QUOTE(beckbrooklyn @ May 12 2014, 06:43 PM)
Please correct me if i am wrong,regarding the mbb scheme,the interest is finance into the loan,so the first release let say 10%=50,000 interest let say 4.2%,rm210.so 4 years is 810.if add up all the release,the interest will become a big cost for the purchase,so for investor how to generate higher profit?thanks for your info and reply.
in general, estimated 4% of total loan amount is your progressive interest for a 4-year project.
says you intend to get RM 500K loan, so the total progressive interest will be around 20K, and don't forget this 20K will also be charged 4.2% interest during this 4 years time, and it is depends on how long has the loan been released.
anyhow, after 4 years and VP, bank will only then calculate your monthly repayment based on original loan amount (500K) + total progressive interest & interest occured (about 20K + 2K) = 522K
if you tenure is 35 years, the montly repayment difference is only about rm82 higher,
but for flipper, the advantage is you no need to come out money during this 4 years, and you can utilize your money (this 20K) to invest into other thing like share market, which can generate more if you are lucky and wise enough, whereas just dispose midfield 2 after VP and earn the difference.
poor people always thinking of how to save money into bank
rich people always thinking of how to get loan from the bank