‘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

A good scheme to own a home at lower entry cost, say attendees of FundMyHome public forum

The FundMyHome public forum moderated by EdgeProp Sdn Bhd chairman Datuk Tong Kooi Ong has offered a clearer picture of how the scheme works and has won more support from the public, according to attendees of the event today.

The forum, which was held at the Sheraton Petaling Jaya Hotel, has attracted more than 550 people, with one of the attendees named Rama lauding FundMyHome as a good scheme to help first-time homebuyers to set their foot on the housing ladder with a lower entry cost.

“This is a good scheme in helping young people to own a home. And as a property negotiator for many years, I don’t see this scheme as threatening the [real estate agency] industry.

“I believe this scheme could lower property selling prices for first-time homebuyers and this is a good news for all, including us property agents because we are facing difficulty in selling property due to high property prices,” he told EdgeProp.my after the forum.

Another attendee, David Lim, who claims that he has been investing in real estate for about 20 years, thinks FundMyHome is a “fantastic scheme” for the homeowners as they can gain full ownership of the house with just 20% of the house price in the first five years.

“This is a fantastic deal for the homebuyers as the risk is low for them. If the house prices go down after the fifth year, they can buy it cheaper. So, what is the worst [for them]?” he asked.

C M Lai, who also attended the session, concurred that FundMyHome is an attractive scheme, adding that today’s session was clear in explaining the role of the three main stakeholders — the developer, institute and buyer.

“I came here to know more about this scheme and how it works. For a buyer, it is an attractive scheme, as although you still need to repay your personal loan if you opt for one to come out with the 20% down payment. However, getting a personal loan is easier than getting a mortgage especially when you have just joined the work force,” he said.

“It is also easier to get friends and families to be your personal loan guarantor because the amount is not as big as well. Literally, you can own a home even if you are a hawker and cannot present a financial statement to get a mortgage, or a fresh grad who just started your first job and getting RM3,000 per month,” he elaborated.

Introduced by EdgeProp, FundMyHome allows one to buy a property featured on FundMyHome.com by paying just 20% of the property price.

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 homes.

The holding period is five years which means by the end of the fifth year, a homebuyer will have to choose whether to sell, to own the property (by taking up the remaining 80% share of the house based on market value) through a mortgage or refinance the unit on FundMyHome.

Currently, CIMB and Maybank Group are the participating institutions while nine developers are offering about 1,000 homes priced below RM500,000 to eligible individuals through https://www.fundmyhome.com/.

The FundMyHome platform was launched on Nov 4, 2018 in an event officiated by Prime Minister Tun Dr Mahathir Mohamad.

*Original article appeared in EdgeProp.my, November 18, 2018, by Shawn Ng