How to stop renting and save RM12,000 a year

Are you struggling to live within your means? Is your fixed monthly expenses taking up all of your income?

According to BelanjawanKu, the Expenditure Guide for Malaysian Individuals and Families, launched by the Employees Provident Fund (EPF) in March, individuals who are single require RM2,490 a month to live in Klang Valley while married couples with one child should have an estimated budget of RM5,730 in household expenses.

Source: BelanjawanKu, Expenditure Guide for Malaysian Individuals and Families, Klang Valley 2019

At RM300 a month on housing expenditure, singles can afford only a room at a low cost apartment. A quick check on popular listing sites will show that room rentals in the heart of Klang Valley ranges between RM350 – RM500. If you are married, you can expect to spend RM850 – RM1300 for a 2-bedroom apartment or single-storey house.

Let’s compare the housing expenditure of these two categories if they were given the option to own a home without a mortgage.

With FundMyHome, you don’t have to continue renting. You can make a one-time payment and have 20% equity in your own home. What’s even better is the mortgage-free ownership that you will enjoy – you do not have the burden of monthly repayments for 5 years!

Wondering how to finance the 20%? We’ve got you covered.

Through FundMyHome, first time home buyers can opt for a government loan of up to RM30,000 from the Ministry of Housing and Local Government (KPKT) under the FundMyHome+DepositKu scheme. 

Let’s say you need RM61,400 to own your first home on FundMyHome:

With DepositKu, you pay RM31,400 after subsidising RM30,000 with the loan.

If you are a Bumiputera, you will need only RM9,910 for the same property!

By lowering the barriers to entry, FundMyHome makes home ownership more accessible. With no housing debt to worry about, buyers will then have some flexibility to focus on other important needs or goals.

If you have been paying at least RM1,000 in rental a month, you could potentially turn this into savings and have RM12,000 in 1 year. With some careful planning, there will be more room to improve your finances within 5 years.

Are you eligible to own a home on FundMyHome? As long as you’re a Malaysian aged 18+ and not a bankrupt, you can sign up right away! Don’t wait to own your first property. Visit www.fundmyhome.com for an easier way to get on the property ladder.

What does it take to own a home at 25?

There are many things you would consider buying at 25 years old and a house is rarely in the top 10 things you need or want to buy. Even if you believe it’s a good idea, is it financially possible?

First of all, it takes years to save up for a downpayment. And if you are earning an average income of RM2,500 – RM3,000, you may not be eligible to get a mortgage for a home of your choice.

A RM300,000 home will require you to earn a minimum of RM3,500 in order to get a 30-year mortgage and you must be able to commit RM1,400 in monthly repayments.

Let’s say you have sufficient funds for a down payment now because you have been saving and working part-time. If you are still not eligible for a mortgage, you can delay the purchase by working your way up towards a RM3,500 salary – which will take another 2 – 3 years.

It is possible that you will buy your first home before turning 30 but property prices would have gone up by then. You may not get the same value for a RM300,000 house.

Here’s an alternative.

Through FundMyHome, you can own a home with relatively low barriers to entry.

Afiq Abidin entered the job market not long ago and didn’t think that owning his first home at 25 years old was possible. With FundMyHome, he is now the proud owner of a home in Semenyih.

Under FundMyHome, you only need to pay 20% of the property price to own the home and the other 80% will be contributed by institutional investors. No mortgage required.

With the 20% down payment you already have, you can have a 20% stake in the home immediately. And for 5 years, there will be no monthly repayments to worry about!

Instead, you can leverage on these 5 years to:

1. Improve your finances

Pay off any debt and have the flexibility to manage your finances properly. You also have some breathing room to utilise your salary increments and bonuses for other things – that epic adventure you wanted to make at 25, with some delayed gratification, you can do it at 28 on a less tighter budget.

2. Build good credit score

If you have taken a personal loan to pay for the 20%, you can start building good credit rating by making your repayments on time. This will put you in a better position to get a mortgage from the bank when you’re ready.

3. Earn passive income

You can rent out a spare room for a couple of hundred ringgit to relieve your finances. Or if you need to, you can also rent your home out within the 5-year commitment period with FundMyHome.

By the end of 5 years, you must decide if you want to continue staying by refinancing the home through FundMyHome or via a mortgage, or sell it.

Remember, you have a 20% equity in the property.

If you had put RM60,000 for a RM300,000 property through FundMyHome, you will get it back if you can sell it for the same value at Year 5 (an independent valuation will be conducted to determine its prevailing value).

Through FundMyHome, it is possible to own a home at 25 and be better off by 30. 

No EPF, No Problem. You Can Still Own a Home!

The Chief Executive Officer (CEO) of the Employees Provident Fund (EPF), Tunku Ali-zakri Alias, announced recently that the rise of the gig economy is causing a decline in EPF contributions and EPF may cease to exist in our lifetime.

The gig economy is a growing part of Malaysia’s workforce and we have observed a trend where demand for co-working spaces is taking over prime office locations. Kelly Services Inc. reported that 31% of the global workforce are gig workers. Such trends are indicative of a new economy that’s thriving with income opportunities.

There is one problem though. Freelancers and self-employed workers often cannot show any steady income documentation and this makes it difficult to get a bank loan, including a mortgage to buy a home.

If you are self-employed, these are the documents you need to submit to apply for a home loan:

  • Identification Card – NRIC (copy)
  • Property Booking Receipt
  • Vendor Sales & Purchase Agreement/Title (copy)/New Sales & Purchase Agreement
  • Latest 6 months Company Bank statement
  • Latest 6 months Personal Bank statement
  • Deposit statement eg. Fixed Deposit, ASB or Bonds (if any)
  • Business Registration Number

Unless you have been practising good bookkeeping to build up a credit-worthy profile, these documents will simply be.. daunting.

Let’s say you are running a food truck business at night and during the day you freelance as a designer. You may be earning a decent amount on average and you are happy. You know you can afford the monthly repayments of a home loan. Yet, you may be rejected because you cannot show a steady stream in your 6-months statement due to fluctuations in your gig.

Traditional financing mandates have made it difficult for non-salaried employees to get a mortgage and own a home.

What if we can rewrite the rules?

What if you can now buy a home with only this:

  • Identification Card – NRIC (copy)
  • Property Booking Receipt
  • Vendor Sales & Purchase Agreement/Title (copy)/New Sales & Purchase Agreement
  • Latest 6 months Company Bank statement
  • Latest 6 months Personal Bank statement
  • Deposit statement eg. Fixed Deposit, ASB or Bonds (if any)
  • Business Registration Number

Here’s the promising news for prospective home owners from the gig economy.

FundMyHome offers an alternative solution for first time homebuyers to purchase a home up to a value of RM500,000 without a mortgage.

Buyers need to pay only 20% of the property price and institutional investors contributes the remaining 80%. This covers 100% of the property’s value.

As a result of this shared equity, buyers do not need to get a mortgage and they enjoy zero monthly repayments for 5 years. Meanwhile, investors benefit from a share of any upside at the end of 5 years.

Now, let’s think outside the box for a minute.

The buyer owns 100% of the home with a one-time payment. You sign the SPA, move in and stay for 5 years – the commitment period. In these 5 years, you have a bit of flexibility to plan your finances and personal growth. If you need to move out any point within the 5-year period, you can rent it out and earn rental income.

At year 5, you are now ready to either refinance the home or sell it. If the property has not gone down in value, you will get your equity back (your portion of the 20%) upon sale. This means that you would have STAYED FOR FREE for 5 years!

The question to ask yourself, is…

If you are self employed and trying to get on the property ladder, what can you afford now? And how much time or flexibility do you need to achieve your financial goals?

With FundMyHome, you are given a chance to lock in a portion of your savings in a property now. You have 20% equity with no additional monthly repayments. At year 5, you may be better off if you have been disciplined in managing your cash flow.


Deloitte reported that self-employment is likely to triple to 42 million workers by 2020, with millennials leading the way.

More people are turning to alternative work and many aspire to own a home but are turned away by the traditional barriers of entry, particularly in getting a mortgage. FundMyHome can serve these needs and help them own a home.

If you’d like to understand if FundMyHome is right for you, give our consultants a call at 03-77328820 or WhatsApp them directly at +6 018 388 4165.


Are you eligible to buy your first home on FundMyHome?

The basic criteria is that you must be a Malaysian, aged 18 and above, and not a bankrupt.

A common question users frequently ask is, “Do you need to screen my CCRIS and CTOS reports?”

We understand. You are worried about not being eligible for a bank loan because of weak credit scores. It is more common than you think.

Image via imgflip

While you would want a high score when buying a property with a mortgage, you don’t need excellent credit to be eligible for FundMyHome although buyers are screened for bankruptcy.

What FundMyHome offers is an alternative way to finance your first home without a mortgage.

Here’s how it works.

*5 years is the fixed commitment period

Now, let’s look at what you can afford.

All properties listed on FundMyHome are priced within RM300,000 to RM500,000. Only trusted, reputable developers are selected to be in onboard, so you can be assured that the quality of living is not compromised.

On this list you will see projects that are “Fully Funded” and “Funding in Progress”. What it means:

Fully Funded are properties with complete funding from institutional investors. With the 80% locked in, buyers will only need to pay the 20% to sign the SPA and own the home.
Funding in Progress are properties that will be opened for funding upon receiving a booking from buyers. After a buyer pays the booking fee (2% of the 20%), FundMyHome will seek investors to fulfill the 80% within 30 days.

If you pick a Fully Funded apartment priced at RM307,000, you only need to pay 20% to own it via FundMyHome. That is RM61,400 – a one-time payment which you can finance in a few ways:

  1. A portion of your own savings + borrowings from family
  2. Personal loan (we have done the math here)
  3. FundMyHome+DepositKu scheme, a loan by KPKT up to RM30,000

Why choose FundMyHome over other schemes?

Depending on your financial circumstances and where you’d like to stay, you would find yourself comparing housing or home ownership schemes to fit your needs. FundMyHome is just one of many options available to you.

What FundMyHome offers that others don’t is a mortgage-free way to own a home. How will this benefit buyers?

No monthly repayments!

Image via memeguy

This could mean more breathing room to manage your cash flow in the next few years.

No more renting!

Image via Giphy 

Do you really want to pay more rent over 5 years? We’ve covered it here.

Congrats, you have equity!

Image via Giphy

The good news is, you did not burn all your money. What you pay now goes to building your equity. Let’s say you have picked Harmoni and paid RM61,400. You now have RM61,400 worth of equity in your FIRST property. If you had chosen to finance it via a home loan, you do not own this equity in the first 5 years – your lender does.

This brings us to the next point…

You may get your 20% back

Image via Giphy

Property prices tend to go up year-on-year.  Even if it doesn’t and your property value remains the same at Year 5, you can potentially get your 20% back if you decide to sell it.

And finally, KPKT (Ministry of Housing and Local Government) has come on board to help first time homebuyers pay a portion of the 20% with a loan. Under FundMyHome+DepositKu, a pilot project with KPKT, home buyers can apply for a government loan of up to RM30,000, with repayments due only after 5 years. You can read about the launch here

Within a period of 5 years, you should have a financial plan to improve your credit score and manage your savings, whether you choose to sell the home at Year 5 or to refinance it. 

Interested? Click here for a quick guide on how to buy your first home on FundMyHome.

‘We’ve done nothing wrong but we just can’t get a loan for a house,’ says desperate buyer

SEMENYIH (Feb 20): Housewife Hafiza Abd Rahman, 34, is seeing the light at the end of the tunnel after numerous failed attempts to own a home. With the FundMyHome+DepositKu scheme, Hafiza is hoping it could help make her dream of owning a home come true.


Hafiza (right) breaks down as she tells Zuraida (left) of her plight. (Photo by Low Yen Yeing/EdgeProp.my)

Hafiza who was at the launch of the scheme by Housing and Local Government Minister Zuraida Kamaruddin today, broke down as she told the minister about her desperate attempts at getting a loan to buy a home.

“My husband and I always wanted to own a home after renting for more than 10 years, but we have problems in getting a mortgage loan as we do not have any track record,” she told reporters covering the event.

According to her, she pays everything by cash except for a sedan car of which the loan has already been fully settled many years ago. The couple also does not have any credit cards that could show their credit track record.

Hafiza has been renting for over 10 years in Semenyih, Selangor and over the years, has applied for loans for over 15 houses but none of it was approved.

“We have done nothing wrong, but we just can’t get a loan because we do not have any credit track record,” said the mother of four children.

Hafiza’s husband is a self-employed programmer who is earning less than RM3,000 a month.

Although she’s interested in the FundMyHome scheme, forking out the 20% payment for the house price is an issue for her and her husband.

“With the FundMyHome+DepositKu scheme, there’s a chance that I could own a house for me and my family, I really look forward for that day to come,” said Hafiza.

Under FundMyHome, a homebuyer seeking to buy a RM307,000 home is required to pay only 20% of the purchase price or RM61,400 to own the home. The balance 80% (RM245,600) will be funded by institutions. With FundMyHome+DepositKu, the same homebuyer, if eligible, will receive a loan of RM30,000 from the Government to help with the 20% payment. As a result, the homebuyer only needs to pay RM31,400.

If the buyer is eligible for the 7% bumiputera discount (RM21,490), then he or she only needs to pay RM9,910 to own the home.

*This article is written by Tan Ai Leng for EdgeProp.my

Owning my first home is so easy with the FundMyHome+DepositKu scheme

SEMENYIH (Feb 20):  Over 20 homebuyers have achieved their life goal of owning a home under a new scheme called FundMyHome+DepositKu scheme which was officially launched by the Housing and Local Government (KPKT) Minister Zuraida Kamaruddin in Semenyih, Selangor today.

The loan initiative enables first-time homebuyers under FundMyHome, the flexibility to obtain a loan of up to RM30,000.

The scheme is open to Malaysian first-time homebuyers in the B40 group for the purchase of a home priced RM300,000 and below from the FundMyHome platform. Approvals are subject to final vetting by the ministry.

Under FundMyHome, buyers pay 20% of the purchase price to own a home without bank mortgage and monthly repayments. 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.

Under FundMyHome, a homebuyer seeking to buy a RM307,000 home is required to pay 20% of the purchase price or RM61,400 to own the home. The balance 80% (RM245,600) will be funded by institutions.  With FundMyHome+DepositKu, the same homebuyer, if eligible, will receive RM30,000 from the government to help with the 20% payment. As a result, the homebuyer only needs to pay RM31,400.

If the buyer is eligible for the 7% bumiputera discount (RM21,490), then he only needs to pay RM9,910 to own the home. 

For young married couple Siti Nurain and Ahmad Faizal, who is staying in a rented house in Segambut currently, the scheme has helped them achieve their dream of owning their own home.

They took some time to decide and finally chose to purchase an apartment unit in a township development in Semenyih.

“This is a place that is full of potential, we foresee this development will evolve to become a self-sustaining township,” said Nurain.

Faizal concurs that the mechanism of FundMyHome which enables them to own a house with 20% of the house price with no mortgage loan for five years, provides financial freedom for the couple.


Afiq: But once I found out about the scheme, then I was like ‘ini baru betul- lah’!

For 25-year-old Afiq Abidin, the scheme has helped him realise his homeownership goal in an easy and flexible way.

“I am one of those people who just entered the job market and this is one of the initiatives that offers an easier and more flexible way to own a home without forking out too much downpayment.

“I got to know about this scheme through the Internet and I was sceptical about whether it is true or not. But once I found out about the scheme, then I was like ‘ini baru betul- lah’!” he said.

Currently, he is working in the hotel industry in Johor while his family resides in Cheras. 

“The reason I chose this house in Semenyih under FundMyHome is because it is closer to my family’s house. Moreover, the house is affordable and situated in an up-and-coming area,” he added.

Meanwhile, another buyer Siti Khauzin is now the proud owner of an apartment also in Semenyih that offers all kinds of leisure and wellness facilities.

“We [the family of six people] have been staying in a landed home in Ulu Kelang 10 to 15 years ago, as the children have all grown up and moved out from the house, we are looking for a smaller unit with common facilities,” she said.

Her husband Zailan Ramli said they decided to give FundMyHome a try to fulfill their dream of retiring without being financially overstretched.

Developed by EdgeProp Sdn Bhd, the FundMyHome scheme enables first-time homebuyers to only pay 20% of the property price to own a 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 will be contributed by participating institutions, who share the returns from changes in the future value of the home.

*This article is written by Shawn Ng & Tan Ai Ling and first appeared on EdgeProp.my

FundMyHome+DepositKu scheme launched to ease homeownership among B40 first-time homebuyers

SEMENYIH (Feb 20): The Housing and Local Government Ministry today announced a pilot scheme to ease homeownership among the B40 group. Known as the FundMyHome+DepositKu scheme, the initiative enables first-time homebuyers under FundMyHome, the flexibility to obtain a loan of up to RM30,000, said Housing and Local Government minister Zuraida Kamaruddin who launched the scheme today.

“I’m proud to announce that Harmoni Apartment at Eco Majestic, Semenyih has been selected as the pilot project for FundMyHome+DepositKu. It was a proposal by EdgeProp to help those who find it tough to purchase a home,” said Zuraida.

The scheme is open to Malaysian first-time homebuyers in the B40 group for the purchase of a home priced at RM300,000 and below from the FundMyHome platform. Approvals are subject to final vetting by the ministry.

The FundMyHome platform, developed by EdgeProp Sdn Bhd (EdgeProp), was launched in November last year by the Prime Minister Tun Dr Mahathir Mohamad. FundMyHome brings together first-time homebuyers and institutions in a mutually supportive relationship.

Under FundMyHome, buyers pay 20% of the purchase price to own a home without bank mortgage and monthly repayments. 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.

While it does not substitute the traditional way in which people buy homes, FundMyHome offers lower income Malaysians who do not qualify for a traditional bank mortgage an opportunity to own a comfortable home in a conducive neighbourhood.  

“Since its launch, more than 7,000 users have signed up on the FundMyHome platform. However, the most common issue faced by many of these prospective homebuyers is their inability to raise the required 20% payment,” explained EdgeProp Sdn Bhd chairman Datuk Tong Kooi Ong in his speech. 

Hence FundMyHome+DepositKu is a proposed solution by EdgeProp to the government to address these concerns.

More than 20 buyers have purchased their homes under the FundMyHome+DepositKu scheme so far. At the launch, Zuraida presented some of the buyers with mock keys to their new homes.    

Under FundMyHome, a homebuyer seeking to buy a RM307,000 home is required to pay 20% of the purchase price or RM61,400 to own the home. The balance 80% (RM245,600) will be funded by institutions.

With FundMyHome+DepositKu, the same homebuyer, if eligible, will receive RM30,000 from the government to help with the 20% payment. As a result, the homebuyer only needs to pay RM31,400.

If the buyer is eligible for the 7% bumiputera discount (RM21,490), then he or she only needs to pay RM9,910 to own the home. 

“We understand the difficulties faced by first time home buyers in raising funds for their home purchase. This loan initiative is a natural evolution for FundMyHome that helps lower the entry barrier and at the same time, allow them to build equity in their homes,” Tong said.

“We will continue to innovate towards our goal of making it easier for Malaysians to own a home,” he added.

*This article is written by Rachel Chew for EdgeProp.my

‘FundMyHome made my dream come true!’

SEMENYIH (Jan 17): Thirty-five-year-old Liau Tet Haw has finally fulfilled his long-time dream of owning a home – thanks to innovative property funding platform FundMyHome (FMH).

“I’m so excited to finally have a place to call my own!” beams Liau, who hails from Sabah. “I have always wanted to buy a property in West Malaysia where I have been working for years, Liau shared with EdgeProp.my after signing the sales and purchase agreement here today. 

Liau is buying a unit at the Harmoni Apartment at Eco Majestic, an up-and-coming township by Eco World Development Group Bhd.

The freehold 900 sq ft unit costing RM300,000 offers 3 bedrooms, 2 bathrooms and two parking bays. Some of the common facilities provided include a function room, swimming pool, multipurpose court, children pool, playground and anti-climb fencing.

Although FundMyHome is a newly-introduced platform, Liau said he is very positive and confident with the scheme as it collaborates with reputable developers in Malaysia.

“My friends and family members had asked if I really want to take the ‘risk’ because the FundMyHome scheme seems too good to be true.

“They said it could be a scam!” he recalled with a laugh. “I’m grateful that I made the right decision. Today, I have am finally the owner of an apartment unit in Eco Majestic,” he added.

Liau, like many other prospective homebuyers, had made several attempts but failed to get a bank loan to buy his first home.

“I want to settle down in West Malaysia… It is not easy to get a bank loan. Without FundMyHome, I probably can only continue to rent the unit I am now staying in OUG (Overseas Union Garden, KL) and get nothing at the end of the day.

FundMyHome has made my dream come true,” adds Liau.

Under FundMyHome, Liau just had to pay 20% of the purchase price of the Harmoni Apartment to move in. There is no need for a bank loan as the 80% of the purchase price is funded by institutions. Hence, Liau has no mortgage payments to worry about for the next five years at the end of which he would decide whether to own the entire 100% of the unit or sell it.

“Since Harmoni is already completed, I can do the renovation now and move in soon after the renovation is done. I’m ready to take-up the 80% share of this unit five years later so I’m ready to invest money to renovate this unit,” said Liau.

Launched two months ago, FundMyHome enables a person to buy a property listed on the platform by paying 20% of the price. The remaining 80% will be contributed by institutions keen to fund the acquisition in exchange for a pre-determined yield and a share of the potential value appreciation of the home.

EcoWorld is one of the developers participating in FundMyHome. The developer is exploring the possibility of expanding its portfolio of units on the platform.

FundMyHome is powered by EdgeProp.my  Find out more at www.FundMyHome.com

This article is written by Rachel Chew for EdgeProp.my

Is FundMyHome a ponzi scheme?

No.

A Ponzi scheme is a form of fraud which lures investors and pays profits to earlier investors by using funds obtained from more recent investors.  Ponzi schemes never make legitimate investments.

Under FundMyHome,  all funds raised are invested into a hard, tangible asset – your home. You can see, feel and stay in it.  All returns subsequently payable to you and investors  rests on the property’s value which is transparent and independently verified  every five years.