quota with 7% discount, Low cost housing and PR1MA (6k)
1.4 Road, drainage, street light and other infra (3k)
1.5 Sales and marketing (3k)

Gross Profit is 100k - 60k -6k -6k -3k -3k = 22k
So, if you sell a million dollar house, gross profit is 220k

Of course, you will have to give more discount under present weak market sentiment.
Some developers give up to 15% or more (Understood MK Land gives up to 20% discount).
Then you will just have 7% gross profit.
What about interest expenses during construction period?
What about interest expenses after houses already completed but not yet sold?
What about HQ expenses?

Surely looking at the numbers, most developers will be losing money, unless the land cost is low.

How to make sure houses selling cheap, and developers still make decent profit?
Only way is to removed items stated in para 1.3, that will save up to 6%.


For Condo and high-rise apartment, land cost component normally take up around 15%.
Only problem is the developers tend to overpay for the land.
So they will have to build 30 or 40 storey high-rise.
That will take them 4 years to build before they can deliver VP to buyers.
In between, if sales not good, they will receive less progress payment, and paying 4 years bank interest is enough to kill fly-by-night developers like Jaks Resources.
Many such developers will prefer to abandon the project like Plaza Rakyat, for they could not afford to pay LAD.

As how to reduce selling price for the high-rise, better leave it to the authority to work it out.
If the authority concerned is so dumb, learn the trick from S'pore HDB......

Posted by speakup > 2018-11-05 11:06 | Report Abuse

there is a difference between genuine cannot afford and cannot afford cos spend salary on other luxury items

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

The way it works is this:-

Buyer pays 20%, Investor pays 80%, property is worth RM100k, Investor is guaranteed 5% (simple, not compounded - ie RM4000 per year)

On the 5th year, property price is exactly RM80k

Buyer loses all his 'deposit' of RM20k.

Investor does not lose anything and in fact enjoys the 'guaranteed' the 5% (gets RM100k after 5 years having paid RM80k initially and getting RM20k returns [RM4000*5 years]) while still being left with the RM80k property)

As you can see, the 'capital guarantee' is capped at 20%, more than that and the Investor will also lose (hence the disclaimer on the website)

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

Breaking news

China's Xi Jinping promises lower tariffs, broader market access
https://www.straitstimes.com/asia/east-asia/chinas-xi-promises-lower-tariffs-broader-market-access

Posted by speakup > 2018-11-05 11:45 | Report Abuse

who pays the investor the guaranteed 5%? property developer? or buyer?


Posted by valuelurker > Nov 5, 2018 11:31 AM | Report Abuse

The way it works is this:-

Buyer pays 20%, Investor pays 80%, property is worth RM100k, Investor is guaranteed 5% (simple, not compounded - ie RM4000 per year)

On the 5th year, property price is exactly RM80k

Buyer loses all his 'deposit' of RM20k.

Investor does not lose anything and in fact enjoys the 'guaranteed' the 5% (gets RM100k after 5 years having paid RM80k initially and getting RM20k returns [RM4000*5 years]) while still being left with the RM80k property)

As you can see, the 'capital guarantee' is capped at 20%, more than that and the Investor will also lose (hence the disclaimer on the website)

Posted by tecpower > 2018-11-05 12:06 | Report Abuse

Xi's speech may offer clues on China's plan to open markets
https://www.straitstimes.com/asia/east-asia/xis-speech-may-offer-clues-on-chinas-plan-to-open-markets

Posted by paperplane > 2018-11-05 15:47 | Report Abuse

Obviously those are unsold expensive units.... They just want to load it off the mkt.... Hehe.

Posted by paperplane > 2018-11-05 15:48 |

Post removed.Why?

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

Depending on the final structure of the P2P financing, it will create a bubble in the property industry. Property used to be an asset for diversification and slowly accretion in value but will this P2P it will become a pure speculation. Further, nowadays with those so called sifus like Adrian Wee, Michael tan and their property stacking theory with aggressive refinancing is just matter of time the industry becoming very sick

Posted by qqq3 > 2018-11-05 16:17 | Report Abuse

with this platform, anybody and any amount can speculate in property market....5 years.....

genius.....

Posted by Jon Choivo > 2018-11-05 16:17 | Report Abuse

The deposit. Can people take loan for it, or must cash.

Posted by Jon Choivo > 2018-11-05 16:18 | Report Abuse

If must cash, not that speculative i guess.

Posted by einvest88 > 2018-11-05 16:18 | Report Abuse

20% loan from buyer can be either from bank/epf/cash

Posted by qqq3 > 2018-11-05 16:33 | Report Abuse

with this platform, anybody and any amount can speculate in property market....5 years.....

genius.....

for the potential owner....he needs to borrow the 20% deposit from a bank....any bank will let u 20%.............so, anybody also can be an owner....no more such thing as not affordable.....no more instalment to pay for 5 years.....

Posted by Jon Choivo > 2018-11-05 16:34 | Report Abuse

if you can loan the 20k at housing rates. At 5 year length... yeah i can see market really heating up.

Posted by qqq3 > 2018-11-05 16:35 | Report Abuse

for the potential investor....no more gearing effect on the property, but it is gearing effect that traditionally makes property speculation so lucrative ( and so damaging in bad times).....for the potential investor....no more installments to pay....

Posted by joekit > 2018-11-05 16:40 | Report Abuse

this p2p scheme is just wanna clear old stock to people lar....where got good?giv u pay deposit first...later 5 years when house value up ady...ma start pay back bank lor....where got people buy house stay 5 years wanna sell ady one? like that better rent house lar.... this developer saying house price wont drop lor....in 5 years time sure capital gain....if u sell then maybe kena capital gain taz if got then but surely kena rpgt ady....hahaha...is like a trap...haha

Posted by Davidl > 2018-11-05 16:48 | Report Abuse

Subprime M'sia in the making!

Posted by cgc8835 > 2018-11-05 16:52 | Report Abuse

agreed with joekit, said the properties price increased by 20% after 5 years (5% p.a.), buyer actually offered to buy the properties that time, the buyer still need borrow from bank loan / refinance with P2P subject to t&c that time... the future purchase price and T&C (risk) is uncertain...

Scenario for study:

Year 2018 - Selling Price RM300k
20% deposit - RM60k (Paid 2018) - by own or borrow from bank
Year 2023 - Selling Price RM 360k (said appeciate by 20% after 5 years)

so the buyer offered to buy at RM 360k after 5 year , (360 - 60 = 300k), the buyer still need borrow/force out RM 300k (same with 2018 price) after five years ...

Posted by qqq3 > 2018-11-05 16:52 | Report Abuse

for potential investors, it is practically a REIT....no more gearing and super profits.

Posted by qqq3 > 2018-11-05 16:54 | Report Abuse

if this thing is successful, it produces a better society with less gearing, less speculations, less pressure to own a house, u can rent your property and speculate /invest on other people property to participate in property market.

Posted by qqq3 > 2018-11-05 16:57 | Report Abuse

crtics have not understood the thing.....

I promise.....those who understood will turn from critic to supporter.

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

Ask yourself as an investor will u be satisfy for an uncertainh 5% to 6% pa return pa locked in for 5 yrs ??

Posted by speakup > 2018-11-05 17:09 | Report Abuse

raider is right. between this and FD, FD 4.2% is safer & guaranteed


Posted by stockraider > Nov 5, 2018 05:08 PM | Report Abuse

Ask yourself as an investor will u be satisfy for an uncertainh 5% to 6% pa return pa locked in for 5 yrs ??

Posted by stockraider > 2018-11-05 17:13 | Report Abuse

Unless govt give incentive like tax deduction on your income upto rm 5k pa if u invest in P to P lending....if u r high networth investor...u may give a try & punt ....to diversify your earnings source loh...!!

Posted by pussycats > 2018-11-05 17:22 | Report Abuse

Sub prime crisis waiting to unfold.

Posted by qqq3 > 2018-11-05 17:39 | Report Abuse

if this thing succeeds, it will change the way Malaysians look at property investments......

To me, its a good thing.

Posted by qqq3 > 2018-11-05 17:41 | Report Abuse

stockraider > Nov 5, 2018 05:08 PM | Report Abuse

Ask yourself as an investor will u be satisfy for an uncertainh 5% to 6% pa return pa locked in for 5 yrs ??
=============

lock in 5 years and see what happens at end of 5 years.....this is a good time to start this thing.

Posted by qqq3 > 2018-11-05 17:44 | Report Abuse

stockraider > Nov 5, 2018 05:08 PM | Report Abuse

Ask yourself as an investor will u be satisfy for an uncertainh 5% to 6% pa return pa locked in for 5 yrs ??
=============

lock in 5 years and see what happens at end of 5 years.....this is a good time to start this thing.

like a REIT, the web site will also allow secondary market transactions for those opting out before 5 years.....

Posted by Jay > 2018-11-05 19:18 | Report Abuse

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

Posted by trulyinvest > 2018-11-05 19:48 | Report Abuse

Can someone gyarantee the house apreciation is greater than 20% in 5 yrs time? Since house px almost stagnant recently. If not more,than 20% apreciation, investor dun get extra bonus. Might as well put in fd

Posted by Unlevered > 2018-11-05 19:51 | Report Abuse

If the house cost 200k and is sold in fifth year for 220k, does that mean the buyer lose 20k capital assuming 80:20 structure

Posted by trulyinvest > 2018-11-05 19:54 | Report Abuse

Scenario for study:

Year 2018 - Selling Price RM300k
20% deposit - RM60k (Paid 2018) - by own or borrow from bank
Year 2023 - Selling Price RM 360k (said appeciate by 20% after 5 years)

so the buyer offered to buy at RM 360k after 5 year , (360 - 60 = 300k), the buyer still need borrow/force out RM 300k (same with 2018 price) after five years ...

Posted by trulyinvest > 2018-11-05 19:55 | Report Abuse

If the buyer decided to sell, means the,buyer wil lost 60k asumed as rental la. Rm1000 per month rental.

Posted by pussycats > 2018-11-05 20:13 | Report Abuse

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.

Posted by qqq3 > 2018-11-05 20:41 | Report Abuse

crowd funding for education will happen if they can find a way to charge your kid.....I mean how to make the kid repay?

Posted by pussycats > 2018-11-06 00:17 | Report Abuse

///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.

Posted by rajachulan > 2018-11-06 01:24 | Report Abuse

guys...this is an individual sdn bhd businessman idea...do you think a sdn bhd corporate missin is to safeguard the welfare of public?

mind you... what happen if this sdn bhd close shop?

do you know what happen to your investment in a sdn bhd?

Posted by pussycats > 2018-11-06 09:15 | Report Abuse

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 teoct > 2018-11-06 10:29 | Report Abuse

Welcome to the new Malaysia.

Posted by feimah > 2018-11-06 10:44 | Report Abuse

It is more like a money game to buyer..

Posted by qqq3 > 2018-11-06 10:51 | Report Abuse

https://klse.i3investor.com/servlets/forum/600181077.jsp

Posted by qqq3 > 2018-11-06 13:00 | Report Abuse

the 40k paid by buyer is not lost...He still has 20% equity in the house.....

Posted by calvintaneng > 2018-11-06 13:05 | Report Abuse

All So Clever contributing ideas

Clap!
Clap!!
Clap!!!

Posted by qqq3 > 2018-11-06 13:30 | Report Abuse

calvin the value investor...go buy Naim, 90% discount on NTA.....