SEMENYIH, Nov 5 – The Employees Provident Fund (EPF) and its members will be allowed to put money in privately-driven property crowdfunding platforms, an additional financing option for first-time housebuyers.
Prime Minister Tun Dr Mahathir Mohamad said EPF members would be allowed to withdraw their savings to invest in a peer-to-peer purchase.
“EPF can invest if it sees a potential in property appreciation. You see, properties or land usually will appreciate.
“One of my drivers bought a house for RM25,000 some years ago and now someone is offering RM130,000 for the property.
“Back then, you can buy land in Kuala Lumpur for RM100 per sq ft. Now, it can go up to RM7,000 per sq ft,” he said after launching the FundMyHome Programme developed by EdgeProp Sdn Bhd.
Present were Finance Minister Lim Guan Eng, Deputy Local Government and Housing Minister Datuk Raja Kamarul Bahrin Shah Raja Ahmad, Selangor Menteri Besar Amirudin Shari, The Edge chairman Datuk Tong Kooi On, Eco World Development Group Bhd founder Tan Sri Rashid Abdul Manaf, Maybank Group chief executive officer (Global Banking) Datuk Muzaffar Hisham and CIMB Investment Bank Bhd chief executive officer Datuk Kong Sooi Lin.
The peer-to-peer financing framework, which was announced by Lim when tabling the 2019 Budget, allows buyers to purchase selected properties at 20 per cent of their price.
As for the remaining 80 per cent, it would be funded by potential investors in exchange for potential appreciation in value over a period of time.
The Securities Commission has been tasked with facilitating and regulating the process.
Dr Mahathir said he was initially sceptical of the peer-to-peer initiative, but opted to remain positive about its outcome.
“It can provide returns to investors within a certain period upon selling their shares.
“This is truly a fantastic scheme, so fantastic that I cannot believe it. Maybe I will believe it when it yields success,” Dr Maha-thir said to laughter from those around him.