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Should a home owner, investor and developer go for the scheme? As Tun said, the proof of the pudding is in the eating.

Symphony has reviewed the scheme from publicly available information and FundMyHome’s website. This is our opinion. Do note that there are still a lot of unanswered questions which may change our opinion.

FundMyHome seems investment rather than home ownership is driven. This is because a lot of emphasis is placed on capital appreciation, though FMH says they discourage speculation with the 5 year lock-in period. Based on our analysis also, home ownership is even further away under the scheme at the end of the day (more tomorrow).

The scheme is supposed to help first-time house buyers. We assume that these people have difficulty in getting a housing loan (the lower income group), otherwise, why the scheme.

Macro view.

Remember the 2008 economic crisis brought about by the US sub-prime crisis? The assumption then was that the housing market would continue to appreciate. It did not. The complicated financing structures behind the whole shebang on was simply over-collateralisation of mortgages of people who were of not good credit standing.