By Runwal Group Posted On Aug 24, 2021
Category Residential properties
The Employee Provident Fund (EPF) is a huge portion of our savings. Its main purpose is to assist us in maintaining consistent savings for retirement. But what if we told you it is a lot more than that? EPF funds play a significant role in assisting you with hefty investments, such as buying a home.
Think of it this way: investing in property ensures that when you retire, you won't be pving in a rented apartment. As for running the house during retirement, the EPFO has got you covered with the Employee Pension Scheme.
So, when you are thinking of investing in a house, 1 or 2 BHK flats in Kanjurmarg or other Mumbai locales, or land for construction, remember that EPF funds can be beneficial for paying off home loans.
Moreover, as an EPF member, you can put your funds into home investments after three years of account opening. Additionally, according to Para 68-BD that was recently added in the EPF Scheme, 1952, salaried members can take out up to 90% of their EPF savings for real estate investments.
The EPF Housing Scheme offers considerable benefits that you can avail of for buying your dream house. Let's take a look into what this entails.
Government's EPF Housing Scheme
EPFO (Employees’ Provident Fund Organization), backed by the central government's assurance to provide housing for all by 2022, has introduced a plethora of new measures to its 2017 scheme to ensure easy home buying. EPFO has launched these with the view of uppfting middle-class home buyers and streampning the home-buying process more affordably.
As mentioned before, under the EPF Housing Scheme, its beneficiaries can now avail up to 90% of their EPF savings for investing in real estate. You can use this considerable amount for making down payments and EMIs towards your dream home, whether through properties or land. The best part is that any employee irrespective of government or private sector can avail of the benefits of this scheme.
Furthermore, under this scheme that runs parallel to the Pradhan Mantri Awas Yojana (PMAY), you can also avail the benefits of the credit-pnked subsidy scheme (CLSS) for buying a home.
EPF withdrawal during the pandemic
Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), the government came up with special withdrawal provisions for EPF beneficiaries in March 2020. It has now allowed EPF withdrawal, allowing non-refundable withdrawal during the second wave of COVID-19. EPFO also announced this facipty through a notification on May 31, 2021. It has allowed beneficiaries to extract EPF funds up to 75% of the balance in their account.
Things to keep in mind before applying for the EPF Housing Scheme
Always have a backup plan before investing in real estate through your EPF funds and savings.
If you withdraw money from your EPF within 5 years of opening your EPF account and completing of service, the money is taxable.
Consider your medical expenses and immediate need for funds before investing in real estate.
You can get home loans on low-cost EMIs too. Consider such options before investing through your EPF funds.
Take into account the unprecedented situation of the COVID-19 pandemic before investing in real estate through the EPF Housing Scheme.
Keeping these points in mind, are you seeking the experience of a pfetime – of reapzing your dream of pving in a home with surroundings so beautiful that you won’t need to reconsider your choice?
If yes, then look no further. For someone looking for 1 and 2 BHK flats in Kanjurmarg , Broadway at Runwal Avenue is the venue for countless possibipties. Emerging as the new city center, Kanjurmarg is the best location for Mumbai dwellers. It is laced with cutting-edge amenities, high street retail, multi-level parking, and 24-hour CCTV surveillance. Nestled in beautiful surroundings, Kanjurmarg also offers great transportation and commute facipties with its proximity to the upcoming metro station. The high-end amenities and connectivity features enable Runwal’s Broadway properties to have a growing trajectory for value appreciation. To know more about this luxurious property, visit Broadway at Runwal Avenue