Monthly income: RM 3k
EPF monthly contribution by employee at the rate of 11%: RM 330
EPF monthly contribution by employer at the rate of 12%: RM 360
Annual contribution is RM 8280.

Let say Account 2 amounts to 40%: RM 3312 (RM 276 monthly) or if 30%: RM 2484 (RM 207 monthly)

This post has been edited by David83: Sep 8 2007, 07:25 AM

I'm eyeing for a low or medium cost housing project.

I can't get you. Similar class of tenants/buyers? Meaning?

What needs to be caution?

Then if you buy high end or range condominimum, those stay at there will be majority same class of tenants too.

Well afforadable families, professionals and etc.

Housing loan scheme won't affect EPF earnings

PUTRAJAYA: The freeing of RM9.6bil in Employees Provident Fund contributions to pay for the purchase of homes by the public will not affect the earnings of the body.

Second Finance Minister Tan Sri Nor Mohamed Yakcop also put paid to fears that this mechanism to make it easier for every Malaysian to own a home would lead to those retiring not having enough funds to cover their expenses in the future.

"The purchase of a home is a good form of investment and not consumption.

"The buying of homes should not be put off by people until they retire. This is because the prices of homes would have appreciated so that by then, these would be too expensive.

"Housing is the one thing we want all Malaysians to have," he told reporters in a briefing on the Budget tabled by Prime Minister Datuk Seri Abdullah Ahmad Badawi in Parliament on Friday.

Nor Mohamed said EPF had indicated that it was very happy to assist with the Government's announcement to let contributors use the amount in Account 2 to offset or pay their housing loans.

This means that a working person with a salary of RM2,000 can use the RM138 estimated to be the monthly contribution to Account II to offset the housing instalment.

"This mechanism will enable a lot of people in the lower and middle income group to own their own or even second homes," said Nor Mohamed.

EPF posted a gross investment income of RM13.3bil in 2006 and an asset size of around RM290.2bil, with around 11.4 million members. It also recorded total contributions RM26.2bil.

URL: http://biz.thestar.com.my/news/story.asp?f...53&sec=business

Cannot ... house loan only!

EPF withdrawals to go into members' bank accounts

KUALA LUMPUR: The EPF monthly withdrawal for reducing housing loans will be credited directly into the contributor's personal bank account and not to the lending bank.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the money could then be used to either help offset the housing loan instalment or for the contributor to afford a bigger or more expensive house.

"It is a simple mechanism. For instance, let's say your monthly salary is RM2,000, 30% of your EPF contribution will go to Account 2.

Your monthly housing loan repayment is now RM500 and you can use RM138 to offset the housing loan instalment. The RM138 will be credited to your bank account every month.

"In another situation, you are thinking of buying a house, but you can only afford to pay RM400 a month. With RM138 withdrawn monthly from EPF, you can afford to buy a bigger house and pay RM538 monthly," he said.

He said contributors needed to go to the EPF to apply for the monthly withdrawal only once, and it would directly credit the money to their personal account every month.

"The condition is that the contributors must have a housing loan," he added.

Nor Mohamed said the RM9.6bil that would be taken away from the EPF to be put into the contributors' pockets every year was good for consumption-led growth.

On worries that the monthly withdrawal would be subject to abuse like the EPF computer withdrawal scheme that was a flop, he said: "Let them use the money. It is all right. The money is in their pocket. But they must have a housing loan."

"There are no worries. For the computer scheme in the past, some contributors bought computer slips rather than computers.

"In this case, there is no downside. They cannot cheat. We can check with the bank if they have a housing loan. A person who doesn't have a housing loan won't be able to withdraw his savings from Account 2," he added.

Nor Mohamed was asked to elaborate on the EPF Account 2 withdrawal scheme for monthly housing loan repayments after delivering his keynote address at the Malaysian Newspaper Publishers Association's seminar titled "Making Sense of The Media Collusion" here yesterday.

Last Friday, Prime Minister Datuk Seri Abdullah Ahmad Badawi, when unveiling Budget 2008, announced that the Government would allow EPF contributors to make monthly withdrawals from their Account 2 balances to pay off their housing loans from Jan 1.

He said the move would benefit five million active EPF contributors.

He said it would also enable them to own better houses and lessen their monthly financial obligations.

Nor Mohamed said if there was a change in the loan status, the bank could let the EPF know about it.

The EPF said it would announce further details on the matter in December.

URL: http://thestar.com.my/news/story.asp?file=...=nation&focus=1