FundMyHome - Malaysia's new property crowd funding review
Hot on the heels of the 2019 Budget speech, the EdgeProperty together with the Government, developers and 2 major Banks (Maybank and CIMB) announced a new scheme to "crowdfund" property purchases called FundMyHome So let's break it down in point form: It's not a traditional purchase transaction. "Buyers" put down 20% of the property price. For the next 5 years, they can stay in the property or rent it out - there are no details on any restrictions on renovations or major structural changes. You can renovate. There is nothing more to pay, no rent no interest. 80% of the remainder is funded by the 2 banks (hence, where is the 'crowd' in this so-called crowdfunding scheme?) At the end of the 5 years, the buyer can either sell the unit or take up a normal mortgage to purchase the unit in the conventional sense If he sells it and there has been an increase in value - he gets to keep 20% of the profit while 80% goes to the 'investor'. I