[Click here for Chinese version]
I think when reached age 20~30 year old, most of the people will start to think of buying a house. Is normal to have such thinking. To purchase a house need to consider lots of things, most of things where you never think of before…
Let’s see, if you wish to purchase a house which cost you about RM 100K, you need to pay down payment about RM 10K. RM 10K can be small amount to certain people, and to certain people it is a huge amount. Maybe you will say it can be covered by KWSP (Employees Provident Fund). As a fresh grad who just work about few years, do you think you have lots of EPF money?
How much Do you need to use EPF Money?
EPF is a money which deducted from your salary each month by 11% and at the same time, your employer will contribute 12% too into your EPF account. Let’s says your salary is RM 2K, each month will deduct RM 220 and your employer will contribute RM 240. Which means you will have RM 460 EPF money into your account.
Do think it is small amount, it can be huge amount when time goes…
In EPF account separated into acc1(70%) and acc2(30%), the account which we can withdraw to purchase house is acc2.
Let’s see if your salary is RM 2K,how much EPF will you have after a year working?
Each Month – RM460
Each Year – RM460 x 12 = RM5,520
Acc2(30%) – RM1,656
(Above mentioned only consider gross salary)
As you can see, you can only withdraw RM1,656 for the down payment, it is far away from RM 10K. You need about RM 10K for down payment, so how about we consider you already work for 5 years. Let’s multiply by 5years, and see how much do you have?
5 years later – RM1,656 x 5 = RM8,280
(Above mentioned only consider gross salary)
Now you can withdraw about RM 8K, it is much more nearer to RM 10K. before consider location, type of house, the most important thing is how much cash do you have on hand.
to be continue~
| All posts by DSvT | Email this author |
Add A Comment