^don't like that la...

anyway, can any sifus here enlighten me whether if asb loan is any better in my case/situation.

i am going to invest 100k in a 10 years++ old asb account(which is entitled for year end bonus) in this end of year, then i plan to take up another 100k loan early next year(january) to maximize the investment limit which is 200k. at the moment i am able to save 10k permonth. so if i can pay back the loan with in a year, is it any better?

why i am considering this is because if i were able to borrow 100k in one go and invest in the 1st month next year, the return will be calculated from the 1st month next year,it will be able to boost the return as much and quick as possible compare to investing 10k every month for a period of a year. so the blr% rate that i am going to be charge by the bank is only calculated for a year.

so if current blr% rate of the year is lower than average asb return, should i consider borrowing money?

sorry if i make it a little bit confusing, thank you very much!

Theoretically, it can be a wise investment if you could borrow at a lower rate and reinvest to get a higher rate of return, similar concept to people borrowing money to do business. The major risk here is, the high rate of return is never guaranteed (only capital is protected, return is not).

Net rate of return = ASB rate of return - borrow rate

This is a simplified formula on your net rate of return. You will make money when ASB rate of return > your borrow rate and you lose money when it is otherwise.

ASB rate of return is not something that you can manipulate... but the rate of borrowing is. So, the key here is to borrow at as low rate as possible to be safe.

By some mind calculation, if you wish to take the risk, I strongly discourage if you take out a personal loan for it (rate of 8 or 10%+ is too risky)... however you can actually consider it if you can secure a low rate loan (like mortgage loan) at 5% or lower. Make sure you have a consistent surplus of income to cover the instalment as well.

helo,

wanna ask, is it i can go to Maybank and open an ASW account?

YES, u can go open.

Maybank is one of the PNB agent.

thanks.
any cost incurred for this?
hmmm i thinks i miss the train this time...
now saving for the next train to come...
haha

ejleemy,

There is a special loan for buying ASB.

Dreamer

thanks for the reply,

is it possible if i can use my investment in ASB worth 100k to take up a loan for another 100k? just like FD?since ASB capital are protected also? i have no any other property whatsoever as a collateral.

@dreamer
yes few of my cousins did take up asb loan at the moment, but the terms and condition is they won't be allowed to touch the money in asb for like a period of 7 years IIRC.

Yes, as far as I know, the rate of such scheme is not as good as a mortgage loan. Mortgage loans can go lower than 5% now... tied to BLR -x% tho, so if BLR goes up, it will go up as well.

ah_suknat,

<<is it possible if i can use my investment in ASB worth 100k to take up a loan for another 100k?>>

Why do you need to do that?? All you have to do is to take a ASB loan to buy 100K of ASB and use that 100K worth of ASB as collateral. You do not need upfront money to buy ASB.

Please tell me why bumi cannot be rich with this kind of ASB scheme. Remember in the old days, the ASB dividend is 14% per year.

Dreamer

---

Added on September 12, 2007, 10:17 amYes. But, it can be no money down and it is higher risk for the bank.

Dreamer

This post has been edited by dreamer101: Sep 12 2007, 10:17 AM

problem with bumis is most of them cannot see money in their hands. They would prefer to spend it rather than save it. But that is good for overall economy

Anyone has successfully purchase ASW? feel free to share your grandfather story here.

got mine.....quequ up at 8am....

then 3rd in the quequ....but then so lucky, me the 1st to pen account n make deposit...

but me not invest the max la....haha

i went RHB at 8.30am, 7th inline, but damned RHB until I left at 11.30 still not online.

Went to nearby Maybank, luckily I pujuk 1 auntie to tumpang for me lol...was 3rd in line, done in 1 hr.

A lot of ppl went for 20k...including the auntie who had 2 x 20k accounts..another auntie got 3 x 20k acc....sigh i dont have that much lol...

Those auntie very geng woh.

Each person can open how many account using a same name ???

each person can only open 1 account but they can open for their children, husband , father ,,mother ....

I just checked my bank account, still got 1k left. went to RHB bank deposited 1k ... heheh got asw2020..

not a lot but if we calculate 6.8% return a year, it's about RM5.50 pocket money a month. OK lar


as on 1.35pm today, ASW2020 still available.

20K/ person limit is very good move. i remembered last year my rich boss deposited 100k each into his 3 daughthers account. (imagine 300K)

The 20K has effectively cut off the richer segment of society's access to asw2020.

This post has been edited by soul2soul: Sep 12 2007, 01:54 PM

Last time all rich people can successfully buy the ASW 2020

Now the chances is still the same or not ?

i heard this year 2007 ASW2020 is 8% dividend. Anyone can correct me?

chance is still the same but no matter how rich a person is, he can only invest 20k max.

yes, asw2020 last year dividend is 8%

is it age over 40 cant open new account?

just now saw some uncle wanna open new account, but pos ppl told them is not allow for those over 40..

me oso blur

husband, daughter, son all also can have 1 individual account.