PUTRAJAYA (July 24): FundMyHome (FMH) has proven that it is possible to make homeownership more accessible to Malaysians, especially those in the lower income group, with the signing of sale and purchase agreements by the first batch of homeowners under the FMH platform.
In an event held at the Ministry of Housing and Local Government (KPKT) in Putrajaya today, 16 participants from the first batch received their documents from the ministry under the FMH+DepositKu scheme.
Under the FMH platform, aspiring homebuyers only pay 20% of the property price to own a home while the remaining 80% of the price will be contributed by participating institutional co-investors, who share the upside in the future value of the property.
During the launch of the platform last November, Prime Minister Tun Dr Mahathir Mohamad challenged EdgeProp, the developer of FMH, to prove that such a “fantastic idea” can be proven viable.
“I hope and believe that this scheme could help encourage homeownership,” Mahathir had said at that time.
“Today, we are delighted to witness the realisation of fellow Malaysians’ dream in finally owning a place they can call their own,” EdgeProp Sdn Bhd (EdgeProp) chairman Datuk Tong Kooi Ong said in his speech.
“The Prime Minister reminded me that the proof of the pudding is in the eating, I think today we have delivered it,” he added.
Fast forward to today, the FMH platform has attracted more than 8,000 people who are interested in buying a home on the platform, including the 16 buyers present at the event.
Tong said FMH is “agnostic” when working with developers, and in future it would work with more developers to secure more homes for FMH.
Tong noted that the key challenges to homeownership for many Malaysians today, especially the working class living in the city, are the inability to get a mortgage and to pay the down payment for a home purchase, which can be attributed to two main reasons — buyers’ incomes are too low and home prices are too high.
Hence, the FMH platform is launched to help those who are unable to own a home due to their inability to obtain a mortgage, he said.
“Going forward, FMH will make homeownership possible for many more Malaysians, as it has proven today,” he added.
He is also glad that KPKT is offering financial aid to the buyers under the FMH platform through the FMH+DepositKu scheme.
DepositKu will fund up to 10% of the home price for qualified buyers, subject to a maximum of RM30,000.
This means that for a RM300,000 home, homebuyers need to only raise 10% down payment or RM30,000, while the other 10% will be from the scheme with the balance 80% from the investors of the FMH platform.
For bumiputera buyers, if the bumi discount entitlement is available, they will pay even less.
With a 7% bumi discount, first-time bumiputera buyers only need to pay RM9,000 to buy a RM300,000 home.