Draw Out Your EPF Savings For a Dream Property in Malaysia

Everyone wants a Malaysia property since hikes have been seen in the real estate industry – Even burial grounds are now expensive. But what does it take to own a property in Malaysia? Would it be low on mortgage or will your EPF help you cover your dream house?

 

Employers Provident Fund (EPF) or Kumpulan Wang Simpanan Pekerja (KWSP)

Tearing apart your lifetime savings from your hard-earned cold, hard cash could be a disastrous moment. While your EPF (KWSP) gave itself a short relief from funds, you’d want to know what will be best for you and when should you ever even use your EPF savings for anything at all.

The regular average Malaysian saves up to at least RM$100,000 during his period of lifetime savings from work – Provided they start up in their twenties and climbed up the ladder to at least an Executive level before they retire at the maximum age of 56 (we presume it’s government). So what are the EPF processes?

 

Come up with a rough budget

This should include your monthly payments. But you need to factor in the amount you can withdraw from your EPF. A year after the first withdrawal, you are allowed to withdraw from your Account 2 EPF savings to reduce your housing loan on yearly basis. It’s almost similar to any other Malaysia home loan, and you can use this home loan calculator to calculate any necessary home loan elements that you might not think of at the moment.

 

      Remember that you also have legal and stamping fees for your S&P and housing loan agreements.

Determine the location of your house

If you’re staying in for a long time, you might as well select a Malaysian property that is comfortable to live in. If you’re looking to rent the house out or ‘invest’ in it, then selecting a land where it’ll more like to ‘appreciate’ in value rather than ‘depreciate’ would be most appropriate.

 

Buying a property in Malaysia

Obtaining a new house/property would be very much more desirable since it’ll be cheapest that way — Rather than waiting; then the value appreciates. Construction time varies, and it may take up to two years so don’t rush into things. However in the meantime, you’ll have to keep up with your rent, interest rate and service all sorts of home loan fees until the full home loan is ready (upon completion of construction). Buying a completed house on the other hand eliminates waiting time, but you might have to pay for renovation works.

  • EPF savings cannot be used for repair or renovation works.
  • EPF allows you to draw more money for your 2nd home, provided you sold your 1st.
  • Settle for a home you can afford now, then you can sell the home at an appreciated value then buy your 2nd home later after.

 

Article Source: EzineArticles.com
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