Knight Frank Malaysia lauds the government’s effort to introduce a crowdfunding platform like FundMyHome as another alternative for home financing solution. It has however advised the government to be vigilant in checking the profiles of first time home buyers and fund manages to ensure the mortgage crisis that hit the US over too-easy lending does not happen in Malaysia. Here’s that article in FreeMalaysiaToday.com Knight Frank Malaysia managing director Sarkunan Subramaniam shares that, “However, there is concern that this may fuel overly lenient lending policies, potentially leading to future subprime situation, a lesson drawn from the United States where homebuyers with inadequate financial capacities were able to secure mortgages.”
He urged for the Securities Commission to be watchful, especially for some crowdfunding platform managers who may be tempted to build up their portfolios too quickly by lending to first-time home buyers with compromised financial credibility. This will disrupt the property crowdfunding platforms. He is hopeful that these funds’ portfolios be reviewed regularly to ensure that the investors’ investments are secured. Here’s that article in FreeMalaysiaToday.com
I think it is important for the authorities to understand Sarkunan’s concerns. 6 months ago, I wrote something similar. Lending to everyone is not helping the borrower, actually. Actually, our former Bank Negara Governor, Tan Sri Dr. Zeti Aziz said something similar too: Stay Safe, Buy within affordability and stop bubble from building I believe everyone wants a vibrant property market. However, we also want a market which is going to be resilient and long-lasting too. This is especially for first-time home buyers who will have nothing to fall back on or lose a lot of their precious investment resource and time if their first one does not yield positive results. Happy understanding.
written on 12 Nov 2018
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