EdgeProp: FundMyHome scheme won’t make much money

The FundMyHome scheme requires homebuyers to come up with 20% of the property price. (Bernama pic)

PETALING JAYA: EdgeProp Sdn Bhd says it does not expect to make exceptional gains from the FundMyHome scheme but it will make money just as other property platforms do.

EdgeProp chairman Tong Kooi Ong.

Its chairman Tong Kooi Ong said those who sold their property would pay a commission to the property platform.

“I make money like any other property platform.
So if you sell the property, you have to pay me (FundMyHome/EdgeProp) a commission.

“So in the first round, when a property developer (investor) sells the property, they pay to the agents, they pay to the platform (FundMyHome/EdgeProp).

“I think we will make enough money, I don’t think we will be making huge money, but we will make enough,” he said.

Tong added that the initial idea behind the scheme was not just to sell property.

“I think the idea behind it was also to facilitate and change the (property) ecosystem in Malaysia,” he said.

Tong urged critics of the FundMyHome scheme to keep an open mind on what the alternative home financing platform was aiming to achieve.

He said he was not discouraged by those who preferred to rent as FundMyHome is merely an alternative home financing scheme.

Tong was speaking at a question-and-answer session organised by EdgeProp at a hotel here to answer queries from the public regarding the FundMyHome scheme.

He said he faced many challenges when introducing the scheme.

“My friend told me, it’s like you are trying to juggle a few things at the same time, and all these things (critics) come and disturb you,” he said.

Tong also told critics: “If you don’t have a better idea don’t criticise.

“The proposal is ours, we proposed what we thought could help. We did not exclude the ideas from others.

“If you have an idea, you should propose. If you have a better idea than me, stand up, take your money with you and do it. Do it rather than criticise.”

The FundMyHome scheme has received brickbats since it was launched last month.

Some critics believe it will get first-time home owners into trouble after five years.

Under the scheme by EdgeProp, there is no monthly repayment.

Instead, after a commitment period of five years, buyers can either sell the home, buy out the remaining portion of the property not owned by them at the market price, or refinance the home, either via FundMyHome or a normal bank mortgage.

The scheme requires homebuyers to come up with 20% of the property price which will be placed in a trust account and used to pay off the 5% annual investment return to the participating institutions for a five-year period.

The balance of 80% will be contributed by participating financial institutions such as Maybank and CIMB. - FMT