i saw that cameraman,luckily he didn't put in my part

I saw some SEHrians name in the list only, muka jau tak nampak in the video

Precisely, flexi loan works as your option 2.

Most of my loans are flexi account, therefore I only can share my experience for flexi loan. Nevertheless, I am not very sure about the semi flexi loan, you may want to check with your banker whether can have flexi loan facilities.

For flexi loan, you will have two accounts, one is loan account, one is current account. Loan account consists of loan amount and the interest bank charged to you. Current account on the hand, consists of the amount of money you dump in and also the interest you earn. The rate of loan account and current account is the same. Every month, your loan account will transfer money from the current account, to deduct the installment and the interest charged. So you have to always make sure your current account have enough money for the monthly deduction. You always can dump in excess money into the current account, even during construction period, in order to "earn" more interest to offset the interest bank charged you.

Take your example:

Loan amount : RM 300k
Instalment : RM 1600
Disbursed : RM 60k / 1st disbursement
Interest rate: 4% pa
Tenure: 35 years (installment) + 2 years construction (servicing interest)

For flexi account:

First month after 1st disbursement:
Amount bank pay to developer: RM 60k
Interest charged: RM 203.84
Amount you put into the current account: RM 1600

Amount left in current account: RM 1600 - RM 203.84 = RM 1396.16
Interest earned in current account: (RM 1396.16 x 4%)/365 x 31 = RM 4.74
Amount in current account that bring forward to second month: RM 1396.16 + RM 4.74 = RM 1400.90


Second month after 1st disbursement:
Amount bank pay to developer: cumulatively still RM 60k
Interest charged: RM 203.84
Amount you put into the current account: RM 1600

Amount left in current account: RM 1600 - RM 203.84 = RM 1396.16 + RM 1400.90 (previous month)= RM 2797.06
Interest earned in current account: (RM 2797.06 x 4%)/365 x 31 = RM 9.50
Amount in current account that bring forward to third month: RM 2797.06 + RM 9.50 = RM 2806.56

From this example, you can clearly see that flexi account principle is based on "the more you dump in, the more interest you earn to offset the interest charged by the bank". Principle reduction actually not apply to flexi loan.

You can do what's listed in the example above, even no need to notify the bank. Perhaps you will ask, what's the difference in the example if compare you start paying the installment now?

The answer is on tenure. If you do in the example, you have 37 years to settle your loan, but if you start installment now, you only have 35 years.

Many people will think that the shorter the loan tenure, the less interest we are paying. This is not apply to flexi account. Flexi loan is depending "how fast" you can accumulate the money that bank pay to the developer plus the charged interest. The faster you can accumulate this amount, the more interest you can save. Tenure on the other hand, should be as long as possible.

For example:

Property price: RM 500k
Cash in hand: RM 500k

Choice one:
Use 500k cash in hand to buy the property directly. Property belong to you. But in case you urgently need money, you need to bring the property grant to bank, and "begging" the bank to "borrow" you RM 500k, with the property as the collateral in this context. Expect to pay the high interest rate I presume.

Choice two:
Apply a flexi loan, maximize the loan tenure (35 years). Dump in your 500k cash into current account associated to the loan. Bank won't charge you a single cent of interest. Property belong to bank but you have the full authority to exercise the property (stay or rent). In case you urgently need money, just take out the cash in the current account. No need to inform bank for the withdrawal even. The amount of money you take out, will be charged the interest based on property lending rate (4% ++ currently) of course. Your 500k in the loan account of course won't stay forever there, as it will be keep on reducing years by years (bank will take it completely after 35 years). Nevertheless, you won't lose out the 500k in one shot because of full settlement. The cash still in your hand...

Hope this helps.

This post has been edited by samkps: Feb 27 2014, 12:33 AM

Opps.. my name is there, fortunately not the face...

LOL ... Leng chai face cannot show us meh?

I was there too early. I guess cameraman not ready yet. Same like u can only see my name but no face. Anyway, not lengchai no need to show also i am happy

LOL ... all say sendiri no leng chai, mana tau rupa2nya very leng chai geh

TKJ, is because no lengzai, then dun dare to show mah... later scare people away then no good loh..

i say myself leng zai wor

Hi Sam bro!

Thx for your details explanation

Now I will only start my mthly instalment upon final disbursement by the bank to developer. In d mean time, I will dump any extra cash into my account to earn more interest during the construction period.

Thanks bro

You are welcome jeff gor.. It's nothing, I just practicing TKJ's principle, sharing is caring nia...

Anyway, the example I share is for full flexi account. If you are taking semi flexi, then perhaps it is better to ask your banker whether have such flexi account features...

anyone know what is the next event at SEH?

Bro Doom Doom, according to TKJ got concert in my 2014. Also, health campaign is coming.. No idea on the details.

Btw, any idea we can ask SP setia to apply the boom gate for the terrace area where the residence will pay for the cost? If use manual gate macam very louya

I think need to ask my banker too. Anyway, thanks for following TKJ foot steps and become caring

Btw, any first time Sp Setia buyer gotten their privilege card? I just gotten mine today

gotten mine last week,fancy design

Look classy

we can together sent email to request for sps set up auto boom gate for it..

yeah,good idea

Yeah, concert with Hong Kong artist if not mistaken...

True, with a classy guard house but with manual gate may looks laoya. Oh, I thought auto boom gate shall depend on Resident Association discretion later? Well, if SPS can assist to install it, then it will be superb!!!