Posted by siesing > 2018-11-06 04:45 | Report Abuse

It will be very strange if FundMyHome actually allows the home to be refinanced through itself at the end of year 5. If they do so, they will immediately incur a loss of 20% of the value of the home. Where did you get the info that they will actually allow that?

You can imagine the transaction to be as follows:
1. The homes are initially sold at 20% discount through bulk purchase by the FundMyHome investors.
2. The homes are later resold to buyers at 100% of the original price.
3. FundMyHome which holds the 20% difference, pays it out slowly to the investors over 5 years.

The 20% discount from the developer is used to pay out the 5% return to the investors.
If FundMyHome allows the buyer to refinance their home back to FundMyHome, someone will have to fork out another 20% to be paid to the next batch of investors. I sure hope it won't be the home buyers.

Posted by Sslee > 2018-11-06 09:08 | Report Abuse

Dear siesing,
The house belong to FundMyhome and at the end of 5 year the house is open for resale first priority given to buyer to purchase the house from FundMyhome or by public auction. This time the real buyer needs to get bank finance and all payment is to FundMyhome. The FundMyhome then use this sum to pay out to Developer, Buyer and Investor as per pre-agreed format.
The FundMyhome will make a lot of profit from the 20% collected at the beginning of 5 years. If FundMyhome invest this 20% capital that yield 5% yearly return and pay yearly 5% of 80% to investor this is 4% at the end of 5 year FundMyHome will still have (20% + 5x1% - 4%x5)=5% of total house sales. Imagine is the total sales is in Billions how much a 5% worth?

Thank you

Posted by pussycats > 2018-11-06 09:14 | 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 qqq3 > 2018-11-06 10:08 | Report Abuse

ussycats > Nov 6, 2018 09:14 AM | 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?
===========

a good scientist works from first principles....and if it is fair to all stake holders, why not give it a try.? I say it is fair to all stakeholders.

ps....if house prices actually go up at the end of 5 years, this p2p homeowner will wish he took a traditional mortgage and make a lot more money through gearing and 100% equity. Much like a guy bought a share and the share went up a lot, he will wished he sailang and margin and all the share........

Posted by i3gambler > 2018-11-06 10:09 | Report Abuse

For the first 5 years,
The investor enjoy 5% return (assume 5% fixed for all type of houses)
The buyer enjoy the right to stay or rent out.


If you are really interested to be the investor, my opinion is to select the property with big freehold land, the bigger the better, go for detached, semi-D, and forget about the high rise condo or apartment.

If you are really interested to be the buyer, my opinion is to select the property with small shared leasehold land, the smaller the better, go for very high condo and apartment, and forget about the landed property.

Posted by kai8994 > 2018-11-06 10:14 | 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?
06/11/2018 09:14

Open up yr colonised mindset :)

Posted by qqq3 > 2018-11-06 10:17 | Report Abuse

y kai8994 > Nov 6, 2018 10:14 AM | Report Abuse

Open up yr colonised mindset :)
=========


good comment

Posted by qqq3 > 2018-11-06 10:20 | Report Abuse

by i3gambler > Nov 6, 2018 10:09 AM | Report Abuse

If you are really interested to be the investor, my opinion is to select the property with big freehold land, the bigger the better, go for detached, semi-D, and forget about the high rise condo or apartment.

If you are really interested to be the buyer, my opinion is to select the property with small shared leasehold land, the smaller the better, go for very high condo and apartment, and forget about the landed property.
===========

so...let market forces work...that is the magic of market forces to meet in the middle.....

Posted by qqq3 > 2018-11-06 10:28 | Report Abuse

I am aware there are already p2p schemes with similar terms as long as 5 years ago during the property bull market....but there are unregulated and therefore risky...

now, they bring it to the open and regulated world.

Posted by chinaman > 2018-11-06 10:50 | Report Abuse

Why can't modified a bit this 5 years P2P? Adding in another 5 years extension option for buyer till they are ready-to fully committed to 100% own the house. any comment?

Posted by qqq3 > 2018-11-06 10:52 | Report Abuse

any extension will be on modified terms because no more developer behind it to give yield to the investors......

Posted by i3gambler > 2018-11-06 10:57 | Report Abuse

qqq3, They can fine tune the structure for different type of houses, for example:

1) Type A: Buyer get free stay, Investor get 5.0%
2) Type B: Buyer get free stay plus 0.5%, Investor get 4.5%
3) Type C: Buyer get free stay plus 1.0%, Investor get 4.0%

Posted by qqq3 > 2018-11-06 11:15 | Report Abuse

once this thing takes off, people will introduce all kinds of enhancements and improvements to compete in the market place.....

Posted by chinaman > 2018-11-06 11:21 | Report Abuse

Coupled with govt. amnesty till June 2019 for undeclared income with 10-15% penalty, this will further boost of liquidity into our banking system, and property market as a whole. LGE scered big point this time actually. wakaka

Posted by qqq3 > 2018-11-06 11:22 | Report Abuse

putting this in budget speech is huge endorsement by LGE.....he is putting his reputation on the line.

Posted by qqq3 > 2018-11-06 12:58 | Report Abuse

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

Posted by calvintaneng > 2018-11-06 13:01 | Report Abuse

All So Clever contributing ideas

Clap!
Clap!!
Clap!!!

Posted by qqq3 > 2018-11-06 13:31 | Report Abuse

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

Posted by relaks > 2018-11-06 15:01 | Report Abuse

Hi speakup,
I think its sorta NINJA loan. Just for B40 who x qualify for normal loan. Different loan category for different segment of society? ;)

I heard such scheme already exist in Msia. Wonder how they are doing?

Posted by speakup > Nov 5, 2018 02:55 PM | Report Abuse

only idiot will sign up this scheme

Posted by qqq3 > 2018-11-06 15:17 | Report Abuse

this platform is for everyone.... anyone can oarticipate

Posted by relaks > 2018-11-06 15:31 | Report Abuse

Hi qqq3,
Only for 1st home owner.

If take traditional loan, no need put 20% up front. Just 10% will do. Those taking traditional loan also can sell after 5 years. Without having to share profit.

20% down payment is because it’s pretty high risk of default in nature,(learning fr other country’s experience. )

Posted by qqq3 > Nov 6, 2018 03:17 PM | Report Abuse

this platform is for everyone.... anyone can oarticipate

Posted by relaks > 2018-11-06 15:43 | Report Abuse

5 yrs lead time is to buy time? So that the NINJA ( no income, no job, no asset) category can do better by then and qualify for traditional loan (80% outstanding)? If they still don’t qualify for the loan, they will hv to sell. That’s the main worry.

Posted by i3gambler > 2018-11-06 16:02 | Report Abuse

relaks,

Let say your son has just started working as an executive and earn 2500 a month. He wanted to buy a house of 300K, the bank will ask him to fly kite if he apply for a loan.

Now, you can afford to give him 60K, so he joint the FundMyHome scheme.

For the next 5 years, he stay in the new house for free, may be also rent out one or two rooms, and that meaning he can save more.

By end of the 5 years period, he could be already a senior executive earning 5000 a month.

Anyway, I am not encouraging anybody for this scheme.

Posted by relaks > 2018-11-06 16:49 | Report Abuse

i3gambler,
Ideal scenario la, u r painting.

By then how sure r v economy will turn out that well with this type of national debt, budget, current share market, and property market?

Anyway, if he is already earning an income, I would ask him to apply for RUMAWIP using traditional loan. These houses even cheaper compared to those offering by fundmyhome.

Actually, if he cannot qualify for a normal loan he better not take a loan. If he already big boy yet cannot stand on his own 2 feet, need old man to sponsor, He not my son. Like banker,will also ask him to fly kite!

Posted by trulyinvest > 2018-11-06 16:54 | Report Abuse

U cannpt b too optimistic.. dun forget economic xrisis is on d way

Posted by KLCI Going Heaven > 2018-11-06 16:55 | Report Abuse

wah like this cannot get a house, need to come bursa more only can get enough money liao

Posted by trulyinvest > 2018-11-06 16:57 | Report Abuse

If every buyer oso think of buying a 'cheap' house to rent out for extra income. Wat would hapen to rental rates?

Posted by pussycats > 2018-11-06 17:37 | 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 i3gambler > 2018-11-06 17:39 | Report Abuse

Any scheme is suitable only for certain group of people.

And this scheme is for first time house buyer only, targeting the young one which currently earning low pay but probably have great chance to earn much higher pay in 5 years time.

If you are already 40 years old and now earn 2500, it is less likely that you will earn much higher 5 years later.

Posted by qqq3 > 2018-11-06 17:44 | Report Abuse

and what game are critics playing?

trying to show off how intelligent they are?

by me....the only critics are those who don't understand the thing.....

it is a workable plan to solve a big problem of unsold units and buyers cannot get bank loans.....

Posted by qqq3 > 2018-11-06 19:34 | Report Abuse

one caveat....in the early stages , only unsold units from not so hot projects will be listed. Projects selling like hot cakes and second hand homes are not listed....until some one finds a way to make it more lucrative to investors and developers without the 20% retention sum ......

Posted by relaks > 2018-11-06 21:15 | Report Abuse

FYI, if all approved, will launch by Q1 2019.
SC to review structure, guidelines for property crowdfunding framework
http://www.thesundaily.my/news/2018/11/05/sc-review-structure-guidelines-property-crowdfunding-framework
I think a lot of ppl hv mistaken it to be another gomen rumah kos rendah. It’s not. The private company involved is The Edge Property Sdn Bhd.

Posted by qqq3 > 2018-11-06 21:44 | Report Abuse

I understand, at least initially, the 80% portion will be funded by banks/ institutions. Will this cause systematic risk like in Lehman case?

The answer is No....as there is no gearing, this is not a derivative, the first 20% loss in taken up by the buyers. It is a very safe form of investment for investors. No downside but can participate in the upside.

For the buyer...he can stay there without installments/ rentals.....and can participate in the upside. Whatever money he contribute becomes equity in this house.

Posted by chonghai > 2018-11-06 21:55 | Report Abuse

1). I suspect the initial 20% can be in the form of housing loan as well. As long as Bank and the Institution can sort out ownership agreement, approval of housing loan is likely. Term of the loan however, should not be more than 5 years.

2). The deal is good for a house buyer only under the following conditions :
2a). The house buyer is currently renting. By moving to this, he is essentially on a rent-to-own scheme.
2b). The house buyer is not looking for capital appreciation, but a genuine house owner who would like to own the house after 5 years.

3). For a genuine house owner, you will not care if the price went down.

4). If the price went up at the end of 5 years, going for a bank loan would be easier with 20% paid. Some may argue that at the end of 5 years, if price goes up, house buyer would need to fork out an even bigger amount. Then again owning 20% is better than owning none.

5). If the price went up beyond affordability, sell the 20% stake and move to a cheaper house. The home owner get 5 years free stay and all the money back. How nice.!

The plan is very innovative.
What I feel pathetic about is that our MOF and PM run out of ideas and need to stole the thunder of a Business man. Maybe Tong Kooi Ong should be appointed as Minister of Finance instead.

Posted by relaks > 2018-11-06 22:02 | Report Abuse

Chonghai,
This is not Gomen project. Private project. Just that now Gomen need not build 1m affordable homes. Private developers will now help out to make the number.

Posted by relaks > 2018-11-06 22:07 | Report Abuse

Pls read.
http://www.theedgemarkets.com/article/govt-committed-delivering-one-million-affordable-homes-10-years

Posted by qqq3 > 2018-11-06 22:07 | Report Abuse

ciku...this is a regulated scheme...not those ponzi schemes u do....

Posted by relaks > 2018-11-06 22:15 | Report Abuse

qqq3
P2P financing not new in Msia. All other existing ones also regulated by SC.
https://www.sc.com.my/digital/list_rmo/

Any idea if they are doing well?

Posted by qqq3 > 2018-11-06 22:25 | Report Abuse

chonghai....the businessman is very happy got Budget speech endorsement....

The PH government is very innovative to have a scheme to solve the country problem with excessive unsold units and buyers cannot get loans.

This scheme will help the country to recover.

Posted by qqq3 > 2018-11-06 22:28 | Report Abuse

BuahCiku > Nov 6, 2018 10:23 PM | Report Abuse

Aiyo...why why why...beginning it look gook
====================

not true...end of 5 years, buyers will get first option to convert to normal mortgage loan....the 20% contribution becomes his down payment.

Posted by relaks > 2018-11-06 22:57 | Report Abuse

Just happened in China!
https://money.cnn.com/2018/08/08/news/economy/china-p2p-lending/index.html

Posted by chonghai > 2018-11-06 23:12 | Report Abuse

qqq3 One party will suffer badly under the FundmyHome scheme.
Landlords!!!

Posted by einvest88 > 2018-11-06 23:15 | Report Abuse

Too many assumptions what if this and that...talk until so long...only I know if buyer not even dare to commit to buy with 20% loan for his own stay if he qualifies...no point of talking what happen 5 yrs later. I know one day for sure he/she will end up either renting other ppl home for life or sleep on d street.
If d attitude is right, get a roof top 1st then stable down, start doing proper financial planning for the next 5 yrs to come. Otherwise, u will be poor for next of your life.

Posted by qqq3 > 2018-11-06 23:22 | Report Abuse

ciku

there is no cure for stupidity, but LGE and PH got cure for the deserving and the hard working......

Posted by qqq3 > 2018-11-06 23:23 | Report Abuse

relax , it will be regulated market

Posted by calvintaneng > 2018-11-06 23:45 | Report Abuse

Calvintanend Research highlights

1) 5% profit for Institution or Bank for 5 years mean 25% profit. The is a positive assumption that property prices will rise for the next 5 years

2) LGE latest budget is expansionary. That means that PH Govt will stimulate the economy for growth

3) As such Bank Interest rate has to be status quo or even go lower by Govt mandate?

4) In this case inflation will be the norm for the next 5 years

5) As such keeping to cash as a form of investment is a no no.

As I see it

THE BN Govt favours high ticket project to siphon money. So construction company benefitted then

THE PH Govt is pushing for car(3rd national car) and affordable properties.

So BN is Govt centric
But PH is People centric

Thumbs up!!!

Hip hip hooray!!!

Malay bolih!!!

Posted by calvintaneng > 2018-11-06 23:48 | Report Abuse

With the new focus on cars and houses by new PH GOVT

ALL BETTER GO INVEST IN REAL ASSET LIKE HOUSES

YAHOOOOOO!!!!

Posted by relaks > 2018-11-07 00:00 | Report Abuse

Yes, Calvintaneng, u got it so right!
Come la, ride ur bike( bike lane toll free soon) to Msia come invest in Msian properties n cars! Plenty of ready stocks! Sure huat! That’s PH promise to u! ;)

Posted by ming > 2018-11-07 00:46 | Report Abuse

Seem like borrow money to those cant get bank loan..
Bank no dare give loan .. but u dare..
U sure gonna rich than bank soon

Posted by qqq3 > 2018-11-07 01:04 | Report Abuse

ciku, no cure for stupidity...but PH got innovative cure for the smart and hardworking........5 years no instalment.....means people got spending power...and good for economy.