Fundsupermart.com v4, Manage your own unit trust portfolio
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 Oct 4 2013, 03:46 PM
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#1
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Junior Member
196 posts Joined: Apr 2006 From: PJ, Malaysia  
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Wonder if the good folks here can give me some pointers.
I'm about to purchase my first home. Do you guys think it's wise to take a loan for the biggest amount possible and invest my leftover income and savings in mutual funds? Or would it be wiser to take as small a loan as possible and pay it off sooner by forgoing investing? |
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Oct 4 2013, 04:11 PM
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#2
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Junior Member
196 posts Joined: Apr 2006 From: PJ, Malaysia
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QUOTE(ben3003 @ Oct 4 2013, 03:49 PM) for house? go for the lowest amount of loan u have to pay every month, the longest duration, the biggest house u can get. becos house appreciate, so u dont have to worry much. Yeah this is what I've been thinking. I'm also worried that I may be doubling down on my risk because if my investments tank I might lose the house as well. QUOTE(felixmask @ Oct 4 2013, 03:55 PM) must note biggest amount loan you taking, then how much loan interest and how long you need to suffer. Advice noted. It's true that our current home loan rates are pretty cheap. Under what conditions would the interest rate go up? Current low interest...then you can be happy..but once the interest rate up, you prepare use what ever have juz to pay loan. Alwasy remember investment or loan..try to made sure it dont took big chunk $$ CASH FLOW. IF gone wrong..juz a small portion fo your monthly cash flow. I can afford to service an 80% 20 year loan. I'm wondering if it makes more sense to take a 90% 30 year loan and throw the balance into mutual funds. |
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Oct 4 2013, 05:06 PM
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#3
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Junior Member
196 posts Joined: Apr 2006 From: PJ, Malaysia
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QUOTE(felixmask @ Oct 4 2013, 04:19 PM) US reduce QE3 - printing more money..therefore..the interest of US treasure bill will up. Our Bank Negara want to avoid Hot money flow back to US$ leaving..no choice our BankNegara will increase MGS, therefore OPR will follow rate increase. Stay tune to US news update... 90% 30 year or 80% 20year ...how much will eat your CASH flow monthly... remember minus your Salary - Saving = left over is your expenses. Saving that you put aside monthly and wont jeopardize your expenses which are your LOAN installment + daily expenses + etc  Will stay tuned to the news. Both options would account for 35-40% of my salary. QUOTE(wongmunkeong @ Oct 4 2013, 04:31 PM) FooGray, Thank you. Got to give this a lot more thought.i think 1 MAJOR item to worry about (other than interest rate/this/that may go up/down): When U buy into a mutual fund - U LOSE x% to x.x% straight away Thus, if U use LEVERAGE (ie. borrowings) to execute mutual fund purchases... wouldn't the initial loss be amplified? Then in addition, how ar if it's stagnant OR go down OR go up a bit only per annum? Your probability of winning is higher only in the long run (ie. more than 5 years). Thus, in the short run - if U can cover and are ok, no probs (ie. can hold and service the payments WITHOUT selling or getting any dividends for 10 years or more) Keep in mind - if/when kaka hits the fan, are U sure U can hold? Problem / Q solved?  Just a thought QUOTE(felixmask @ Oct 4 2013, 04:48 PM) GOOD POINT.. I'm planning to stick with it for the long haul. My plan is to to invest the 10% downpayment I would be paying, along with the difference in monthly repayments over 20 years. Then draw from the profits to pay off the remaining 10 years of the loan. I'm 30 this year and don't want to be working to service the loan until I'm 60, so I've set a goal of 50 for myself. What SEAFOOD Wong..want to hightlight do homework when Invest...noting is guarantee can profit easily with the risk Market cant turn bad therefore you investment will be paperloss. 2ndly - Fund usually charge us with service/sales charges, which you wont easy gain profit within 1 year investment. Have any suggestions of funds I should be investing in? |
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