Posted by Bruce88 > 2018-11-05 13:58 | Report Abuse

Have to look into it carefully...

Posted by Ricky Yeo > 2018-11-05 14:11 | Report Abuse

Still have no idea how P2P can mean buying a house at the same price goes from unaffordable to affordable.

Posted by Woolei > 2018-11-05 14:13 | Report Abuse

If a buyer get a loan from bank to finance that 60k with 4.25% interest.
Each month he just need to pay RM 1,111.77 (it almost like rental price)
Although have to bear the insurance, cukai pintu, maintenance fees and etc.
it still seem okay, as it is just like pay rental in advance/financing it.

eventually after 5 years, all 60k gone. it still okay what.

Posted by trulyinvest > 2018-11-05 14:17 | Report Abuse

if many ppl start tis p2p, wil it affect house price appreciation? investor only start to benefit if house px appreciate 20%!!!

Posted by feimah > 2018-11-05 14:18 | Report Abuse

Who will carry the liabilities since the property not belong to "homeowners".
ie monthly maintenance fees and insurance. More complex issue like trespassing..

Posted by Woolei > 2018-11-05 14:20 | Report Abuse

@feimah, it responsible by the Buyer. they are officially the house owner.

Posted by qqq3 > 2018-11-05 14:25 | Report Abuse

its brilliant...hope it works.

Posted by trulyinvest > 2018-11-05 14:29 | Report Abuse

conclusion is, if u dun hv a big head, pls dun wear a big hat

Posted by rajachulan > 2018-11-05 14:30 | Report Abuse

wow...thankyou to all generous investors for funding me a house...i will work hard and save as much as i can next 5 yrs to buy that house... if not...world economy bless us nothing go wrong 5 yrs down the road... and also... everybody please do not change govt in GE15!

Posted by feimah > 2018-11-05 14:41 | Report Abuse

I believe it is more complex then RTO.
Lets say the potential buyer paid 20% down payment plus assessment, 1st year fire insurance and maintenance fees. Assume that the buyer caught in financial difficulty and default in those charges. Will investor need to incur cost to follow up to get those payments regularly, legal fees in the process of getting the payments? At what extend this unit end up at auction house?
It is not so simple..

Posted by speakup > 2018-11-05 14:55 | Report Abuse

only idiot will sign up this scheme

Posted by ks55 > 2018-11-05 14:56 | Report Abuse

Too simplified version of house ownership, and taking rental yield at 6% is highly not achievable.

Now consider you are buying a house for 100k with conventional loan.
1. Down payment 10k
2. All incidences including stamp duty for MoT and loan (not stamping for S&P), lamp and fan, grille, curtain, beds and loose furniture, basic electrical appliances, and minor renovation, add up to another 10k.

All in buyers with conventional housing loan need to put up 20% before you can move in.


If you pay 20% or 20k to participate in P2P funding, who is going to pay MoT, stamp duty etc etc which could come up to another 10k?

Don't tell me you need not pay a single sen after you pay 20k to P2P and you can move in to stay straight away? Without any light, fan and table?

Right now Condo rental is at about 3.5% gross yield and owner has to pay management fee coming close to 10% of their monthly mortgage. Landed is about 2.2% gross yield. Who is going to pay management fees if your house is funded with P2P scheme?

Surely if you cannot afford to installment now, you will not be able to pay installment with the refinanced loan in 5 years' time.

Cheaper for you to rent now with less headache.
Save enough to buy later and with much flexibility instead of 'Too Good to Believe Scheme' to make you poorer in 5 years to come.


ALWAYS REMEMBER TO BUY A HAT THAT FIT YOUR HEAD

Posted by qqq3 > 2018-11-05 15:01 | Report Abuse

ks.


if in 5 years time, owners and investors starts making money, u will change your tune......

Posted by qqq3 > 2018-11-05 15:02 | Report Abuse

why not? prices are low now....excellent time to start this thing....

Posted by speakup > 2018-11-05 15:07 | Report Abuse

malaysia subprime crisis coming?

Posted by William Wang > 2018-11-05 15:38 | Report Abuse

Would like to ask the author, can the developer straight away give 20% discount without going through the scheme. If the developer wants to gamble with his part of the deposit, might as well make a bargain with some 1st time buyers who can afford but prices still not attractive enough. Even though the scheme looks good but I am sure, not all will be taken up by 1st time buyers.

Posted by lizi > 2018-11-05 15:40 | Report Abuse

Not my cup of tea...i invest myself on property better if i bullish on property...why wan to share profit with other

Posted by trulyinvest > 2018-11-05 15:43 | Report Abuse

I think b4 investor putting money into the scheme, oso need to know the background of the buyer

Posted by einvest88 > 2018-11-05 15:44 | Report Abuse

No need to think too far when u make assumption what happen to the home prices up or fall in the future. If the px is up in d future, obviously all will benefit from it but not d other case. It applies to any kind of investment. The objective of the scheme is to solve the current problem facing by developer and buyer...unsold existing unit and affordability of home buyer. It does address the issue here.

Posted by i3gambler > 2018-11-05 15:46 | Report Abuse

Some points to correct/answer the Author's doubt

The sale proceeds go in the following order (use the example in the chart):

1) 240K to Investor
2) 60K to Buyer
3) 60K to Developer
4) Share 80% and 20% to Investor and Buyer

To answer why the Developer has the right to receive 60K from the sale proceeds?

My guess is the Developer is the party who pay 12K (5% of 240K) per year to Investor for the 5 years period.

And why the Developer is in the 3rd order to receive the sale proceed (not the 1st as said by the Author)?

That is to ensure that the developer would not over price the house in the first place, you see if they over price the house, most probably they will not get anything from the sale proceeds anyway, and lose the 60K they pay to the Investor over the 5 years period.

Posted by einvest88 > 2018-11-05 15:52 | Report Abuse

The scheme also address another bigger issue...Default risk. As buyer now only take 20% of the loan, default risk is certainly lower as compare to the current practice where you need to borrow 80-100% of the loan when interest rises.

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

Where did it say developer need to keep 20%.

Posted by einvest88 > 2018-11-05 16:17 | Report Abuse

No idea where did it mention developer need to put in 20%?

Posted by i3gambler > 2018-11-05 16:44 | Report Abuse

I did not find anything saying the developer is the one paying out 5*12K=60K to Investor. But logical guessing, as they stand in the 3rd order to receive the sale proceeds, most probably they are the one who pay.

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

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.

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

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.

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

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

Posted by qqq3 > 2018-11-05 21:24 | Report Abuse

critics will turn to supporters once they understand the thing.....

Posted by Syndicates > 2018-11-05 22:44 | Report Abuse

Looking for a 500k house
Borrow from bank to pay 20% price = 100k
at 4.73% p.a. your instalment per year is 1875*12=22.5k
Rent the property for 5 years at 4.5% rental yield = 22.5k/year
5 years later sell house at 500k
Take back 100k

Conclusion: You earned 100k in 5 years

Posted by rajachulan > 2018-11-05 22:56 | Report Abuse

do everyone aware that this is not a govt project? it is a sdn bhd project.. do you know who own funmyhome? who is tong? and ready to take the risk?

Posted by rajachulan > 2018-11-05 22:59 | Report Abuse

for investor who wants to invest in prop but not fancy on manage them...we do have a choice call REITS...

Posted by rajachulan > 2018-11-05 23:01 | Report Abuse

@pussycat! i like the idea! will get my friend to set up a website tomorrow working ot on a public holiday so we can get the funmykids up and running wednesday first thing morning!

will also look inti funmy car which more demand from housing!

Posted by Yong Hao > 2018-11-05 23:02 | Report Abuse

There's a 5% guaranteed to investor. lol writer you need to do your homework well.

Posted by rajachulan > 2018-11-05 23:05 | Report Abuse

sincere suggest those people in need to raise fund from kickstarter.com or gofundme.com...easier

Posted by rajachulan > 2018-11-05 23:15 | Report Abuse

true @winterisover... i just fancy that how can a pm and a mof of a country so keen promoting a sdn bhd project...and even put it in the NATIONAL budget...has govt running out of idea how to tackle her resident's housing issue?

Posted by rajachulan > 2018-11-05 23:20 | Report Abuse

dont forget the crookbridge... hahahahahaha

Posted by qqq3 > 2018-11-06 00:10 | Report Abuse

know what I think?

I think it is genius.

Posted by pussycats > 2018-11-06 00:20 | 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 qqq3 > 2018-11-06 00:23 | 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....

Posted by pussycats > 2018-11-06 00:25 | Report Abuse

///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 ///

Posted by qqq3 > 2018-11-06 00:26 | 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.

Posted by qqq3 > 2018-11-06 00:28 | Report Abuse

the terms are fair to all stake holders....whoever design this thing has thought of every thing......

Posted by pussycats > 2018-11-06 00:34 | Report Abuse

///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???

Posted by qqq3 > 2018-11-06 00:39 | Report Abuse

pussy

what big deal? House prices at multi year low....chances of rebound very good....if no movement in price...what big deal?

Traditionally, houses heavily geared, its super profit or very damaging in bad times....This one, no gearing effect....net gains and losses very small one......

Posted by pussycats > 2018-11-06 00:44 | Report Abuse

///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 > 2018-11-06 00:44 | Report Abuse

although it is called p2p, initially most of the investors will be institutions who find the terms attractive....low risk, better than FD , and got chance to participate in capital appreciation.

Posted by qqq3 > 2018-11-06 00:46 | Report Abuse

Posted by pussycats > Nov 6, 2018 12:44 AM | Report Abuse

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

developers are smart....but there is nothing in this world can insure against stupidity.....who ask your friend to be stupid?

Posted by qqq3 > 2018-11-06 00:52 | Report Abuse

pussy...imagine...for 5 years stay in the house and no need to worry about instalments.....the newly weds will have greater spending power....and that do marvel for the economy.......

Posted by qqq3 > 2018-11-06 01:11 | Report Abuse

in 5 years years, the couple can roll over the thing, or can choose to get a traditional mortgage loan....how nice......

Posted by rajachulan > 2018-11-06 01:27 | Report Abuse

good for the couple and gdluck to the investor...

very very good for ****prop's tong and ***world liu and others to get rid of excessive stocksssssssssss