Posted by lching > 2018-11-06 14:56 | Report Abuse

a big like to the writer!!!!!

Posted by pussycats > 2018-11-06 17:40 | Report Abuse

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 shzhong > 2018-11-07 23:42 | Report Abuse

How come the information written in this article is so different from what is stated in FundMyHome website? Am I missing something here or the author is trying to mislead the public? https://fundmyhome.zendesk.com/hc/en-us/articles/360018733792-How-will-sale-proceeds-be-distributed-

Posted by qqq3 > 2018-11-08 00:46 | Report Abuse

Pussy...the main issue is whether like the house, the location and the price.....

Posted by qqq3 > 2018-11-08 00:48 | Report Abuse

p2p makes it easier financially..... and no worries about instalments for 5 years

Posted by Jay > 2018-11-08 00:53 | Report Abuse

I don't know what are you missing but they did amend the faq example so now the role of developer is not explicitly mentioned there maybe that's why you are confused. but it's still the exact same thing so notice how buyer's portion doesn't appreciate until house appreciates more than 20%? there's even an article written by others just on this FundMyHome scheme which you can refer to have better understanding. next time maybe do a bit more reading before passing out judgment?

the whole point of my article is not just to point out how this scheme merely help out developers (and FundMyHome portal) but also they are targeting the segment that are financially vulnerable and possibly financially illiterate. They could be tempted into buying the house because of the no monthly payment for 5 years thing without properly understanding the scheme and risks involved

Posted by qqq3 > 2018-11-08 01:07 | Report Abuse

the terms are fair to all stakeholders

Posted by qqq3 > 2018-11-08 01:12 | Report Abuse

Jay... it's fair to all stake holders because the developer paid the 5 % interest to investors... they recoup only if the price appreciates

Posted by qqq3 > 2018-11-08 01:13 | Report Abuse

each stakeholder decides for himself ....its willing buyer willing seller.....

Posted by qqq3 > 2018-11-08 01:27 | Report Abuse

for the buyer, he pays 20%, shifts in for 5 years, no installments, no interest, no rental cost....and at the end of 5 years still got 20% equity stake in his house....what is not fair to owner?

Posted by Jay > 2018-11-08 01:59 | Report Abuse

if you still can't grasp what's the potential problems of this scheme I will summarise some questions for you, maybe you can try to answer them

1. why is the buyer not qualified for loan? why is he buying a house if he's not deemed creditworthy?

2. how does the buyer get the first 20%? is it loaned from sources with even higher interest rate or simply relying on others (family and friends)?

3. why for normal sales, the developer can offer rebates of up to 40% and can't recoup any of such rebates/discounts when the house appreciates? but here developer gets to recoup it at the expense of the buyer?

4. why does the developer share on the upside but not the downside? similarly investor downside is also after buyer bear the first 20% depreciation

5. is there a restriction on what price level the buyer can purchase based on his current income and projected income in 5 years time? if not how do you think buyer will be able to refinance the house after 5 years?

6. if after 5 years buyer wanna stay he has to refinance at market rate, how is it different from buying a new property other than the 20% which probably doesn't come from his own money?

7. if after 5 years buyer can't refinance and wanna sell but market is still bad with limited buyer, does it mean the property have to be sold at all cost (steep discount)? what if multiple properties at same location from FundMyHome hit the market at the same time?

these are key questions that need to be answered before this scheme creates a time bomb in our country, both for the property industry and individual buyers. buying properties with money that you don't have, refinancing down the road etc. are the key reasons why subprime mortgages happened in 2008 crisis

for this scheme to be viable, property needs to appreciate in 5 years time for that 20% to be worth something. mind you, if the property nominal value is RM500k, its actual value is only RM400k (that's what developers actually value them hence the 20% discount). so instead of thinking RM500k appreciate by 20% to RM600k and above then buyer gets capital appreciation, in actual fact the property needs to appreciate by 50% (RM600k/RM400k) before buyer can see capital appreciation

this whole rebate/discount system is one of the main causes of property prices skyrocketing between 2011-2014 but now when market cools down, there's no way you can pass a property worth RM400k as RM500k anymore. Developers and buyers need to wake up and face reality, there's no free lunch in life, if anything you are just stealing from other people's lunch...

Posted by qqq3 > 2018-11-08 08:51 | Report Abuse

Jay...
1...he would know his own circumstances....maybe , he is hawker no income tax form.
2...could be any of the 3 reasons stated....to start a home....
3....case by case....if u agree some thing is 100 k....then the developer should receive 100k....
4...developer recoup first because he pays out of his selling price...he gets right to all his selling price only if the price goes up.
5. five years is a long time to improve credit rating for the owner
6...well....he got free stay for 5 years....
7...u mean like forced selling? forced selling always gets bad prices, so make arrangements no forced selling... most people can improve their credit ratings over 5 years.....life no guarantee, but here is a chance to improve life....

prices up or down, the owner got 20% equity in the property....he does not get zero after 5 years....

and since initially the units listed are unsold units....there are comparisons....and there are public knowledge of the prices.....no need imagination.......so just assume $ 500k is the selling prices at the time.....


jay......the terms are fair to all stakeholders...maybe, the law should say, there must a lawyer who explains every thing to the buyer and sign for it.....make sure no misunderstanding......

Posted by speakup > 2018-11-08 08:52 | Report Abuse

https://sg.news.yahoo.com/najib-suggests-insider-knowledge-fundmyhome-001554645.html
careful what u say, najib is reading i3investor!

Posted by qqq3 > 2018-11-08 08:59 | Report Abuse

initially the investors are Maybank and CIMB ...they also do not want forced selling....maybe make them sign an agreement to refinance the house at end of 5 years ....this is only 80% financing, should be easy for the banks....

Posted by qqq3 > 2018-11-08 09:00 | Report Abuse

what insider trading? what trading? got trading meh?

Posted by qqq3 > 2018-11-08 10:06 | Report Abuse

ciku...u believe najib one meh?

Posted by speakup > 2018-11-08 10:06 | Report Abuse

https://www.malaysiakini.com/columns/450858
PH rompak Petronas. Best giler!

Posted by qqq3 > 2018-11-08 10:09 | Report Abuse

ciku...there are times to be cynical, times to believe.....

the best is to be like a scientists, start and end with first principals and evidence based......

u always cynical......how to get any thing done? I think this Tong/ MOF p2p thing is exactly what the doctor ordered to kick start the economy......and good for good people.....

Posted by qqq3 > 2018-11-08 10:11 | Report Abuse

PH rompak Petronas.....but got choice meh?

they need to do this to repay the tax and GST refunds.....

Posted by qqq3 > 2018-11-08 10:12 | Report Abuse

it is injecting cash into the economy...good for the economy....

Posted by speakup > 2018-11-08 10:14 | Report Abuse

that's why i said "BEST GILER"
it's good to rob petronas, coz oil belongs to RAKYAT!!!!

Posted by speakup > 2018-11-08 10:15 | Report Abuse

hope PH rob Petronas EVERY YEAR :-)

Posted by speakup > 2018-11-08 10:16 | Report Abuse

as long as dont rob EPF, LTAT, KWAP is OK
Petronas is different, rob kau kau coz oil belongs to rakyat

Posted by speakup > 2018-11-08 10:17 | Report Abuse

the only thing i like about this Budget is rob Petronas. That's the BEST GILER thing from PH. This is called Rakyat Didahului

Posted by Jonathan Keung > 2018-11-08 10:21 | Report Abuse

P2P financing is messy . same goes for the petrol subsidy proposal. too simplistic

Posted by qqq3 > 2018-11-08 10:22 | Report Abuse

jay...whether it is mortgage or p2p....one is best advised to only buy if he is happy with the project, the location and the price.....and then, if 5 years later, the property market is still bad ....the mortgage guy is obviously worse off than the p2p guy.......

mortgage guy got 100% equity and gearing even....

Posted by qqq3 > 2018-11-08 10:24 | Report Abuse

keung...p2p is not messy for the family who got a place to call home for 5 years....and no installments or interest payments for 5 years......

Posted by qqq3 > 2018-11-08 10:26 | Report Abuse

traditionally, people pays progressive interest for 3 years, then get possession and starts paying installments......u like to pay a lot of money....

Posted by speakup > 2018-11-08 10:27 | Report Abuse

ankbody know what happen to Pakatan promise to show EPL on RTM?
https://www.channelnewsasia.com/news/sport/epl-on-rtm-if-malaysian-opposition-wins-election-says-youth-wing-9842162

Posted by qqq3 > 2018-11-08 10:34 | Report Abuse

ciku...it is not a ponzi scheme....in this scheme it is transparent and regulated.....and terms are designed to be fair to all stake holders.

Posted by Jonathan Keung > 2018-11-08 10:35 | Report Abuse

qqq3: P2P financing will morphine into another financial distressed bailouts { same as US sub prime housing mortage collaspe } if we are not careful and prices of houses remain distressed. just my personal views

Posted by qqq3 > 2018-11-08 10:36 | Report Abuse

a ponzi scheme, winners are cheated, not paid off....

in a regulated scheme, there is little counter party risk......a little bit of luck, plenty of guts, people can make a lot of money and winners will be paid off......

Posted by qqq3 > 2018-11-08 10:38 | Report Abuse

keung....this p2p is actually low to little down side for the economy for the simple reason there is no gearing involved for the buyer.......

Posted by qqq3 > 2018-11-08 16:22 | Report Abuse

at end of 5 years, there will be a valuation and the p2p buyer will be given the opportunity to buy out- right based on the valuation price......

Posted by Jay > 2018-11-08 17:52 | Report Abuse

@qqq3 you have failed miserably in answering all the questions. let me just show you point by point how you are still confused

1. plenty of hawkers and businessmen with no regular income own houses, banks are smarter than that. in fact they are more than happy to lend money to you if you are creditworthy. the problem here is the target buyer of this scheme is not creditworthy
2. simply put, buyer who can come out 20% on his own most likely qualify for a loan. otherwise, he's just feeding off parent's or other people's money
3/4. agreed upon doesn't mean how the scheme works is right. the whole scheme is still heavily in favour of developers
5. the problem is this scheme doesn't even identify or try to screen buyers with the right profile. there's no telling if your credit rating will improve and the scheme is only interested in selling properties to whoever that wants to buy it
6. it's not free,nothing is free in life. your 20% is already paid and if the market doesn't appreciates, you could lose your entire 20%, that could be more costly than rental
7. how to make arrangements if buyer can't get loan? investors also needs to be protected. if market is soft for another few years does it mean investors will be stuck while buyers get to live for free for another few more years?

in case you have not understood the scheme, your 20% is only worth something if you buy it after 5 years. if you sell it's subject to market prices and any depreciation will be borne by you

have you also heard of a chinese saying "there's price but no market"? the last transacted price may be RM500k, but no one's gonna buy at that price when the market is soft and actual value is RM400k.

lawyers can't help if the scheme is inherently in favour of developers. and if these uncreditworthy buyers are seduced by the no monthly payment thingy, do you think they will bother to understand the fine prints?

Posted by Jay > 2018-11-08 17:58 | Report Abuse

just to be clear, I don't see this as a ponzi scheme. it doesn't rip off new member's money to pay off previous members' returns

but it is actually more of a financial/investment product than a financing scheme. and it's also a marketing tool for developers to unload their unsold inventory to the very people that can't afford it in the first place. it is encouraging speculating and excessive lending

like what others have pointed out, when houses are unaffordable, no matter how creatively you package it, it is still unaffordable unless you tackle the underlying issues

Posted by qqq3 > 2018-11-08 18:17 | Report Abuse

6. it's not free,nothing is free in life. your 20% is already paid and if the market doesn't appreciates, you could lose your entire 20%, that could be more costly than rental
==============


that is pure nonsense...at end of 5 years , there is a calculation table with your equity...............your equity will be your down payment if you want to convert into traditional mortgage.......

Posted by qqq3 > 2018-11-08 18:20 | Report Abuse

jay....banks work on the principle of bridging finance.....today not yet qualify, this facility gives u 5 years to improve your credit rating........and got a house to stay in even....

Posted by qqq3 > 2018-11-08 18:22 | Report Abuse

there may also be people who choose this option over the mortgage option.....every product has its own clientele.....

Posted by relaks > 2018-11-08 18:27 | Report Abuse

https://www.malaymail.com/s/1691166/najib-suggests-insider-knowledge-in-fundmyhome-scheme

Posted by relaks > 2018-11-08 18:28 | Report Abuse

FundMyHome scheme a risk for house buyers, experts say
https://www.freemalaysiatoday.com/category/nation/2018/11/07/fundmyhome-scheme-a-risk-for-house-buyers-experts-say/

Posted by relaks > 2018-11-08 18:30 | Report Abuse

https://sg.news.yahoo.com/fundmyhome-could-lead-subprime-crisis-030903467.html

Posted by qqq3 > 2018-11-08 18:31 | Report Abuse

experts cannot beat studying the terms from first principles.....and understanding the terms......

Posted by qqq3 > 2018-11-08 18:32 | Report Abuse

and Najib no need to talk...Najib is a national, international idiot.....

Posted by Jay > 2018-11-08 18:50 | Report Abuse

I already mentioned the 20% is only worth something if you convert into traditional mortgage. if you sell and price has depreciated, you will bear the drop for the first 20% (essentially wipe off your capital). read the terms more carefully before brainlessly trying to defend this scheme

Posted by calvintaneng > 2018-11-08 18:59 | Report Abuse

Look at the Overall macro picture

PH GOVT GAVE ITS BLESSINGS ON THIS NEW INNOVATION

BANK NEGARA ALREADY MAINTAINED LOW INT RATE OF 3.25%

LGE BUDGET IS EXPANSIONARY WITH MORE DEFICIT

RINGGIT IS EXPECTED TO BE WEAK

INFLATION WILL SPIRAL

ALL THESE POINT TO MORE EXPENSIVE MATERIAL AS RINGGIT CONTINUES TO WEAKEN

SO 20% UPSIDE IN 5 YEARS?

IN TURKEY INFLATION IS 25% PER YEAR (NOT 5 YEAR)

USE YOUR BRAIN LAH!

Posted by joetay7 > 2018-11-08 20:20 |

Post removed.Why?

Posted by TanTeeHean > 2018-11-08 20:22 | Report Abuse

Investors get guaranteed 5% per annum return funded from the money in the trust account.

Where this 5% return come from?

Let say the property price is RM200K, investor need to come out with RM160K, which 5% return is RM8K per annum.

Buyer need put RM40K into trust account, which RM8K/RM40K = 20%, mean trust account at least need 20% yearly return in order to pay RM8K to investor.

Posted by qqq3 > 2018-11-08 21:34 | Report Abuse

tan.... the 5% is paid out of retention fund kept by the developer..... the 20% paid by buyer.

Posted by qqq3 > 2018-11-08 21:35 | Report Abuse

I still think objectors and critics are those who did not understand the terms.
.when they