Posted by calvintaneng > 2018-11-07 09:05 | Report Abuse

Good morning from Singapore

I think to call FundMyHome in Malaysia a ponzi scheme is not correct.

THIS is an innovation to fund a capital formation idea.

A house is an appreciating asset over a longer term as opposed to owning a car which depreciates once it left the showroom

Example is the 2 storey houses in Lorong Maarof in Bangsar Park my neighbour bought in year 1970 for only rm20, 000. Today prices have gone up to a high of RM1. 8 millions to rm2 millions

Now in Singapore Lower Delta Road a hdb flat 3 room was S$9,000. Today it is $S300, 000

In those days Singapore Govt priced those HDB flats at few thousand Sing dollars. Today Hdb priced them from S$200,000 up. Your don't call Hdb a ponzi scheme as real inflation has propelled prices upward over time.

Of course there are upcycle and down cycle. But over a very long time properties do appreciate in value due to scarcity of land and material in relation to world population growth.

TAKE JALAN MAAROF HOUSE THAT HAVE GONE UP FROM RM20, 000 TO RM2 MILLIONS FOR EXAMPLE AS IT GREW IN VALUE FROM 1970 TILL NOW FOR 48 YEARS. IT WENT THROUGH THE 1985-87 RECESSION WHEN TIN AND RUBBER PRICES COLLAPSED. THE 1997 ASIAN FINANCIAL CRISIS AND THE 2007 SUBPRIME CRISIS.

THROUGH 3 GREAT CRISIS PRICES EMERGED STRONGER AND STRONGER

SINCE PH GOVT TAKES THE INITIATIVE TO

1. HELP DEVELOPERS CLEAR RM22 BILLIONS STOCK AS BANKS ARE NOT LENDING

2. HELP B40 TO BUY ASSETS WHICH ARE CAPITAL FORMING

NOTE: BUYING ASSETS ARE CAPITAL FORMING RATHER THAN CONSUMING LIKE CARS

3. GIVE OPPORTUNITY FOR INVESTING BANKS AND INSTITUTIONS TO MAKE FAIR RETURNS OF 5% YEARLY AND 25% IN 5 YEARS

4. AND AT THE END OF 5TH YEAR WHEN PROPERTIES ARE SOLD FOR A PROFIT THE PH GOVT ALSO STAND TO GAIN BY RPGT OF 5% - 10%

SO ALL STAND TO GAIN

1. THE BUYER. ONLY 20% PURCHASE PRICE TO PAY WITH LOAN IF POSSIBLE. NO NEED TO PAY THE EXTRA 80%. HE COULD STAY OR RENT IT OUT

2. THE INVESTING BANK OR INSTITUTION WHICH WILL REAP A RETURN

3. PH GOVT WILL GET MORE REVENUE FROM TAXES AFTER 5 YEARS

SO THIS HITS 3 BIRDS WITH ONE STONE

THE SINGAPORE GOVT PRIDES ITSELF AS A BUSINESS GOVT. IT ENSURES THAT HDB PRICES ARE MAINTAINED AT ELEVATED LEVEL

SO IS THE PH GOVT GOING ALONG THAT TRAJECTORY?

AND THINK

WHEN YOU SAY MALAYSIAN HOUSES ARE Expensive you must realise that in comparing purchasing power in Singapore, Hong Kong, China and even Japan the wage to asset ratio is still quite affordable

One house in Singapore is ten times the value of Malaysia. One house in Hong Kong is 30 times the price of Malaysia
Wages in Singapore is only 3 times more while in Hong Kong only 4 to 5 times more

If B40 realise the cheapness of Malaysian Assets in contrast to those in Spore, Hong Kong, China or Japan they will invest more into Properties

A Nation can grow wealthy by Capital formation.. Not by consumption

Posted by qqq3 > 2018-11-07 09:33 | Report Abuse

no cures for stupid cikus....
got cure for smart and hardworking.

Posted by qqq3 > 2018-11-07 09:36 | Report Abuse

in regulated markets, a little bit of luck, lots of guts can make a lot of money and no one will cheat you of your winnings.

in ponzi schemes, they are out to cheat u.....and the police will catch u....

Posted by qqq3 > 2018-11-07 09:56 | Report Abuse

this is also oxygen for estate agents.

Posted by ks55 > 2018-11-07 10:36 | Report Abuse

SO ALL STAND TO GAIN ?

1. THE BUYER. ONLY 20% PURCHASE PRICE TO PAY WITH LOAN IF POSSIBLE. NO NEED TO PAY THE EXTRA 80%. HE COULD STAY OR RENT IT OUT



You are asking them to borrow from Ah Long?
If they can, they already buying with traditional housing loan right now with so much discount and freebies.

Because they could not get housing loan from bank, you are asking them to get loan from Ah Long now, and in 5 years' time, borrow more money to buy 'appreciated house price' from bank?

This was exactly how subprime loan in US came about.
Pay with bank loan $200k house, 5 years later remortgage with $250k, pocket the difference $50k. Another 5 years later, remortgage with $300k, again pocket $50k.

Then FED raise interest rate, house price came down to $200k.
No money to pay mortgage.
No buyer in the market.
What to do?
Wait for foreclosure lah.
That was the reason you saw so many homeless Americans because they had been chased out by the banks.

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

ks....man are very creative...rationalisation, rationalising stuffs like u do.....go ahead and rationalise all u like.

me? I like it when Malaysia is innovative...I like it when the government puts its reputation on the line with good intentions and with innovative ideas. I like it when the government is serious in tackling the twin problems of unsold stock and of buyers cannot get borrowings.

5 years is a long time....5 years, the properly market should have recovered by then....the buyers can get mortgage loans by then. 5 years, more people can get married and have a home, free of worries over installments.....

cup half full, half empty? all I know is people like this ks, can never get any thing done.

I like positive people, I like innovative people, I like problem solvers, I like people solving problems of the poorer segments........

Posted by qqq3 > 2018-11-07 11:10 | Report Abuse

In this instances, CIMB and Maybank have agreed to be the main investors to get this going......good job, PH.....

Posted by qqq3 > 2018-11-07 11:19 | Report Abuse

CIMB and Maybank mortgage loans are mostly 4%, this thing gives them 5% and a chance to get capital appreciation when the property improves.

Posted by ks55 > 2018-11-07 11:21 | Report Abuse

Posted by qqq3 > Nov 7, 2018 11:19 AM | Report Abuse

CIMB and Maybank mortgage loans are mostly 4%, this thing gives them 5% and a chance to get capital appreciation when the property improves.



Still living in cave?
That was long ago.
How come fake accountant don't know?

Posted by qqq3 > 2018-11-07 11:23 | Report Abuse

I think in 5 years, Malaysian economy will be strong, property market recovered, salaries of owners increased and this is golden opportunity for house buyers and investors.

Posted by qqq3 > 2018-11-07 11:24 | Report Abuse

ks...I know for a long long time already....people like your mentality can never get any thing done.........

Posted by ks55 > 2018-11-07 11:26 | Report Abuse

You can't even send your children for overseas education.
You don't even have 100k to trade in KLSE.

What are you trying to tell me??????

Posted by ks55 > 2018-11-07 11:29 | Report Abuse

Ask kcchongnz, he will give you good lesson why OPM will not help you getting rich.

He will tell you at your age, you already failed miserably getting good retirement for 'rotten years' to come.........

Posted by ks55 > 2018-11-07 11:31 | Report Abuse

Alternatively, you can ask sslee how you can buy a BM for your wife by P2P Funding luxury car......

Posted by qqq3 > 2018-11-07 11:37 | Report Abuse

ks....I have no problem and very confident....cannot say the same for u, kc chong and that ss guy...they don't have what it takes to make money from stock market......

Posted by Jonathan Keung > 2018-11-07 11:40 | Report Abuse

bad strategy for P2P funding

Posted by qqq3 > 2018-11-07 11:41 | Report Abuse

look at so called value investors, kc chong , ss guy and yourself....


this is time for genuine value investors to get excited......but those fake value investors are no where to be found...all probably got buried by the market already......

Posted by godhand > 2018-11-07 11:42 | Report Abuse

its a win for buyer if your goal is to rent/lease for 5 years

Posted by qqq3 > 2018-11-07 11:45 | Report Abuse

my children are doing fine, very fine indeed.

Posted by ks55 > 2018-11-07 14:18 | Report Abuse

If somebody can fake his qualification, surely he can fake everything under the sun.

Check if you are still keeping your underwear?

Posted by qqq3 > 2018-11-07 15:24 | Report Abuse

d by BuahCiku > Nov 7, 2018 01:44 PM | Report Abuse

Aiyo...why why why...qqq3 always against the majority.
===========

I did not design to be against majority...just that the against gang are wrong.........Tong , the guy is good and got future.....he is the guy who exposed 1 MDB and the guy to design this very innovative plan....great future he got......

Posted by qqq3 > 2018-11-07 15:26 | Report Abuse

every time some thing innovative sure got idiots against....

but this thing will succeed and the critic will eat crow.

Posted by pussycats > 2018-11-07 16:10 | Report Abuse

P2P fundmyhome lends money to those house buyer who can't get bank loan...

But in the first place, Bank doesn't dare to give loan to those not qualified but u, investor dare to give loan in P2P housing scheme...

U are sure, going to be richer than bank very soon. Hahahahaha

Posted by qqq3 > 2018-11-07 21:04 | Report Abuse

pussycats > Nov 7, 2018 04:10 PM | Report Abuse

U are sure, going to be richer than bank very soon. Hahahahaha
================

banks are supposed to be more conservative than I am.....

Posted by calvintaneng > 2018-11-07 21:51 | Report Abuse

Bn is Govt centric
PH Govt is citizen centric

Bn goes for high infra projects while pH Govt focus on affordable housing

THE risk of Bn is national while the risk to pH is spread out among many individuals

Tun Dr M has proposed rm62 billions for education to help uplift skill and talent for Malaysians

Don't tell me while China, Korea, Japan and Singapore continue to prosper and grow for the next 5 years Malaysians still trail behind?

Better wake up Malaysia!!!

Posted by qqq3 > 2018-11-07 23:09 | Report Abuse

this is oxygen for estate agents too....

to me...any innovative idea to help economy is oxygen....

Posted by pussycats > 2018-11-08 14:00 | Report Abuse

FundMyHome could lead to subprime crisis without care, property advisory firm warns
Author: savemalaysia | Publish date: Thu, 8 Nov 2018, 12:23 PM

KUALA LUMPUR, Nov 8 ― The government’s introduction of crowdfunding platforms like FundMyHome as an alternative home financing solution to banks is laudable, property consultancy Knight Frank Malaysia said today.

However, it advised the authorities to be vigilant in checking the profiles of first time home buyers and fund managers to ensure the mortgage crisis that hit the US over too-easy lending does not happen in Malaysia.

"The availability of Property Crowdfunding platforms will make property more accessible for first-time homebuyers who may not easily qualify for bank loans.

“However, there is concern that this may fuel overly lenient lending policies, potentially leading to future subprime situation, a lesson drawn from the United States where homebuyers with inadequate financial capacities were able to secure mortgages,” Knight Frank Malaysia managing director Sarkunan Subramaniam said in a statement.

He urged the Securities Commission especially to be watchful of such crowdfunding platform managers who may be tempted to build up their portfolios too quickly by lending to first-time home buyers with compromised financial credibility as they may not be able to repay their loans later.

Such a scenario could disrupt the property crowdfunding platforms, he added.

“Subsequently, the funds’ portfolios shall be reviewed regularly to ensure that the investors’ investments are secured,” Sarkunan advised.

The crowdfunding platform initiative was announced by Finance Minister Lim Guan Eng during Budget 2019 last Friday and aims to help Malaysians who have been struggling to buy their first property through peer-to-peer money lending.

Prime Minister Tun Dr Mahathir Mohamad launched the first such platform called FundMyHome last Sunday.

Posted by Mar T Ho > 2018-11-16 12:45 | Report Abuse

The upside for the buyer is limited because the buyer only starts sharing the gain with investors at 20:80 when property appreciates beyond 20% based on the sales distribution proceed structure. Based on the current property market trend it seems to be too far fetched. On another hand, the buyer will absorb all losses up to 20% before the investors in the event of depreciation in property value. It also poses high liquidity risk to the buyer. Here's my two cents: https://worldbizweek.com/fundmyhome-property-crowdfunding/

Posted by qqq3 > 2018-11-16 13:23 | Report Abuse

good explanation

https://www.thestar.com.my/business/business-news/2018/11/16/crowdfund...

what went wrong is not the product....but misunderstandings and expectations.

history shows a lot of good products can be killed by misunderstandings and wrong expectations.

general public not very smart one........critics not very smart one.

the main point is that this is not a speculative scheme.

Posted by qqq3 > 2018-11-16 14:34 | Report Abuse

ho....the buyer can always refinance his house at cost and convert to normal mortgage if the market is weak even after 5 years.....no different if he had taken normal mortgage except now this guy gets free use for 5 years.......