Rehda wants more EPF funds freed for property down payment
The Real Estate and Housing Developers' Association (Rehda) has proposed that the government allow home buyers to use more money from their Employees Provident Fund (EPF) for the down payment of the property.
Rehda president Soam Heng Choon (above) suggested that the EPF contribution to Account 2, which can be used for property downpayment, be increased from 30 percent to 50 percent...
The Real Estate and Housing Developers' Association (Rehda) has proposed that the government allow home buyers to use more money from their Employees Provident Fund (EPF) for the down payment of the property.
Rehda president Soam Heng Choon (above) suggested that the EPF contribution to Account 2, which can be used for property downpayment, be increased from 30 percent to 50 percent.
However, he also proposed a caveat where if a home buyer utilises more than 30 percent of the EPF contributions for the down payment of a property, the additional amount must be returned to the fund if the property is sold in the future.
"We are saying, anything above 30 percent taken from their EPF Account 2, the house buyers have to reimburse this account in case they sell their houses," he said.
Soam said these were among Rehda's proposals after meeting with Finance Minister Lim Guan Eng and Local and Housing and Local Government Minister Zuraida Kamaruddin.
"This is part of the budget wish list (from us)," added Soam.
At present, all EPF contributions are split two ways, with 70 percent going to Account 1, while the remaining 30 percent goes to Account 2.
Account 1 is inaccessible until retirement, except for specific reasons such as the contributor's emigration to another country, while Account 2 can be utilised for specific purposes such as to buy a property or education.
"We also asked for the EPF money to be directly channelled to the developer for property down payment.
"Currently, the house buyers have to fork out their own money for the property down payment, and they claim back the money from EPF," Soam said.
He said he believes Lim and Zuraida will look into Rehda's request although the ministers did not respond during the meeting.
Pakatan Harapan government will table Budget 2020 at the Dewan Rakyat on Oct 11.
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