because
http://www.rhbbank.com.my/personal/loans/asb_financing.shtm
blr = 6.75
blr - 1.25 = 5.5
if you do 7.05 vs 7.0. of course 7.05 is more.
borrow RM xxx at 7.05% to put in ASB at 7%
that's crazy
borrow RM xx at 5.5% to put in ASB at 7%
that is smart

btw, your calculations are wrong

If you use your own saving, for 5 years with RM226 per month = 2,712 p.a
1st year: 2,712 + 0.07x2,712 = 2,902
wrong calculation
at 7%
its (RM226 * 1/12 * 0.07) + (RM226 * 2/12 * 0.07) + ... (RM226 * 12/12 * 0.07)
dividend is on a monthly basis. based on lowest amount for that month.
dividend for borrowing and putting 10k in august vs
dividend for putting 2k in august, 2k in september, 2k in october, 2k in november, 2k in december
10k in august will get more dividend

correct me if i'm wrong.

---

Added on November 19, 2008, 9:07 pmi'm with you
the link died
i did some digging
and i found an archive
http://web.archive.org/web/20070916041544/...om/asbloan.html

(a) the author did not take into account COMPOUND INTEREST
the author said something like this
put in 100k in asb
every year 7%
every year get 7k
which is wrong

(b) at that time the rate was "BLR + 0.5% (iaitu 6.9% setahun) "
6.9%
6.9% loan vs 7.0% return
tough fight.
but now the rate is
http://www.rhbbank.com.my/personal/loans/asb_financing.shtm
BLR - 1.25
6.75 - 1.25
5.5%

5.5% vs 7.0% return

anyways

i use this to calculate repayment
http://www.bankofinternet.com/amortization-calculator.aspx

my calculations also say that,
if you roll the money

year asb div div used to pay loan
1 100,000.00 7,000.00 0.00
2 107,000.00 7,490.00 0.00
3 114,490.00 8,014.30 0.00
4 122,504.30 8,575.30 8,254.68
5 122,824.92 8,597.74 8,254.68
6 123,167.99 8,621.76 8,254.68
7 123,535.06 8,647.45 8,254.68
8 123,927.84 8,674.95 8,254.68
9 124,348.11 8,704.37 8,254.68
10 124,797.80 8,735.85 8,254.68
11 125,278.96 8,769.53 8,254.68
12 125,793.81 8,805.57 8,254.68
13 126,344.69 8,844.13 8,254.68
14 126,934.14 8,885.39 8,254.68
15 127,564.85 8,929.54 8,254.68
16 128,239.71 8,976.78 8,254.68
17 128,961.81 9,027.33 8,254.68
18 129,734.46 9,081.41 8,254.68
19 130,561.19 9,139.28 8,254.68
20 131,445.80 9,201.21 8,254.68

after 20 years, you get 131k
you pay 8,254.68 for 3 years

if you use your own cash
ASB PUT AFTER PUT DIV
1 0.00 8,254.68 8,254.68 577.83
2 8,832.51 8,254.68 17,087.19 1,196.10
3 18,283.29 8,254.68 26,537.97 1,857.66
4 28,395.63 0.00 28,395.63 1,987.69
5 30,383.32 0.00 30,383.32 2,126.83
6 32,510.16 0.00 32,510.16 2,275.71
7 34,785.87 0.00 34,785.87 2,435.01
8 37,220.88 0.00 37,220.88 2,605.46
9 39,826.34 0.00 39,826.34 2,787.84
10 42,614.18 0.00 42,614.18 2,982.99
11 45,597.17 0.00 45,597.17 3,191.80
12 48,788.98 0.00 48,788.98 3,415.23
13 52,204.21 0.00 52,204.21 3,654.29
14 55,858.50 0.00 55,858.50 3,910.09
15 59,768.59 0.00 59,768.59 4,183.80
16 63,952.40 0.00 63,952.40 4,476.67
17 68,429.06 0.00 68,429.06 4,790.03
18 73,219.10 0.00 73,219.10 5,125.34
19 78,344.44 0.00 78,344.44 5,484.11
20 83,828.55 0.00 83,828.55 5,868.00

this is at the compound interest of 7%
actual div is less for year 1,2,3 coz dividend is monthly balance


this is assuming that if the blr increases, the asb rates increases as well.
anybody got statistics on blr vs asb rates?

This post has been edited by ttwangsa: Nov 19 2008, 09:07 PM

i agree
if you have to pay 14.4k per year
and get just 14k, you have to give 400 bucks per year
over 20 years you have to give out 8000 bucks

oh
but wait
what happened to the 200k you borrowed
its still in there

so...
400 bucks per year
after 25 years you get 200k

sounds like a good investment to me

cost = 8000
time = 25 years
profit = 192,000

based on 4.75 over 25 years vs asw

bn rules? an ogif ruler is still a ruler right?

post offfice?
i think depends on area
in puchong tesco: 9 a.m - 8 p.m

i think asw, bumi units always up for grabs.
MOST bumis tend to spend cash on cigarets and cars.
btw am a bumi.

10% - 12%?
where got that high.

http://www.asnb.com.my/asb.htm

EPF cut from 11% to 8%, BLR going down.
so is it me, or i have a feeling the government want more money in the market and less money in savings.
if this is so, then they are going to give less dividends to these ASxx? yes?
no?

"A lot of ppl" should surf to the ASNB website.

kena tunggu la bro
sekarang tengah kira dividen
asn/asb transaction are suspended till jan 09 (first working day, methinks)

asb + asn only.

but no use if you top up now.
the dividend is calculated on the minimum balance of each month

1 dec 2008 - RM 1
2 dec 2008 - RM 200,000
dividend for dec 2008 is (1/12) * 7% * RM 1.00 (if declared dividend is 7%)

no shit?!
even if ASB gives out 11 percent compound interest,
at the end of ten years
0 10,000.00
1 11,100.00
2 12,321.00
3 13,676.31
4 15,180.70
5 16,850.58
6 18,704.15
7 20,761.60
8 23,045.38
9 25,580.37
**28,394.21**

but if

3x capital guaranteed return?
10k -> 30k

hold on
capital guaranteed?
or profit guaranteed?

any links on this?
or "give me your name and number, i'll call you, maybe we can meet somewhere?"

if bumi - always available
if non-bumi - available during the first few days/hours after launch, after that, depends on luck.

bumis have all the privileges and and they complain the most about not being financially healty.
go figure. "lu orang pikir la sendiri"

i saw somewhere CIMB ASB LOAN BLR - 1.55
can someone confirm this?

yes.
that is correct.
compounded.

yeah
never
i'm not sure which one is true
(a) all the bumi in all of malaysia, doesn't want to subscibe to ASM/ASW
coz they subscribe to ASB, but ASB has a cap of 200k
(b) quota only applies to non-bumi.

i think (a)