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> Property crowdfunding, Budget 2019 Investment

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icemanfx
post Nov 4 2018, 03:04 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 03:01 PM)
So conclusion is, instead of regulating the market, we're opening up for subprime like what US did?
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Possible but too early to tell, depending on how aggressive this scheme is promoted and executed.

QUOTE(puchongite @ Nov 4 2018, 03:01 PM)
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.
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Without collateral, bank is unlikely to lend.
TSTiramisuCoffee
post Nov 4 2018, 03:04 PM

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If u guys read the site: no rental or monthly loan instalment! Haha! Cos paid in advance ady wat! Hahaha!

Dunno la, if u guys look the price tag, not cheap also. Meant only for 1st x home owners ? Bottom40 can afford such price tag?
vanitas
post Nov 4 2018, 03:13 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 02:35 PM)
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.
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https://www.fundmyhome.com/calculator?price=500000&rate=-5
Big trap, if property price drop at 5% annually (although not quite possible), your 100k gone.
Your Capital Gains/Losses
RM -100,000

puchongite
post Nov 4 2018, 03:16 PM

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QUOTE(vanitas @ Nov 4 2018, 03:13 PM)
https://www.fundmyhome.com/calculator?price=500000&rate=-5
Big trap, if property price drop at 5% annually (although not quite possible), your 100k gone.
Your Capital Gains/Losses
RM -100,000
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Property drops 5% is very likely wor in current market. LOL.
Aurora Boreali
post Nov 4 2018, 03:18 PM

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QUOTE(puchongite @ Nov 4 2018, 03:16 PM)
Property drops 5% is very likely wor in current market. LOL.
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Paging AskarPerang
icemanfx
post Nov 4 2018, 03:34 PM

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QUOTE(vanitas @ Nov 4 2018, 03:13 PM)
https://www.fundmyhome.com/calculator?price=500000&rate=-5
Big trap, if property price drop at 5% annually (although not quite possible), your 100k gone.
Your Capital Gains/Losses
RM -100,000
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This scheme is more to protect developers interest.

J_H
post Nov 4 2018, 03:41 PM

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For the 80% investors, what do they get apart from capital gain? They bought a property for others to stay? Am I missing something here?

This post has been edited by J_H: Nov 4 2018, 03:41 PM
vanitas
post Nov 4 2018, 03:44 PM

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QUOTE(J_H @ Nov 4 2018, 03:41 PM)
For the 80% investors, what do they get apart from capital gain? They bought a property for others to stay? Am I missing something here?
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Guaranteed 5% interest.
https://www.fundmyhome.com/how-it-works
See how to contribute.
J_H
post Nov 4 2018, 03:47 PM

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QUOTE(vanitas @ Nov 4 2018, 03:44 PM)
Guaranteed 5% interest.
https://www.fundmyhome.com/how-it-works
See how to contribute.
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who guarantee this?
vanitas
post Nov 4 2018, 03:49 PM

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QUOTE(J_H @ Nov 4 2018, 03:47 PM)
who guarantee this?
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Since there is only buyer, investor and developer involved,
I assume is developer pay the investor as interest.

Also first 20% of capital gains would goes to developer. So I understand where is the figure 7xxx (on post #5) comes from, it was after minus 20k i.e. 20% of 100k.

This post has been edited by vanitas: Nov 4 2018, 03:52 PM
lowyatwong
post Nov 4 2018, 03:49 PM

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alternative ease of credit,would wonder how regulation and approval machanism work,judging the household debt averaged unsustainable level.
TOMEI-R
post Nov 4 2018, 03:54 PM

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QUOTE(icemanfx @ Nov 4 2018, 03:34 PM)
This scheme is more to protect developers interest.
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Agree on that. They are banking on catering to those who cant get a loan from the banks, yet have a bit of cash at hand. They are also banking on the younger gen of buyers who believe in crowfunding and these kind of 'investments'. Most important is, there is no "guarantee" on your investments and this is the biggest catch.

This post has been edited by TOMEI-R: Nov 4 2018, 03:58 PM
SUSNew Klang
post Nov 4 2018, 03:55 PM

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Sounds like investor is funding developer

Should be called fundmydeveloper.com


Aurora Boreali
post Nov 4 2018, 04:12 PM

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QUOTE(TOMEI-R @ Nov 4 2018, 03:54 PM)
Agree on that. They are banking on catering to those who cant get a loan from the banks, yet have a bit of cash at hand. They are also banking on the younger gen of buyers who believe in crowfunding and these kind of 'investments'. Most important is, there is no "guarantee" on your investments and this is the biggest catch.
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https://www.fundmyhome.com/how-it-works

From How to Contribute tab:

"You stand a chance to get back your principal PLUS a share of the upside if the property price goes up in year 5. If the property price falls by not more than 20%, you will still get back your principal"

Reading between the lines, getting back your principal is up to chance!

Thanks but no thanks, sounds like gambling in this market condition.

Also, homebuyers interview here can't even fork out the 20%:
https://www.edgeprop.my/content/1441326/too...irst-homebuyers

"“My parents helped me with the 20% payment"

“However, my wages have remained stagnant in the past three years while the cost of living and house prices have both gone up. And even if I have saved up enough money to pay the downpayment, it is very difficult for me to repay the loan,” -- boy you're in for a world of pain 5 years from now.

"I’m very excited to finally own my dream home with the 20% payment that my family assisted me with,” he said.




This post has been edited by Aurora Boreali: Nov 4 2018, 04:16 PM
J_H
post Nov 4 2018, 04:18 PM

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QUOTE(vanitas @ Nov 4 2018, 03:49 PM)
Since there is only buyer, investor and developer involved,
I assume is developer pay the investor as interest.

Also first 20% of capital gains would goes to developer. So I understand where is the figure 7xxx (on post #5) comes from, it was after minus 20k i.e. 20% of 100k.
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Still don't quite understand this...

1. Why would developers take the risk to guarantee 5% after a property is sold? Developers are taking more risks if property market is down with 5% guaranteed return to investors.

2. For investors, if no upside, why would they want to participate for 5%p.a. return? Eco World's bond is trading at 6.3%. Since they are taking credit risk from developers, might as well buy their bonds directly.


vanitas
post Nov 4 2018, 04:24 PM

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QUOTE(J_H @ Nov 4 2018, 04:18 PM)
Still don't quite understand this...

1. Why would developers take the risk to guarantee 5% after a property is sold? Developers are taking more risks if property market is down with 5% guaranteed return to investors.

2. For investors, if no upside, why would they want to participate for 5%p.a. return? Eco World's bond is trading at 6.3%. Since they are taking credit risk from developers, might as well buy their bonds directly.
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1. If market is down, buyer bear the first 20% loss, and investor bears the remain, see link below.

2. Investor can enjoy upside, if profits more than 20%
https://fundmyhome.zendesk.com/hc/en-us/art...be-distributed-
TOMEI-R
post Nov 4 2018, 04:24 PM

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QUOTE(Aurora Boreali @ Nov 4 2018, 04:12 PM)
https://www.fundmyhome.com/how-it-works

From How to Contribute tab:

"You stand a chance to get back your principal PLUS a share of the upside if the property price goes up in year 5. If the property price falls by not more than 20%, you will still get back your principal"

Reading between the lines, getting back your principal is up to chance!

Thanks but no thanks, sounds like gambling in this market condition.

Also, homebuyers interview here can't even fork out the 20%:
https://www.edgeprop.my/content/1441326/too...irst-homebuyers

"“My parents helped me with the 20% payment"

“However, my wages have remained stagnant in the past three years while the cost of living and house prices have both gone up. And even if I have saved up enough money to pay the downpayment, it is very difficult for me to repay the loan,”  -- boy you're in for a world of pain 5 years from now.

"I’m very excited to finally own my dream home with the 20% payment that my family assisted me with,” he said.
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That is the exact group of customers they are targetting. Having mention that, those who could come out with the 20% payment either from the parents or their own savings should be able to get a loan from the banks. No reason why they should invest in this scheme.
puchongite
post Nov 4 2018, 04:33 PM

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QUOTE(vanitas @ Nov 4 2018, 04:24 PM)
1. If market is down, buyer bear the first 20% loss, and investor bears the remain, see link below.

2. Investor can enjoy upside, if profits more than 20%
https://fundmyhome.zendesk.com/hc/en-us/art...be-distributed-
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The 20% loss by the buyer must also be viewed in the light the he gets to stay in the place for 5 years already. If he rents another place, he also already burning maybe 80% of the money.
leodinouknow
post Nov 4 2018, 04:36 PM

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QUOTE(puchongite @ Nov 4 2018, 05:33 PM)
The 20% loss by the buyer must also be viewed in the light the he gets to stay in the place for 5 years already. If he rents another place, he also already burning maybe 80% of the money.
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if owner buy with this 20% and secretly rent out to gain profit?
puchongite
post Nov 4 2018, 04:37 PM

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QUOTE(leodinouknow @ Nov 4 2018, 04:36 PM)
if owner buy with this 20% and secretly rent out to gain profit?
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No need to secretly do it. It is his, he can do it.

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