In brief: Malaysia teams up with The Edge on property financing portal

[Malaysian] Prime Minister Mahathir bin Mohamad today launched an innovative new property platform called FundMyHome.com, making it possible for more Malaysians to own their first home.

Developed by EdgeProp, FundMyHome.com brings together first-time homebuyers and institutions in a mutually supportive relationship. Buyers pay 20 percent of the property price to own the home, choosing from a wide array of high-rise and landed homes of different prices and locations showcased on FundMyHome.com. The balance 80 percent of the cost of the property is contributed by participating institutions, who share the returns from changes in the future value of the home.

Source: The Edge

The introduction of a peer-to-peer lending platform aimed at helping first-time homebuyers was included in the government’s national budget last week.

CIMB and Maybank are the participating institutions that will contribute towards the externally funded 80-percent portion of the house price, with more expected to sign up in the future.

The site – developed by finance and real estate media platform The Edge – will list about 1,000 homes costing less than US$120,000 during the first phase of its rollout. All properties listed will be completed or near completion, and buyers looking for rental income will be allowed to “buy to rent” through the portal.

“Besides helping homebuyers, it helps developers to sell their properties,” said Tong Kooi Ong, chairman of The Edge. “It also includes estate agents to facilitate sales and to guide their clients interested in becoming property investors. FundMyHome also democratises home ownership and stimulates the housing industry without any government expenditure or guarantees.”

Currency converted from Malaysian ringgit. Rate: US$1 = RM 4.16