SEMENYIH, Selangor (Nov 4): The heavy reliance on debt to finance on-going lifestyle is the main obstacle for consumers to own their homes, The Edge Media Group chairman Datuk Tong Kooi Ong said today.

He said homes are not affordable is not due to a lack of supply as developers would be only too happy to build and sell and profit from more homes.

"The real crux of the problem is the fact that consumers the world over, including in Malaysia, have relied too heavily on debt to finance their lifestyle. Because they are already indebted and paying interest on those debts, they can no longer borrow to buy a home," he said at the launch of FundMyHome.com, a new property crowdfunding platform, by Prime Minister Tun Dr Mahathir Mohamad here.

Tong pointed out that although many countries have taken all sorts of administrative and fiscal measures to curb speculation and dampen the rise in property prices -- including a ban or a tax on foreign buyers, vacancy tax and tax on multiple house ownerships, the results are mostly unsatisfactory. 

"The aim to make homes more affordable is worthy. But even where measures have succeeded in depressing property prices, the net effect on citizens may not be wholly positive with the consequential destruction in wealth, foreclosures and bankruptcies causing the loss of jobs and income. This actually makes home ownership even less accessible," he said. 

Therefore, Tong said property crowdfunding portals such as FundMyHome could play a role in facilitating homeownership.

"FundMyHome is an inclusive scheme. It leaves out no one who are now part of the ecosystem. Besides helping home buyers, it helps developers to sell their properties, both currently unsold and future launches. 

"It includes estate agents who are facilitators for their house buyers and also in guiding their clients who are interested to become property investors. We work with banks and institutions to provide financing or in creating structured products for their customers," he said. 

"Once the Securities Commission Malaysia approves the property exchange, the man-on-the-street will have a new asset class to invest in, with yield, low risk and potential capital gains over the long-term," he added. 

FundMyHome is developed by EdgeProp Sdn Bhd, a subsidiary of The Edge Media Group.