Posted by qqq3 > 2018-11-17 11:25 | Report Abuse

Jay...admit it....you are not being honest.....and you are misleading with wrong calculations...eg the wrong calculations in your tables.

Posted by qqq3 > 2018-11-17 11:31 | Report Abuse

please look at your calculations again.....and consider the case where property market is flat at end of 5 years.......

if property market down end of 5 years, no change in calculations needed.

if property market up after 5 years, no big deal as by then the guy will be earning more money and what is a small increase in mortgage vs the benefits of free use without interest costs in first 5 years when still young..

Posted by qqq3 > 2018-11-17 11:31 | Report Abuse

http://tefd.theedgemarkets.com/2018/TEP/20181116zfibs9.pdf

Posted by lizi > 2018-11-17 11:34 | Report Abuse

The general sales pitch be it this scheme or other so called "wealth builder scheme" generally is like this -> "u only need to pay upfront of xxx, then the whole thing is yours" or "u only need to invest upfront of xxx, then the rest of 20 years u enjoy the return"....

buying through this scheme is definitely cost much higher...the 20% u pay is upfront payment for 5% guaranteed return per annum to the investors....basically u pay the interest upfront....no principal payment at all....the worst is, u borrow loan to pay the interest! double jialat....mortgage loan interest is 4.6% only, less than 5%...somemore u need to pay it now, one lump jump compare to progressive pay the interest in normal mortgage....if u understand time value money, you will know u got screw up....

but normally people don't have such financial knowledge...one example is qqq3 which keep praising this scheme...i wonder how a accountant like him cannot understand this....

Posted by qqq3 > 2018-11-17 11:42 | Report Abuse

lizi...the 20% u paid is yours...u can use for downpayment in 5 years time.....

Posted by qqq3 > 2018-11-17 11:44 | Report Abuse

lizi...don't listen to that Jay....he is not responsible to any body.......only regulated corporate bodies like this scheme is responsible for what they say.......

Posted by lizi > 2018-11-17 12:06 | Report Abuse

downpayment of a higher house price? for example, u pay 20% (60k) of 300k house.....5 years house appreciate to 360k....u refinance at 360k.....60k pay back to developer, 240k pay to investor...left with yours so called 60k...and u use as downpayment for 360k refinance loan....end up still own 300k loan...meaning your upfront 20% is like rental lah, or upfront interest payment right? burn money right?

so what is the point? i am saying cost of buying is higher right? 60k burned already, no? you burn 5% per annum versus burn 4.5% mortgage interest per annum?

Posted by qqq3 > 2018-11-17 12:24 | Report Abuse

lizi.....like arguing if u bought a share and the share went up, why didn't you buy more in the first place.!!!!

you bought some thing and gets 20% equity,,,if it goes up , regret u didn't get 100% equity?

in the first place, u dare or not? u got the ability or not? u can start paying the installments at that early stage in your life or not?

Posted by qqq3 > 2018-11-17 12:32 | Report Abuse

buying 100% not always the best results....just like share market....

Cashflows, flexibility, options are equally if not more important.

I think a lot of people who bought 100% in last few years had wished they only bought 20% stake and can still stay there......

Posted by Bruce88 > 2018-11-17 13:04 | Report Abuse

why qqq3 is trying very hard to defend the scheme ?

Posted by qqq3 > 2018-11-17 13:11 | Report Abuse

Bruce88 > Nov 17, 2018 01:04 PM | Report Abuse

why qqq3 is trying very hard to defend the scheme ?
===========

why? because I am a defender of what is right and true..and fair.

Posted by lizi > 2018-11-17 13:12 | Report Abuse

now i understand why so many feel #@!$@## arguing with qqq3....he just want to argue for the sake of argue...

Posted by Jon Choivo > 2018-11-17 13:12 | Report Abuse

But I still don't get where its written that the developer will give 20% discount or set aside 20%

Posted by qqq3 > 2018-11-17 13:13 | Report Abuse

read also what this guy says....



https://klse.i3investor.com/blogs/kianweiaritcles/182633.jsp


and I don't like Jay who goes about misleading people...for what?

Posted by qqq3 > 2018-11-17 13:14 | Report Abuse

lizi > Nov 17, 2018 01:12 PM | Report Abuse

now i understand why so many feel #@!$@## arguing with qqq3....he just want to argue for the sake of argue...
============


not true....I think the Dali guy was very accurate and fair too.

https://klse.i3investor.com/blogs/kianweiaritcles/182633.jsp

Posted by qqq3 > 2018-11-17 13:15 | Report Abuse

me? I think the critics are wrong and didn't think through.....

Posted by qqq3 > 2018-11-17 13:23 | Report Abuse

me? I think it is a good scheme to solve the country problem and innovative scheme to solve young people problems....

Posted by probability > 2018-11-17 13:25 | Report Abuse

Hi Jay, the below is extract from your previous article.

I didn't understand the last 2 paragraph. When the property value is 200k and investors are to get paid 160k (capital)+40k(guaranteed return) = 200k, how can the buyer still obtain his capital of 40k?

who assures the guaranteed return?


............................................

P2P (based on Fund My Home)

1) Buyers will pay RM40k to developer which be put in a trust account

2) Investors will pay developer RM160k

3) Investors will get guaranteed 5% per annum return on RM160k (RM160k x 5%=RM8k per year for 5 years, funded by the trust account)

4) By 5th year, buyers have to switch to a proper mortgage and buy over the investors' portion of RM160k at market rate, failure to do so means the property will be sold.

If the property is worth RM250k, or a 25% appreciation, developer will get the first bite of RM40k. So effectively developer recoup the discount given in the first place and manage to sell the property for RM160k (1st year)+RM40k (5th year). Investors will get the RM160k (capital)+RM8k (capital appreciation 80% x RM250k-RM200k-RM40k)+RM40k (guaranteed return for 5 years). Buyer will get RM40k (capital) +RM2k (20% x RM250k-Rm200k-RM40k)

If the property is worth RM200k only, or zero appreciation, developer still get to sell the property in the 1st year for RM160k, investor will get RM160k (capital)+zero capital appreciation+RM40k (guaranteed return for 5 years). Buyers will get RM40k (capital) +zero capital appreciation

If the property is only RM180k, or 10% depreciation, developer still get to sell the property in the 1st year for RM160k, investor will get RM160k (capital)+zero capital appreciation+RM40k (guaranteed return for 5 years). Buyers will get RM40k (capital) - RM20k capital depreciation

Posted by qqq3 > 2018-11-17 13:31 | Report Abuse

jay focus on this thing as if it is a speculative scheme.....the fact is, it is not a scheme for speculations.

it is the existing traditional mortgages that is 10 times geared that is the perfect vehicle for speculations.

Posted by qqq3 > 2018-11-17 13:34 | Report Abuse

probability...under this scheme....the developer will get 100% of his selling price if the thing go up by 20% end of 5 years...if it stays flat, the developer get 80% of the selling price.

meaning, there is incentive for developer if the project becomes a good popular project.

Posted by probability > 2018-11-17 14:02 | Report Abuse

ok thanks qqq3

posted by qqq3 > Nov 17, 2018 01:34 PM | Report Abuse

probability...under this scheme....the developer will get 100% of his selling price if the thing go up by 20% end of 5 years...if it stays flat, the developer get 80% of the selling price.

meaning, there is incentive for developer if the project becomes a good popular project

Posted by qqq3 > 2018-11-17 14:02 | Report Abuse

everybody in i3 wants to be a critics...why? does it make u look more intelligent to be critics...even if u are wrong? or worse , like this jay here who compiles a misleading table.......

Posted by stockraider > 2018-11-17 15:41 | Report Abuse

Correctloh....the fundmyhome scheme is a speculative investment products, it is not genuinely helping people to own real property properly loh.....!!

Posted by qqq3 > 2018-11-17 15:48 | Report Abuse

stockraider > Nov 17, 2018 03:41 PM | Report Abuse

Correctloh....the fundmyhome scheme is a speculative investment products, it is not genuinely helping people to own real property properly loh.....!!
===================

you are totally wrong...u want to speculate, go take out a 10 times gearing mortgage.

Posted by qqq3 > 2018-11-17 15:50 | Report Abuse

this scheme reduces the gearing in the economy and actually good for stability and avoids building of speculative bubbles......

it has the opposite effect of what u say, raider.....

Posted by stockraider > 2018-11-17 15:54 | Report Abuse

This myhome financing is a hidden derevative gearing hidden gearing all mainly borne by the young innocent 1st time buyer mah...!!

His 20% deposits is at very big risk loh.....!!

Posted by qqq3 > 2018-11-17 15:57 | Report Abuse

as usual raider...u are your normal self...usually wrong....

Posted by qqq3 > 2018-11-17 15:58 | Report Abuse

there is a 5 years lock in period....that means speculators are not welcomed, not interested...this scheme only appeals to genuine buyers.......

Posted by stockraider > 2018-11-17 16:05 | Report Abuse

5 years lag period just delay the unavoidable the buyers coming potential lost of big monies loh....!!

If a buyer cannot even afford to service the loan, what the heck he must own a property which a long term commitment loh....!!

Posted by qqq3 > 2018-11-17 16:07 | Report Abuse

and those with business sense....take up a big block.....gets rental income for 5 years and at the end of the period review again....option to sell, or to refinance......

business sense always rules....there will be some business men who will go far who makes the right decisions......

Posted by Jay > 2018-11-17 16:08 | Report Abuse

@qqq3 I will respond to you one last time, I'm challenging you to state your facts from your point of argument, or even better, correct any loopholes in my articles, then we can have a discussion.

otherwise, you are simply a nuisance and stop wasting other people's time who may have read your comments

Posted by qqq3 > 2018-11-17 16:08 | Report Abuse

stockraider > Nov 17, 2018 04:05 PM | Report Abuse

5 years lag period just delay the unavoidable the buyers coming potential lost of big monies loh....!!
============


what is so unavoidable? 5 years...5 years most salaried people earns much more in 5 years time.

Posted by Bruce88 > 2018-11-17 16:10 | Report Abuse

Where got 5yr ? only 3yrs after minus 2y for construction !

Posted by Jay > 2018-12-30 23:35 | Report Abuse

@Jon Choivo it's not explicitly written in the website, but it was mentioned in the earlier version FAQ. the last two weeks' The Edge Weekly also explained how the 20% will be set aside and potentially recouped

Posted by qqq3 > 2018-11-17 16:11 | Report Abuse

jay...go and revise your figures, otherwise u are just being dishonest.......a lot of literature available in public domain now......

Posted by qqq3 > 2018-11-17 16:13 | Report Abuse

y Bruce88 > Nov 17, 2018 04:10 PM | Report Abuse

Where got 5yr ? only 3yrs after minus 2y for construction !
=============

Bruce....what is available in the platform are a lot of completed units.......

Posted by Jay > 2018-11-23 11:55 | Report Abuse

@probability there are 2 separate transactions

Transaction 1
Pay- RM160k by investor, RM40k by buyer
Receive - RM160k to developer, RM40k set aside for investor

Transaction 2
Pay-RM200k new buyer
Receive-RM160k to investor, RM40k to buyer

Investors' RM160k + RM40k, the RM40k comes from the RM40k in transaction 1 set aside by developers to pay investors over 5 years, not to be confused with transaction 2

Posted by pussycats > 2018-11-17 16:25 | Report Abuse

I believe in this universal principal: Nothing in this world is free of charge, accept given by your parents to you.

Do u think, the developer first thinking is how to help 1st time housebuyer? No,... Devoloper first priority is to sell all his unsold houses to rakyat lah.

Posted by Jay > 2018-11-17 16:27 | Report Abuse

@qqq3 care to point out which figures are wrong? I have definitely pointed out clearly the misleading figures provided by FundMyHome. Anyone with a brain, basic financial knowledge and some common sense would be able to tell that I'm showing the truth, unless you lack all of that

for someone with zero points to rebut my article, you are certainly very persistent . which begs the question, are you somewhat involved in this scheme?

Posted by qqq3 > 2018-11-17 16:53 | Report Abuse

jay...your table....very naughty.....your tables very misleading......u are simply mixing untruths and falsehoods in your table....and I am not related to the scheme......I suggest you look at your own tables first........

Posted by probability > 2018-11-17 17:04 |

Post removed.Why?

Posted by qqq3 > 2018-11-17 17:06 | Report Abuse

Scenario 1

1. The guy actually qualifies for a loan

well, he wants to take up full mortgage....and he qualifies, let him go ahead....the scheme is devised for those who complains bankers reject their applications....In terms of calculation, over the whole period, there should be no difference in total sums paid........But what this scheme offers is cashflow advantage in the first 5 years......when his salary is low.

Posted by qqq3 > 2018-11-17 17:12 | Report Abuse

Scenario 2

1. The daughter really needs to grow up and stop relying on parents

u are very naughty here....Parent money , u just away from your mortgage calculations....

what the scheme can do is to provide financing for 20% over 5 years, changed to the 20% equity.....

Still better cash flow compared to rental or full mortgage instalments

Posted by qqq3 > 2018-11-17 17:14 | Report Abuse

jay...u are taking this scheme as a scheme for speculations....but that is never the intention of this scheme.

the intention of this scheme is to assist in cashflows.......and if u are not happy with the project, its location and its price, u don't have to buy.......

Posted by qqq3 > 2018-11-17 17:17 | Report Abuse

jay...this guy is independent enough...and clear enough....


https://klse.i3investor.com/blogs/kianweiaritcles/182633.jsp


and not biased like you while u are lost in your own world.....

Posted by qqq3 > 2018-11-17 17:24 | Report Abuse

pussycats I believe in this universal principal: Nothing in this world is free of charge, accept given by your parents to you.

Do u think, the developer first thinking is how to help 1st time housebuyer? No,... Devoloper first priority is to sell all his unsold houses to rakyat lah.
===============


yes, developers want to sell...u don't have to buy if u do not think it is right for you......what this scheme does is.....sharing the risks...developers only gets 80% if the market is flat and 20% go to the bankers as yield.

Posted by qqq3 > 2018-11-17 17:41 | Report Abuse

yes, developers want to sell...u don't have to buy if u do not think it is right for you......what this scheme does is.....sharing the risks...developers only gets 80% if the market is flat and 20% go to the bankers as yield.

the truth, the real truth is that for the first 5 years, the young buyer do not have to pay interest on a mortgage loan....the interest is being paid by the developer to the bankers out of the 20% retention sum.

Posted by qqq3 > 2018-11-17 17:51 | Report Abuse

Personally I think there is no stopping this thing....The SC will be issuing guidelines very soon.

More people can afford , faster the economy can recover. More p2p under a regulated scheme, the public can also invest with higher than FD returns and got downside protections......

It is up to the SC to come out with guidelines that will protect the buyers and investors against fraudsters and unreliable people.....

Posted by qqq3 > 2018-11-17 17:54 | Report Abuse

but I like what Tong says...keep an open mind...understand the scheme......

Posted by Jay > 2018-11-17 19:06 | Report Abuse

@qqq3
Scenario 1
1. one of the key element for the whole scheme to work is property to appreciate. if the guy thinks the property will appreciate and he qualifies for a loan, why isn't FundMyHome advising him to buy a property outright and enjoy 100% upside?

2. what cashflow advantage? the example is asking the guy to get personal loan for the 20%. so instead of getting a mortgage loan at 4.5% interest, they are asking people who qualifies for mortgage to get personal loan at 8% and above

Scenario 2
1. I did not adjust anything. the calculations are as shown in the example provided by FundMyHome, except under mortgage, downpayment of 10% instead of 20% is used (because that's what happens in real life)

2. relying on parent's money is not called equity. if not, by that logic, we can just ask all parents to buy a house for their child and that will probably solve a lot of first-time housebuyer problem.

even if the scheme is not to fuel speculation, its selling point (like no monthly payment needed) is fueling speculative behavior among first time homebuyers. remember the first buyer in FundMyHome launching? first year working, no savings, rely on parents to come up with the 20% for a house that he's not even sure if he's gonna stay in it (i.e. he has no real need for the house). if this is not speculative, I don't know what is