100k apartment that can rent out at rm650 is very hard to find and bare in mind that EPF could only be withdraw for the 2nd property only if the 1st property is sold. If you rent out the 1st property than you can not withdraw it for the 2nd property when the BLR hikes above EPF return rate.

This post has been edited by jarjar6666: Mar 16 2010, 10:04 PM

Hard to find does not mean cannot find.

Up to each individual to decide how they want to manage their retirement. The apartment will continue to provide steady income to the retiree after retirement whereas according to EPF study, most people finish their entire EPF savings within 5-10 years.

my situation is i have rented out my 1st property and now staying in 2nd property. however i have not taken any epf out before, can i still proceed to take out using the 2nd property as i am staying in there and that this is my first time? or do i have to use the 1st property to take out?

thanks

You can take out for your 2nd property as long as you never take it out before. But why you wanna settle the loan giving the interest rate is 4% and you get more return from epf? Why not wait until the blr increase more since you can take it out anytime?

---

Added on March 16, 2010, 11:31 pmMy rationalization is based on the comparision of taking out to settle loan and let it stay in epf which is 4% vs 5.65%, not comparing with taking it and invest in other areas. With refering to the EPF study, the generation participate in the study which is already >55 now is different then the generation of which most of us belongs to. Most of the people in that generation still does not have much knowledge about planning for the retirement, and whether those that used their epf to invest in stock market, property or business fall inside the category of 'finish their epf' has not been clarified. I don't think the conclusion of the study will valid in 20 years ahead which is the turn of my generation to withdraw the epf.

This post has been edited by jarjar6666: Mar 16 2010, 11:31 PM

oh, i am not settling the loan. i want to put it into a personal account then use it for another new property. i dont think i can take it out if it is more than 3 years from the spa for them to be able to bank in directly into a personal account.
correct me if wrong

Ya, you only can get the money into your personal account for the 1st time.

If i already settle my 1st property without using any withdrawal from EPF, can I withdraw from EPF for my second property from Account 2 without selling my 1st property ??

Yes, you could. As long as you never withdraw before will be fine.

Is it true that we are only allowed to withdraw fr Acount II (no matter how many times) within 3 years from the date of our S&P ?

i am no expert, however from my understanding if you want to withdraw it into a personal account to use directly, it has to be within 3 years from s&p and that it also has to be your first withdrawal. on the other hand, if you withdraw from account 2 and use it to reduce the principle only then there is no time limit. of course the advantages of having the money in the personal account outweigh having it to reduce the principle directly.

2cents