THE FundMyHome scheme is not meant for low- to middle-income earners, said The Edge Property chairman Tong Kooi Ong, in response to growing criticism that the home ownership plan would not benefit young, first-time homebuyers.

Tong, who is also chairman of the scheme, said it was not a form of affordable housing but was aimed at making home ownership possible for those unable to qualify for a housing loan.

“Some people think that our role is to supply housing to everyone, but we can’t. How can someone with a monthly salary of RM1,000 or RM1,500 with two children have RM60,000?

“Housing for the poor is the responsibility of the government agencies, not the private sector.

“FundMyHome is an alternative choice, not the main solution to the issue of home ownership,” Tong was quoted as saying by the Malay daily Utusan Malaysia.

The FundMyHome.com portal was launched on November 4 and has recorded some 4,000 enquiries.

Under the private-sector driven initiative, the buyer puts down 20% of the property’s price, and  Maybank and CIMB make up the remainder and share the returns when the property appreciates in value.

The 20% contributed by the homebuyer is placed in a trust account and used to pay off the 5% annual investment return to the banks for a five-year period, after which the buyer will have 20% equity in the property.

The buyer can then choose to sell the home, buy out the remaining portion of the property at market price, or refinance the home either via FundMyHome or a bank mortgage.

FundMyHome is also offering about 1,000 units of homes priced up to RM500,000 from nine established developers Eco World Development Group Bhd, IJM Land Bhd, IOI Properties Group Bhd, Mah Sing Group Bhd, Selangor State Development Corp (PKNS), PNB Development Sdn Bhd, Sunway Bhd, Trinity Group Sdn Bhd, and UEM Sunrise Bhd.

Last week, Tong refuted allegations that the FundMyHome scheme would result in a subprime crisis caused by overbearing debts, saying the scheme would reduce bank mortgages by using equity, and offer affordable homes to the people. – November 16, 2018.