You cannot right a wrong no matter how many times you want to explain.
Why not put this way: I have done no wrong under existing law. I don't care if poor buyers will suffer in 5 years' time. That is their problem not to read small print as they stand to lose big in the event if they cannot top up 20% due from them.
There could be a lock in period for investor. The scheme design that way to make it slightly better than bank FD but buyer bear most of the risk and developers takes all the benefits
Example, One young man has 60K in bank earning 4.5% interest, He wants to rent an apartment for 5 years, say 600 per month + costs, He will withdraw money from bank for the rental, 5 years later, his bank balance will be 35K.
Now, he find one in FundMyHome, price is 300K, He needs to pay 60K and can enjoy 5 years accommodation, For some reason, he confirm that he does not want the apartment 5 years later, So he could get back more than 60K, or less than that, or get back nothing.
He is kind of person that does not like uncertainty, He walks into the developer office, he propose to the boss, Can they sign another / additional agreement, Regardless what will be the market value 5 years later, He just wants to get back 45K, let the developer earn more with some risk. That 45K is already greater than the bank balance if he rents apartment some where else.
Now, I ask you people,
Will the developer agreeable to his request?
My opinion is:
No developer will agree to this additional agreement, the reason is simple, that apartment is not worth 300K now, and most probably the buyer will not get back 45K.
If there is any developer or anybody else agree to pay you 45K and take the risk on behalf of you, quickly take up the scheme.
qqq3, I said the 600 is excluding maintenance fees and etc, so that I can compare with the FundMyHome scheme.
That is not the main point, my main point is I believe there is nobody want to pay you 45K at the end of the 5 years, to take over the opportunity / risk from you.
He could make money if eventually the valuation of the house is more than 285K (Investor take 240K, and 45K go to Buyer)
what the government can do is to provide a regulated platform...where things are transparent, where there are no frauds, no counter party risks, .....other than that...it is as always caveat emptor.....and this is a good platform...an innovative idea that addresses the issues......
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
shortinvestor77
5,487 posts
Posted by shortinvestor77 > 2018-11-10 12:46 | Report Abuse
Don't lie. All need government regulators especially Bank Negara to approve as long as it involves money collection.