Irony isnt?

Bank only hiew people that have money.

Where do cash poor people go and borrow money?

my developer offer me cash back 70k

is low for me.. that money can do a lot of things.. can buy another property by servicing interest or buy furniture and renovation etc.

While this is true, the low interest is beneficial. In general personal loans have more than double the annual interest rates of a mortgage, and limited to just 10 years.

A loan is a loan, assuming that we do not care what we call these loans (personal vs mortgage-cash-back), it is always advantageous to borrow more, stretch the tenure, and pay lower interests - as long as you use the capital to earn more than the interest rate that is. Businesses should be all over it.

In fact, they do. Take bond for example, highly rated bond issuers have exceptionally low coupon rates. If you do not capitalize your rating (company) and high MV property (mortgage applicant), you are wasting that opportunity. This is especially true for those who end up taking personal/business loans later in their life.

Of course, one can choose to live a lowly-geared life and that is fine, however YOLO     

Not every one knows, believe me, I finance people for a living, so Ive seen all sorts of reasons for people to refinance, to take up PL, increase their CC limit, etc.

In any case, a mortgage is just a tool. However you want to use it is up to you. If you are smart, you would make you life "better". However, "better" is subjective, for some people, they do not mind owning just 1 house, but drive a good, reliable car.

But no one can deny the fact that having this tool, and the option to use it is better than not having one. If no banks are willing to extend you any credit, that means you are not credit worthy - your employment probably sucked, business not doing well, you past repayment record in shambles, or simply too old.

Credit = good.

I know, I sound biased saying it.

1. But that a whole different set of questions. If we are going to debate over competency, it is only fair to discuss those who are educated in BOTH credit/financing and investing.

2. But we are not talking about that I believe. We are discussing the merits of financing and gearing.

3. Gearing is an important step to accelerate the accumulation of wealth. Sure you could do the same without gearing but it will take a longer time and you are unlikely to end up richer than those who geared. Sure, gearing has its risks, but we can address that as it is: the risks of borrowing.

maybe u have different thoughts, for me, borrow extra from bank is very hard.. if can borrow extra. better be.. no one will pay according to the installment one, trust me..  Within 10 to 15 years, you may sell the house already...

1. As I mentioned earlier, "abuse" have different meanings to different people. To some, borrowing to extend their house is "abuse" but if the extension is required due to family growing up, that is a necessity.

2. Likewise, different people have different aspirations; a lot of people get loans (mortgage-cash-back, term loan, personal, etc.) to get the cash to:

a. start or expand their businesses
b. invest in schemes like ASB
c. aforementioned house renovation

3. Debt is a tool, it is not good or bad. Whatever you do with that money is entirely up to you. If you are financially incompetent when you have debt (and cash), you would also be financially incompetent when do not have debts.

4. Your arguments about over-stretching, overly-geared, and abusing the tool is valid, but they do not negate the fact that debts are tools, and tools are good.

5. Consider someone who is financially competent but doesn't have any means to borrow (young graduate), he would have to start from 0, and would probably miss some great investment opportunities (for example, just before the property boom in 2008). On the other hand, young executive who has worked for a few years saw the opportunity to invest in 2008 and managed to secure a few loans to buy properties. He reaped the benefits a few years later when he sold off the houses.

Having access to credit/debt is always a good thing. And just because you have access to it doesn't mean you need to use it.

That is on them to decide right? We can't just tell them to stay put and let everything be done in "cash", investing little by little. Where's the fun in that? Where is the return in that? 8% p.a on RM1,000 a month is nothing. Now take that RM1,000 a month and turn it into a loan, to be invested in an investment scheme that has been giving greater returns:

a. like a house
b. ASNB schemes

Education matters, but education/knowledge in investment is a whole different thing. I expect people who borrow to invest to know what they are doing. In short, you cannot tell people not to borrow, just because there are potentials to lose money when they invest wrongly. You tell them to get educated. Otherwise, you might as well tell everyone not to invest.

You are right, I agree completely with those 2 lines. We have the same understanding, but our appetite seem to be different.

You still don't get it. You are contracting yourself big time and then in the process misleading and confusing others.

Your end objective is to say "debt is good" - whatever it takes. LOL

But nobody knows what you are talking about. Why make things so complicated by making such assertion ? We need not worry about debt as a tool is good or bad. 

We only need to know if our borrowing is doing good or doing bad to us.

Compression loan is a great way for investors to optimise their purchase. Merry Christmas lor...

Agree with you. Its important that you buy within your financial ability and also, buy the right property.

The one that fulfilled your investment goals.

Buy grade A popoti, confirm can laugh all the way to the bank...

somehow loan compression reminds me of driving a turbo charged car without seat belt, it's really fun until it's done.

Such is only a best effort attempt. You think they are able to perform magic and have good connection is the reason ?

Loan applications will be submitted and when they are approved, the agent can wash hand already.

Future ? Nobody can guarantee anything. Just pray that these banks continue to close one eye on it.

Is it a risk worth taking ? If the road is bumpy, just don't drive fast.

can i get compression , for 5 property then still 90% quota? on one goal

after bank release to owner or developer, still can withdraw from buyer side?

Can't wait for my 6 units compression VP, two coming soon this month with 6-figures cashout. Wish me fat piggy year!