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SINGAPORE (Nov 5): Instead of taking out a bank loan or mortgage, first-time homebuyers in Malaysia can now seek financial support from a new property investment platform FundMyHome.com.
Backed by the knowledge and resources of EdgeProp.my, FundMyHome is developed by EdgeProp Sdn Bhd by harnessing recent developments in digital technologies such as peer-to-peer platforms and business models in the sharing & subscription economies.
It builds on EdgeProp’s extensive relationships with property development companies to feature approximately 1,000 units of homes in the first phase of its rollout, all of which are priced at under RM500,000 ($165,000).
The platform was launched Sunday by Malaysian prime minister Mahathir bin Mohamad, who at the event presented FundMyHome’s first three homebuyers with keys to their new homes at Eco Majestic’s Harmoni Apartments.
Users of the new platform will only need to fork out 20% of the property’s price in order to gain ownership, with the remaining 80% of the cost to be funded by participating institutions, who in turn share the returns from changes in the future value of the property.
While Maybank Group and CIMB currently comprise the pool of investors funding the remaining 80% of the platform’s listed properties, FundMyHome is anticipating more banks and institutions to participate as investors in the near future.
From high-res to landed properties, all homes listed on FundMyHome are either completed or nearing completion such that buyers are able to move in, and even rent the spaces out to earn rental income soon after the transaction.
Homebuyers may choose to either sell or stay on after a fixed commitment period of five years. Those who wish to stay can refinance their home via FundMyHome, or a normal bank mortgage facilitated through the platform.
In a press release on Sunday, The Edge Property Sdn Bhd highlights FundMyHome as a simpler, safer and faster home ownership arrangement that provides greater emotional and financial security to first-time homebuyers, given the absence of bank loans and monthly payments which therefore helps to reduce their dependence on debt.
Tong Kooi Ong, chairman of The Edge, says FundMyHome not only helps homebuyers, but also developers in selling their properties.
Currently, the properties are being offered by nine participating developers: EcoWorld Development Group Berhad, IJM Land Berhad, IOI PropertiesGroup Berhad, Mah Sing Group Berhad, PKNS (Perbadanan Kemajuan Negeri Selangor), PNB Development Sdn. Bhd., Sunway Berhad, Trinity Group Sdn. Bhd. and UEM Sunrise Berhad.
As an inclusive scheme, FundMyHome includes real estate agents to facilitate the sales process as well as guide clients who are interested in becoming property investors.
“FundMyHome also democratises home ownership and stimulates the housing industry without any Government expenditure or guarantees. Housing is also a critical element of wealth as it operates as a vehicle for household saving,” says Tong.