What Is FundMyHome? Let’s Know More with Wonderlist!
The concept of (P2P) Peer-to-Peer Housing Scheme was announced by the Finance Minister during the Budget 2019 tabling few days ago, quickly followed by the news that the FundMyHome.com (owned by EdgeProp Sdn Bhd) is up and running. It was meant to tackle the housing affordability issue for the first-time homeowners in our country.
How FundMyHome Works?
- Basically, the notion is that Homebuyers only need to fork out 20% of purchase price (either through savings or loan from a bank), while Investors put up the subsequent 80% of the capital needed to finance the deal, in exchange for the opportunity to profit from the capital appreciation of the property.
- After 5 years, the Homebuyers will either have to (i) SELL THE HOUSE or (ii) REFINANCE if they choose to stay.
- Refinance can come in 2 ways: (i) Get a loan from a bank OR (ii) refinance on FundMyHome again (from an entirely new set of investors). No matter how, there is a confirmed exit for the investors after 5 years.
How’s the Profit Distributed After 5 Years?
To understand how the profit distribution works, please take a look at the chart below.
Why Choose FundMyHome?
|What is the benefits?|
|Start with low capital||Can own a house without any loan, and commitment|
|If the property value drops below 20%, there will be no loss for investor||Pay for 20% only at first, buyers can decide whether to sell or buy the property after 5 years|
|No need to worry about the rental yield||No need to worry installment for first 5 years|
|No need to pay for any maintenance and insurance fees ( as it is bared by buyers)||No more endless waiting for loan approval|
|Can take time to investigate the upcoming 5 years capital gains, then might earn capital gains after 5 years||Able to rent the house and earn from it|
According to Free Malaysia Today,p property experts have expressed scepticism and concern over the recently launched FundMyHome scheme for house buyers, saying it is too good to be true.
Chartered property surveyor Ernest Cheong said the scheme, which was launched last Sunday, was misconceived and would not benefit the people.
On the contrary, he said, it would only get them in trouble in five years’ time.
What do you think?