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> Property crowdfunding, Budget 2019 (Investment)

TiramisuCoffee
post Nov 4 2018, 01:20 PM, updated 2w ago

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What u guys think of this financing concept? Boleh jalan?
http://www.theedgemarkets.com/article/prop...-more-houses-pm

If u look at the site all up and ready https://www.fundmyhome.com/properties/buy looks like developers were well aware of this concept way before the budget. Their bright idea of how to sell off the oversupply? bruce.gif

cheddar
post Nov 4 2018, 01:25 PM

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good thats means the properties is gonna be slightly higher. for those who wait to bubbles u just can wait..
New Klang
post Nov 4 2018, 01:38 PM

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What is the standard agreement approved by Bank Negara for this type of investment?
New Klang
post Nov 4 2018, 01:42 PM

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Come crowd fund me, I pay 6% interest p.a.
Aurora Boreali
post Nov 4 2018, 01:57 PM

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https://www.fundmyhome.com/calculator?price=500000&rate=5

Lol. The calculator only tells you how much you stand to gain after 5 years. The catch is, you have to pay up in year 5. I used 500k to calculate:



"*You will get back your RM 100,000 if the property does not depreciate in value at the end of 5 years.

In Year 5

Before Year 5 is due, you will need to decide if you want to sell the house (and earn potential profits), or continue to stay in the home by buying over or refinancing the home. The value of your home in 5 years will be RM 638,141, and you will need to pay RM530,513 if you choose to refinance and stay on.

If you want to sell the home, the property will be put on the market and sold at its valuation price. Proceeds from the sale will be distributed among investors and buyers. Based on the appreciation of 5%, you could potentially make RM 7,628 in capital gains or losses."

This is a scheme to help developerps get more waterfish to buy

icemanfx need your expert view

This post has been edited by Aurora Boreali: Nov 4 2018, 02:04 PM
vanitas
post Nov 4 2018, 02:11 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 01:57 PM)
https://www.fundmyhome.com/calculator?price=500000&rate=5

Lol. The calculator only tells you how much you stand to gain after 5 years. The catch is, you have to pay up in year 5. I used 500k to calculate:
"*You will get back your RM 100,000 if the property does not depreciate in value at the end of 5 years.

In Year 5

Before Year 5 is due, you will need to decide if you want to sell the house (and earn potential profits), or continue to stay in the home by buying over or refinancing the home. The value of your home in 5 years will be RM 638,141, and you will need to pay RM530,513 if you choose to refinance and stay on.

If you want to sell the home, the property will be put on the market and sold at its valuation price. Proceeds from the sale will be distributed among investors and buyers. Based on the appreciation of 5%, you could potentially make RM 7,628 in capital gains or losses."

This is a scheme to help developerps get more waterfish to buy

icemanfx need your expert view
*
Where is the figure RM 7628 in capital gains comes from, or how to calculate that?
Aurora Boreali
post Nov 4 2018, 02:26 PM

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QUOTE(vanitas @ Nov 4 2018, 02:11 PM)
Where is the figure RM 7628 in capital gains comes from, or how to calculate that?
*
Click on the calculator link in my post. Assuming 500k home value now and 5% house value annual appreciation rate. Remember you only own 20% of the house when you "buy" it.
vanitas
post Nov 4 2018, 02:29 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 02:26 PM)
Click on the calculator link in my post. Assuming 500k home value now and 5% house value annual appreciation rate. Remember you only own 20% of the house when you "buy" it.
*
100k compound 5 years at 5% is RM 27628, no?
Aurora Boreali
post Nov 4 2018, 02:35 PM

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QUOTE(vanitas @ Nov 4 2018, 02:29 PM)
100k compound 5 years at 5% is RM 27628, no?
*
Profit pays investors and misc fees first probably. I suppose this is the trap. Didn't icemanfx said property is the most opaque investment? Read the T&C before putting your signature down on the contract, as usual.
ManutdGiggs
post Nov 4 2018, 02:37 PM

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Dun do stunt
puchongite
post Nov 4 2018, 02:41 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 01:57 PM)
https://www.fundmyhome.com/calculator?price=500000&rate=5

Lol. The calculator only tells you how much you stand to gain after 5 years. The catch is, you have to pay up in year 5. I used 500k to calculate:
"*You will get back your RM 100,000 if the property does not depreciate in value at the end of 5 years.

*
Assuming property is 500k, and assuming he needs to only pay 20% to 'own' the house, which is 100k, so the bank will provide a 100k loan for 5 years ?

100k loan for 5 years, monthly installment will be how much ?
icemanfx
post Nov 4 2018, 02:41 PM

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Banks profit margin on housing loan is thin about 1%. Qualified buyers are enjoying attractive loan interest rate.

Non bank institution need to offer higher incentive/interest rate to attract depositer/investor/funder, or developer borrow from bank and offer to buyers. At the end, buyers need to pay higher interest rate under this scheme.

Qualified buyers would have chosen bank loan. Only disqualified i.e subprime buyers end up in this scheme.

This scheme allow developers to borrow from bank against unsold units, is a bail out in another name.

Many of unregulated "Crowd funding" scheme will end up in money game or scam.

This scheme may reduce developers overhang units but overhang units in subsale market, which believe is a few times bigger is unlikely be benefitted.

If according to book, those could pay 20% over 5 years tenure could similarly afford 80% over 20 years or 90% over 25 years tenure. Given developers tricks and record, so call rent in first 5 years is likely include discount, rebate, etc and serving loan interest only.

This post has been edited by icemanfx: Nov 4 2018, 02:52 PM
TiramisuCoffee
post Nov 4 2018, 02:43 PM

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Also, they posted a Note to Buyers:

โ€œ FundMyHome is not intended to be a short-term financing platform for homebuyers. We do not recommend it for anyone who does not intend to own the home for at least FIVE years or who wishes to make a quick profit on the home.

Typically, it takes time for properties to appreciate in value. However, if the house price goes down, the Buyer may lose some or all of his capital. As owner of the home, the buyer is also responsible for the maintenance of the home and other relevant costs of ownership (management fees, insurance, quit rent, etc). โ€œ

๐Ÿคจ Of course, non 1st x owner needs to absorb 5% RPGT upon selling after 5 yrs.

End of 5th yr if cannot afford to fork out the 80% (++) balance how? Kena take a loan also what...? or can still withdraw from EPF ? Else own home lelong off or what? Also curious who the investors are?
darkhunter16
post Nov 4 2018, 02:43 PM

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I dont believe this scheme will work..

Who is going to pay the remaining 80%? If the investor can pay 80%, i dont believe the investor can't pay 100%..

Will the buyer pay maintenance fee, renovation fee? ๐Ÿ˜… Who pay for MOT and legal fee?

Will the buyer pay 80% rental to the investor?

This post has been edited by darkhunter16: Nov 4 2018, 04:03 PM
puchongite
post Nov 4 2018, 02:50 PM

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QUOTE(darkhunter16 @ Nov 4 2018, 02:43 PM)
I dont believe this scheme will work..

Who is going to pay the remaining 80%? If the investor can pay 80%, i dont believe the investor can't pay 100%..

Will the buyer pay maintenance fee,  renovation fee? ๐Ÿ˜…  Who pay for MOT and legal fee?

Will the buyer pay 20% rental to the investor?
*
Investor(s) are behind the scene. Investors don't own the house and have no interest in owning the house.

Buyer don't pay rentals to investor. Buyers already own (for 5 years) the house if he could pay up 20%. He may get financing from bank for his 20%.
TiramisuCoffee
post Nov 4 2018, 02:51 PM

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Im posting more what the site says, so that when we discuss we r more in sync. :

About FundMyHome

Developed by EdgeProp Sdn Bhd, FundMyHome.com brings together first-time homebuyers and institutions in a mutually supportive relationship. Buyers pay 20% of the property price to own the home, choosing from a wide array of high-rise and landed homes of different prices and locations showcased on FundMyHome.com. The balance 80% of the cost of the property is contributed by participating institutions, who share the returns from changes in the future value of the home.

With no bank loans and monthly payments to worry about, the result is a simpler, safer and faster home ownership arrangement that also provides greater emotional and financial security.
icemanfx
post Nov 4 2018, 02:56 PM

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QUOTE(TiramisuCoffee @ Nov 4 2018, 02:51 PM)
Im posting more what the site says, so that when we discuss we r more in sync. :

About FundMyHome

Developed by EdgeProp Sdn Bhd, FundMyHome.com brings together first-time homebuyers and institutions in a mutually supportive relationship. Buyers pay 20% of the property price to own the home, choosing from a wide array of high-rise and landed homes of different prices and locations showcased on FundMyHome.com. The balance 80% of the cost of the property is contributed by participating institutions, who share the returns from changes in the future value of the home.

With no bank loans and monthly payments to worry about, the result is a simpler, safer and faster home ownership arrangement that also provides greater emotional and financial security.
*
If a buyer could pay 20%, he is likely qualified for bank loan, need not participate in this scheme.
Aurora Boreali
post Nov 4 2018, 02:59 PM

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QUOTE(TiramisuCoffee @ Nov 4 2018, 02:43 PM)
End of 5th yr if cannot afford to fork out the 80% (++) balance how? Kena take a loan also what...? or can still withdraw from EPF ? Else own home lelong off or what? Also curious who the investors are?
*
After a commitment period of five years, the buyer can choose to sell the home, buyout at remaining portion of the property not owned by him or her at market price, or refinance the home either via FundMyHome or a normal bank mortgage.

Read more at
https://www.thestar.com.my/news/nation/2018...2CFyL3WvXPYm.99

*FundMyHome is currently accepting contributions from Institutions only and will be open to individuals by 2019

See How to Contribute tab on the link:
https://www.fundmyhome.com/how-it-works

Aurora Boreali
post Nov 4 2018, 03:01 PM

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QUOTE(icemanfx @ Nov 4 2018, 02:56 PM)
If a buyer could pay 20%, he is likely qualified for bank loan, need not participate in this scheme.
*
So conclusion is, instead of regulating the market, we're opening up for subprime like what US did?
puchongite
post Nov 4 2018, 03:01 PM

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QUOTE(icemanfx @ Nov 4 2018, 02:56 PM)
If a buyer could pay 20%, he is likely qualified for bank loan, need not participate in this scheme.
*
According to the edge link the buyer COULD get bank loan for his 20%. I presume the loan must be fully settled within 5 years.

This post has been edited by puchongite: Nov 4 2018, 03:02 PM

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