The reduced amount of the employees’ contribution to EPF from 11 % right down to 8 % will be produced automatically, from January 2009 until December 2010 incomes effective. The employers’ 12% contribution remains the same. Which means that if you don’t explicitly notify EPF to keep up your 11% contribution as before, January 2009 onwards by, your contribution will be automatically reduced to 8% for another 2 years. If you intend to sustain your 11% contribution, or any part other than 8%, you have to inform your company, as well as send the “Form KWSP 17A (AHL) – Khas” to EPF office. As at 31 December 2007, the total membership of EPF stood at 11.69 million.
RM7.55 billion to be freed up for spending in the economy, in the positive case that EPF contributors choose the rate cut and don’t keep up with the 11% contribution rate by submitting the “Form KWSP 17A (AHL) – Khas”. This isn’t a high shape to promote the overall national economy, but it does facilitate a similar effect of lowering the bank interest, which is going on in a great many other countries right now.
This also tips that the Malaysian government is trying hard to avoid an interest rate cut, which would further weaken the former exchange rate of Malaysian Ringgit probably. Should you opt for the lower contribution rate, or in the event you submit the “Form KWSP 17A (AHL) – Khas” and maintain your normal 11% contributions? This year One thing to consider is that since the financial climate is not so favorable, we won’t expect a good dividend payout by EPF to be announced. I’d say that it’s not just a bad idea to lessen your EPF efforts and spend your money to make more value from it smartly. However, if you think that you will be not a wise person in money spending, you might want to opt for maintaining your 11% contributions to EPF as a form of “force saving”.
“Some individuals are prepared to take a negative cashflow with the idea that they know the asset will increase over time,” Thompson said, explaining an alternative investment strategy that depends on understanding rather than immediate income. Eiden also pointed out that cash flow increases over time as rents rise.
“The silver lining, if you will, for an investor whose into this is that rent appreciates 3 to 5 percent every year on average,” he added. Not every investor desires, or can qualify for, the standard or ARM home loan. And several of the properties that are most appealing to investors won’t qualify for a conventional loan anyway. For example, even relatively modest multifamily buildings that happen to have significantly more than four systems typically require commercial loans.
Investors looking at more exotic properties – everything from retail parks to mobile home developments to cemeteries – may also need to get creative using their financing options. The conventional, 30-season mortgage loans purchasers use for primary residences typically can’t be utilized to buy large multifamily rental tasks. But there are a number of services to make these kinds of investments work. San Diego-based Wilshire Quinn Capital, for example, is an exclusive lender that fronts cash to investors so they can close on properties quickly.
“If a real estate investor is going against multiple offers on a property, the best way to get that deal is to have terms that are advantageous to the seller really,” Wilshire Quinn CEO Chris Garcia informed Inman. Wilshire Quinn’s loans last a maximum of 24 months, and relating to Garcia are normally paid off in less than a year. 10 million, and interest rates are between 8 and 12 percent typically. Those are steep terms set alongside the lower rates and longer payback periods of conventional financing, but Garcia said his firm’s clients are using strategies where this kind or kind of short-term strategy is practical.
They have to be able to close within times, for instance, and usually either anticipate offering the house or refinancing shortly thereafter. “That’s why people pay reduced for use of our funds,” he added. Garcia said that investors have used Wilshire Quinn to buy commercial spaces, parking constructions, homes for flipping, and a variety of other properties.
Companies like Wilshire Quinn are not for each buyer. However, they do highlight the fact that there are alternatives to the traditional, band-oriented lending that serves as many buyers’ entry way into real estate investing. “We fill a distinct segment where traditional banking institutions can’t move as quickly just,” Garcia added. You will find other strategies as well.
Nourmand said that in his area of Southern California, he has seen more people borrowing money from family members. Although growing phenomenon of parents gifting their children cash to buy homes is well-documented, Nourmand described a somewhat different development where parents simply loan their kids money for real property.