Unit trusts
REITs
Shares

But u need to do some homework, cannot blindly invest.

Of the 3 above...give u an idea. IGBREIT, which holds MidValley and Gardens mall, is now yielding dividend of about 5%

This post has been edited by Pink Spider: Apr 27 2015, 11:48 AM

Why I can't look up IGBREIT from fundsupermarket ?

IGBREIT is not unit trust....find at stock market

As a stock, it's capital value seems remain quite constant based on what I see.

So if it is the 5% dividend one is depending on, then it is still not a high performing investment.

RM35k cash to buy car is just peanut to IRB. Any uncle/auntie can do that.

Anyway, remember cash is king, and it will very useful in case of any emergency.

Although you can save some interest from buying via cash, but in the event you need cash, you might even pay more interest by getting the same cash.

Friend of mine paid RM150k cash for his car and did not get queries from IRB. I am not sure if it is typical.

High risk high return lor

UOAREIT yield higher...6%+

YTL REIT even higher...

Paying cash nowadays is normal, ive seen people paying 1.2mil for a watch

Cash for car is nothing to shout about now, no one gonna check

some comments from me - not targeted to TS

i had been in this forum for quite a while and much to my amazement
i cannot believe even so called gurus who always flaunt on their FD promotion skills
cannot differentiate or calculate effective interests between flat/HP loans and compounding interest loans.

anyway, regardless of higher HP rates, i still prefer to buy my car with a loan. effective interest rates are about 4.7 to 5%. if i put that money in bluechips they give me an average of 8 to 12%. no brainer.

if you extra cash and wish to save interest no harm paid by cash

I think I know who

I know who paid 3 mil for flowers.

we all know who

+100

Ok, i made my way to 2 banks for loan enquiries,

1 )CIMB hire purchase, 3%p.a,
for 30k principal, there will be RM4500 loan interest for 5 years,
and i will earn RM6000 in FD for 5 years @ 4%p/a.

Contra gain: 6000-4500=RM1500

2)Mach by HLB cruise control
I was told that i can deposit cash into the account to reduce the interest, up to 30%,
by putting the RM9000 into the account, i am only charged RM 2227 interest for 5 years,
which translated to 2.12%pa!

Meanwhile, the remaining RM21k in FD for 5 years @ 4%p/a. will make me RM4200.

Contra gain: 4200-2227=RM1973


any better choices, folks?

you still dont get the idea of car loan.

ok let me make it simple for you. You are paying repayment every month, why is it that bank still charge you interest based on your initial loan amount and not the reduced balance? Car loan is one of the worst loan (i.e. profit for bank)

If you can live without these 35k, pay cash. If this is all the saving you have, have a loan at shorter tenure (3-5 years)

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I don't think the gain is worth for 5 years. You might as well get the car cash and just keep aside say RM100 a month as savings. You'd still get dividends from your savings account and have RM6000 cash after 5 years.

Calculation is flawed because you did not take into consideration you are needed to pay monthly installment. And you keep in the same amount of money every month in the bank as saving, that itself will generate interest.

The easiest for you to see it is to feed the data into this online calculator :-

http://loanstreet.com.my/calculator/flat-t...rest-calculator

It says the effective interest rate per annum is 5.64%. So no way it's lower than the 4 % FD.

Oh yeah,
after doing some spreadsheet, i found that my FD interest reducing every months as my principle drops after repayments,
while the loan interest remains the same until the end of the tenure, although i paid most of the amount owed in the 5th year.

it ended up my FD interest over the 5 years are about 3.1k, while the loan interest itself is 4k++!