this OCBC Max yield, you put in RM6000 pa...how much is the average returns pa after the completion of "saving" plan?

good start, manage to have 30% put aside for money generation.....but unknown to that max yield pa from this max yield plan, thus unable to tell if this is a good money generating plan

What car you are using? Maybe save on food? I generally do not spend so much on food per month, on average about RM400 and I do eat out once a while.

on the initial yr, you put in RM6k pa....you get back RM300 pa at the end of the 1st yr,
it is about 5% after the 1yr

on the 2nd yr...you would have placed RM12k, you will still get back RM300...that is 2.5% at end of the 2nd yr
on the 3rd yr....you would have placed RM18k, you will still get back RM300...that is 1.66% at end of the 3rd yr
on the 4th yr....you would have placed RM24k, you will still get back RM300...that is 1.25% at end of the 4th yr
on the 5th yr....you would have placed RM30k, you will still get back RM300..that is 1% at the end of the 5th yr
on the 6th yr.....
so on so on...

if want to consider it as insurance,....then there should be better insurance plan option rather that for this insurance cum saving plan?
which could make better or more efficient use of that money?


found this "old" thread of "better" returns insurance plan
".....if you save RM10,000 every year, there is a guaranteed yearly income of RM2020 and cash dividend of RM 202 each year."
that is 22% 
https://forum.lowyat.net/topic/2778479/all

Hello,

Good to hear that you are aware of your spending and works towards personal finance management. I believe you are ahead of your peers.

Probably just 2 questions for you :

1. Have you build up sufficient emergency funds? Ie 3-6 months of your take home salary.
2. OCBC Max yield is considered as your insurance?

I noted the words....."% of Basic Annualised Premium"...
thus if your annualised payment is RM6k, they will gives you 5% of it, thus it is RM300 each year.

after 6 yrs, you had paid RM30k, they will pay you 13% of that RM6k (annualised premium amount) = RM780
RM780 of RM 30k = 2.6%pa

well that is my interpretation....I wish you well....

I think my interpretation is correct bcos it was based on the printed words ....
go ask and confirm with your agent?
and tell us?

I am on a more cautious side, thus I think you still need an insurance plan to mitigates your risk.
does OCBC 360 has that?

dunno how your rebate will offset / being counted on for reno.. as my buddy, who's also house hunting, told me financiers are MINUSING the rebate, then on the loan on % that net amount.
ie. Selling Price LESS rebates = Net Price, which is the 70%-90% is what the financiers are offering him

just sharing what i saw ya, dont shoot the messenger 

yup, understood - that's what the sales agent / property developer tells U.

that's what my buddy was told too, then when he went to hunt for financing... the financiers took the "higher amount" LESS the xx% rebate = net amount,
then offered 80%-90% on that net amount.

U managed to get the 80%-90% loan on the "higher" amount? if so, i guess my buddy's financiers & mortgage brokers sucks heheh. Pity

Just curious, if the rebate will be credited to you, in that case aren't you paying interest for the so called rebate as it will be priced into your loan amount?

Did you take consider of your living expenses?

If SPA is at rm814,000 and loan at 90% is Rm732,600.

The net price of the house rm699,000 less loan rm732,600 =  rm33,600 to paid back to you.

Did you miscalculate?

No developer will pay back cash to customer as rebate. All will only offset the house price. Unless you pay cash 10% downpayment first then it only will make sense that the developer refund you back the so called "rebate".

Some developer appoint 3rd party to sell their project, so just beware.

Dunno if I have any misunderstanding. It seems like you are borrowing a full loan to cover off everything ,rather than developer rebate it by offsetting the house's price.

Meaning to say, in bank's record, you are borrowing 814k. And only 7%/8% masuk pocket, the rest is to the developer. Betul kah?

814K - 732k = 82K -> this is rebate that developer gave to you. If only you didn't pay anything to developer for house's deposit.
732k - 621570.40 = 111k -> this is you borrow money from bank. You need to pay back the interest for 111k portion.

Unless you put 111k in your current account to reduce your loan interest. Then you will be benefited from the cashback. Otherwise, it doesn't seem worth it.

To pay back the monthly instalment is kinda waste because a big portion of your monthly instalment amount would be the interest that to be earned by the bank. Not to big offset your principal amount.

If your EPF has enough saving, try perform withdrawal money from account 2 for renovation.
Either to put the 111k at current account to reduce your loan interest, or put it somewhere else whereby you can earn > interest bank is earning from you.

However subject to your own survival in daily life. Can you survive if there is no one to rent your room? Can you survive if there is an emergency which you need to big cash?

I hope you have other form of savings as well because you are trying to use the rebate to pay for your loan. And dont forget the SPA & FA stamp duty is pay by you. Developer only pay the legal fees to lawyers.

And the maintenance of the house and yearly quit rent and assessment must also be taken into your budget as well.

I'm not sure your 35k renovation include the electrical and furniture or not if is included you dont really have much money to renovate..

Here's the calculation based on your figure given.

Current
Commitment: RM2035
Monthly Salary: RM 5100
Take home Salary: RM 3065 (after deduct the commitment)

If to clear off your phone loan using 111k
Phone: 285 x 11 = 3135 (clear off)
Commitment: 2035 - 285 = 1750
Take home salary: 3350

If to clear off both phone and car loan using 111k
Phone: 285 x 11 = 3135 (clear off)
Car: 750 x 5 = 3750 (clear off)
Commitment: 2035 - 285 - 750 = 1000
Take home salary: 4100

So the amount used from 111k = 6885. Left you with 104k.

Let say, you can find a tenant immediately agree with 1k rental per month (it won't be easy)
Now, you have:
Monthly commitment 700 + 300 + 3100 (Car + PTPTN + Home) = 4100
Monthly rental income = 1000
Take-home salary = 5100 + 1000 - 4100 = RM2000.

I do not know how much is your remaining balance of your PTPTN loan, so could not advise you to clear off. If it is within 10k and government is giving the rebate for full settlement, I would advise u to clear it off using the rebate.
But it is more than 20k, just continue to pay monthly as PTPTN loan has the lowest interest of all of your big amount loan.

If you do not have any saving on the renovation, you can use the rebate amount at a minimal cost. Like only to renovate the necessary. That furniture, you can buy it slowly.

Remaining to put it in the current account that tied to your loan account, to reduce the monthly interest of the home loan.

Then continue with higher salary job seeking. To cover your compulsory expenses on house.

The objective here is to release your monthly commitment for you to survive.

Again, the assumption here may not fit your current lifestyle, as I do not know your spending habit and other commitment such as buying pressie for gf, give money to parents, eat outside with friends and etc.

Your main objective should focus on reducing monthly commitment in order for you to have cash on hand monthly. 

I'm suggesting you clearing off RM750 & RM285 because these are the lowest commitment that could settle it fast without using lots of rebate money. 

Imagine, when home instalment kicks in, and you still holding your existing commitment, it would be :
Car: 700 + 750 = 1450
Phone: 285
PTPTN: 300
Home: 3100
----------------
Total: 5135(Commitment) > 5100 (Salary)

5135 is to bear by you once you have your home key. You can't find a tenant immediate right after you owned the house.

Dog friendly? Mind sharing where this is? Desa park?

Sorry didn’t see you u replied TMP. How big is ur unit?