Budget 2008 : CEO’s views on house ownership
The Star : Saturday September 8, 2007
CEO’s views on house ownership
Tan Sri Liew Kee Sin
Group managing Director
SP Setia Bhd
Since prices of choice properties particularly in urban locations have increased tremendously over the years, it makes sense to actively deploy savings from the Employees Provident Fund to finance property purchases as a natural hedge against inflation.
Properties also provide a long-term investment option that can generate recurring income in the future for retirees through rental collection or capital gains.
Alfred Sek
Chief executive officer
Standard Financial Planner Sdn Bhd
The Prime Minister has made a very convincing case for financing the purchase of a house using EPF savings. In our view as an independent financial planning organisation, the following points should be considered:
·The house is a good asset to have as it provides a home for the family. As such, helping the rakyat repay their loan quickly should be encouraged.
·Real estate acts as a hedge against inflation as its value rises in tandem with the cost of living. This enables the owner to retain the buying power of his ringgit.
·Just like EPF, a house can act as a retirement fund as the owner has various options to unlock its value, for example, it can be sold, refinanced or act as a collateral for a loan.
·As a housing loan from EPF is a highly secured source of loan, banks should provide a favourable interest rate for contributors. This will benefit the contributors, allowing them to have more disposable income for the necessities of life.
drNaz & his network of human beings 