Homebuyers under the FundMyHome scheme not only has the opportunity to own a home at only 20% of the house price but could also tap the robust property market to enjoy investment return, said The Edge Group Chairman Datuk Tong Kooi Ong.

The innovative and inclusive homeownership scheme developed by EdgeProp Sdn Bhd, brings together homebuyers, institutions and developers under one roof to improve the overall real estate ecosystem.

According to Tong, in his presentation at the launch of FundMyHome today, the three main stakeholders in the industry have their own problems, for instance, homebuyers have difficulties in securing end-financing; developers want good sales and investors are looking for better return.

“FundMyHome is created to provide a game-changing solution to these challenges faced by first-time homebuyers. It enables homeownership without a bank loan, which means there will be no monthly repayments,” he added.

Through this platform, homebuyers who couldn’t get the mortgage loan could purchase a unit featured on FundMyHome.com with just 20% payment of the property price.

The balance 80% of the cost of the property is contributed by participating institutions, who share the returns from changes in the future value of the homes.

For the developers, they could get the 80% from the institution while the remaining 20% could be collected when the property is sold on the fifth year onwards, albeit only if the selling price is higher than the initial selling price.

Currently, the participating institutions contributing to the 80% portion of the home price are Maybank Group and CIMB.

According to Tong, for the investors, they could enjoy a 5% return from their investment.

Currently, EdgeProp.my is in discussions with the Securities Commission and Bank Negara Malaysia to finalise the terms and conditions as well as the framework of FundMyHome.

FundMyHome is open to all Malaysian residents above 18 years old, a first-time homebuyer and a non-bankrupt.

All homes on FundMyHome.com are either completed or nearing completion, enabling most buyers to move in soon after the completion of the buying process.

Buyers may also rent their homes out to earn rental income which could help to free up their funds for other pressing commitments and reduce their dependence on debt.

Under the FundMyHome concept, the homebuyer can choose to either sell or stay on after a fixed commitment period of five years.

Those who wish to stay can refinance the home via FundMyHome or with a normal bank mortgage. All this will be facilitated through FundMyHome.com.

Source: EdgeProp.my

The government will allow the setting-up of property crowdfunding  platforms which will serve as an alternative source of financing for first time homebuyers, said Finance Minister Lim Guan Eng yesterday.

The first exchange is expected to go live in the first quarter of 2019, after all necessary approvals are obtained from the Securities Commission.

In tabling Budget 2019, Lim said this is a demonstration of the Pakatan Harapan government’s willingness to explore new, technology-enabled and innovative mechanisms to solve the country’s housing problems.

The platform will be regulated by the Securities Commission under the peer-to-peer financing framework.

Under this model, the buyer will be able to acquire a selected property for 20% of the price of the property, while the balance 80% will be fulfilled via potential investors who are interested to fund the acquisition in exchange for the potential value appreciation of the property over a particular period of time.

“In simple terms, Ah Chong, for instance, will be able to own and stay in a RM250,000 property by paying RM50,000 without having to procure a mortgage. Ali who might only be interested in investing in a new property for capital appreciation will fund the balance of the RM200,000 via the peer-to-peer Property Crowdfunding exchange,” he explains.

He noted that this financial innovation will be the first in the world, and if successful, will transform the affordability of homes for first-time home buyers in the country.

Source: EdgeProp.my

Penang will have to wait a little longer to know whether the state will get federal allocations for its projects.

A check on the 2019 Estimated Federal Expenditure of several ministries at www.treasury.gov.my after Finance Minister Lim Guan Eng tabled the budget yesterday shows no mention of specific development funds for Penang.

In the funds for the Transport Ministry’s air transport projects, no mention was made of Penang In­­ternational Airport while RM70mil is allocated to Sabah’s Labuan and Kota Kinabalu, and Sarawak’s Kuching, Miri, Sibu, Mukah and Padang Terbang Bario to develop or expand their airports.

The state government has repeatedly called for the airport’s expansion because it is handling more passengers per year than it was designed for.

The light rail transit component of the Penang Transport Master Plan was also not singled out while Keretapi Tanah Melayu Bhd is receiving RM2.95bil to increase its capacity and Sabah gets RM33.6mil to improve its trains.

Almost RM668mil is allocated to People’s Housing Projects (PPR) under the Housing and Local Government Ministry but the listing did not specify whether the focus is on Penang. Out of the 110,000 PPR flat units in the country, only 999 are in Penang.

Almost RM598mil is allocated for flood mitigation projects out of RM8.7bil requested by the Water, Land and Natural Resources Ministry.

State Flood Mitigation Committee chairman Zairil Khir Johari gave assurance that the RM150mil Sungai Pinang Flood Mitigation Project was a part of the allocation because the minister previously declared that it had been approved.

“The process of calling for an open tender has begun and we expect it to start next year.

“But there are other flood mitigation projects that Penang needs and we are hoping they will be approved too. We will have to look into the details of the federal allocations later,” he said.

Federation of Malaysian Manu­fac­turers Penang chairman Datuk Ooi Eng Hock said he did not expect much good news for Penang in the budget, “so I’m not surprised”.

“There is nothing much for the economy. The focus was on the B40 group. There is some benefit to small and medium industries.

“It is a mild budget as far as Penang is concerned,” he said.

On how the levy on passengers flying out of the country will affect business travellers, he said it was not a hefty sum.

“Just think of it as contributing to Tabung Harapan every time you pay the levy to fly abroad,” he said with a smile.

Beginning next year, all flight passengers will pay a levy of RM20 when flying to an Asean destination and RM40 to other countries.

Source: TheStar.com.my

Below are Budget 2019 highlights for housing:

1. RM1.5bil to build and complete affordable homes under the People’s Housing Programme, Civil Servants Housing Project, PR1MA, and Syarikat Perumahan Nasional Bhd.

2. RM1bil fund to be set up by the Central Bank of Malaysia (BNM) for those earning under RM2,300 per month to buy affordable houses priced at RM150,000 and below. The fund will be made available for two years or until the fund is depleted through AmBank, CIMB Bank, Maybank, RHB Bank and BSN at an interest as low as 3.5%.

3. RM25mil will be allocated to Cagamas Berhad to prepare a mortgage guarantee (jaminan pajak gadai) to ensure that first time house buyers with a household income of up to RM5,000 will receive a higher financing, including for their deposit. This is expected to lower the cost between 7% and 11% for buyers, apart from the discounts given by developers.

4. Stamp duty exception for the first RM300,000 on the property transfer letter (surat cara pindah milik) and loan agreement for first time house buyers purchasing a house priced at a maximum of RM500,000 for two years until December 2020.

5. Financing under the Public Sector Home Financing Board (LPPSA) will be extended from 30 years to 35 years for first-time financing and 25 years to 30 years for second financing (pembiayaan kedua).

6. RM400 mil will be allocated to improve the living quarters of civil servants such as police and military personnel and teachers.

7. Government is suggesting on an exemption of stamp duty on property transfer letter for first house purchase for houses priced between RM300,001 and RM1mil for the period of six months starting from Jan 1, 2019. This will be part of the National House Ownership Campaign, of which developers have agreed to give a 10% discount to houses under existing projects.

8. Property crowdfunding platform will be allowed, which will be headed by the private sector. Overseen by the Securities Commission, it will allow house buyers to use peer-to-peer lending to finance their purchase.

9. Stamp duty rate for property transfers for properties priced at more than RM1mil increased from 3% to 4%.

10. For companies, non-citizens and non-PR holders, real property gains tax will be increased from 5% to 10%. For citizens and those with PR, real property gains tax will be increased form 0% to 5%.

Source: TheStar.com.my

Niche property developer Runnymede Group of Companies (Runnymede Group) has signed a landmark MOU with Ritz-Carlton, the famed luxury and lifestyle hotel and resort brand, for the management of a luxury hotel and residency units within the Runnymede Place development in Penang, Malaysia.

This nearly five-acre seafront development is located along the vibrant and historic Jalan Sultan Ahmad Shah (aka Northam Road) nestled along Penang’s famous Millionaire’s Row. It is adjacent to the Citibank Building and is just a block away from the E&O Hotel in the prime business district of Georgetown.

Scheduled to open in 2026, the luxury seafront hotel will feature 133 rooms within a 48-storey tower and 18 suites for the historical 3-storey Runnymede heritage hotel building. There will also be a mixed development tower comprising luxury condominiums, an office block and retail units located next to the hotel.

Runnymede Place, with its landmark waterfront development designed by Kerry Hill Architects of Australia, is set to become an iconic landmark in Penang. The late famed architect, Kerry Hill, was personally involved with the planning and design of the entire development. Hill’s enduring architectural legacy is spread throughout Asia, Australia, Europe and China. Among Hill’s accomplishments are the Aga Khan award for the Datai Langkawi Hotel and other awards for luxury resort hotels such as the brand Aman in New Delhi, Tokyo and Shanghai, plus the Lalu Sun Moon Lake in Taiwan and the Desert Palm in Dubai. He was awarded the “Australian Institute of Architects’ Gold Medal” in 2006 and also won the “Best Housing Design” award at the World Architecture Festival in 2012 for Martin No.38, a residential project in Singapore.

Established in 1994, Runnymede Group is well-known for its diverse development portfolio in Penang, Kuala Lumpur and Western Australia. The company’s impressive track record coupled with its financial strength and management expertise has allowed it to become a key player in the highly competitive property development industry.

Runnymede Group has successfully completed several notable developments in Penang, including the KWSP building situated on a two-acre parcel next to Runnymede Place; a military complex; and luxury bungalows as well as courtyard homes as part of The Sanctuary development. It has also developed a retail centre in Kota Damansara leased on a long-term basis to GCH Retail Sdn Bhd, a subsidiary of the Dairy Farm Group-UK, which is listed on both the Hong Kong Stock Exchange and the Stock Exchange of Singapore.

The group’s ongoing projects include The Sanctuary’s Triuni Residences condominiums; a mixed development with service apartments in Ampang; Rossmoyne Residences private villas along the Canning River and the Margaret River Resort – both in Western Australia.

For more information on the Runnymede Group, please contact their friendly team on 03-216 44800 or 04-659 8899 or visit www.runnymede.com.my.