Thin air? Would you describe that with properties?

Because ASB-f and mortgages have the same principle. Collateral-borrowings

This post has been edited by wild_card_my: May 2 2019, 03:24 PM

1. Hard limit is RM200k. But soft limit is increased as you earn your yearly distributions (or mistakenly referred to as dividends). Your total limit is the combination of both hard and soft limits.

2. In general, yes, better to take a loan if you look at the numbers. But there are risks. Lets say the return for a year is lower than a certain level that it makes it not profitable to maintain the loan; then you can always terminate it in 2 months time.

This post has been edited by wild_card_my: May 2 2019, 03:29 PM

1. the unit price is fixed, whatever you borrow, would remain the same in value decades later
2. your returns are in the form of distribution of more units, also in the same fixed-price unit
3. there cannot be any negative returns because there are no negative "distribution"
4. the worst that can happen is 0 distribution announced for year. In this case, you would have paid the interests of your loans but received no distributions. Of which you can choose to cancel the loan and be done with it.

This is much more liquid that buying properties through mortgages

You are so in for a treat: https://forum.lowyat.net/topic/4431314/+300

1. YES SIR!!! Softcap is unlimited.
2. I dont know. They don't want you to lump sump 20mil into it? To give others a chance perhaps? You can only reach a million in softcap if you have invested RM200k for about 25 years anyway

Already covered it in the first post. Check the "spoilers" for 1 and 2.

As for the "cancel the loan earlier than the full tenure":


After 5 years: RM274k in ASB


After 5 years: RM188k outstanding loan balance


After 5 years, if you feel like cancelling, you would still have earned RM86k, cash in hand For the uninitiated, the RM86k figure comes from RM274k value deducting RM188k balance that you owe to the bank.

Guarantee in what sense eh? please elaborate, no speculations. Just hard facts

I thought you guys are smarter than this

Yes, can!

Any different than using rental income to pay your installment? You guys are not being fair with your comparison.

I am going to pre-emptively address the tongkat issues: Please, don't involve tongkat in this argument, we are debating the feasibility of this financing and investment, not whether or not some groups are persecuted. For that topic please bring it up in other threads or subforums.

You need to understand how ASB manage to give good, consistent returns each year compared to other unit trust companies.

Hint: It doesn't.

And I am not going to spoon feed you. I suspect you consider yourself very articulate. Do you know what I meant with the above statement, in that "It doesn't give good, consistent returns each year compared to other unit trust companies"

That is called a rolling technique, no different than using your rental to pay your installments no?

Yeah, as you can see through skimming.. you would notice that the units are being auctions at below the loan outstanding prices. For example: Mr. Lee bought a property from a developer at RM500k, with all the rebates and what not, he only took an RM400k loan. After the property is completed, he could not afford the installment due to the lack or low rental income coming from that property. The property was repossessed by the bank and auctioned off at RM300k after a few rounds of no-bids, thus reducing its reserved price.

Mr. Lee now owes the bank RM100k, which is the difference between RM400k vs RM300k, and since this amount is above RM50k, the bank has the right to sue him to bankruptcy to recover their losses.

This is what I meant with the advantage of fixed-price of ASB units. The RM200k loan that you took is collateralized by RM200k worth of units, which would not have lost any value going forward. THe moment you can't pay your installments, the bank will just sell the RM200k certificate back to ASNB, get their balance back which would always be lower than RM200k (due to you paying your installments over the years), and you would in fact, end up with cash.

No bankrupcies. Unlike Mr. Lee.

You can do it if you want to. This is called a "rolling method". But this method won't make you rich.

You want to end up rich, don't roll. Leave the dividend to compound. Don't tel me a working person in Malaysia cannot afford RM993/m? Well you can reduce the amount and pay less, not problem.

hehehe

err.. Become halal la. Become a Muslim. ASB funds are open to mualaf.

Okat that was just a tongue-in-cheek comment. You should not become a muslim just for ASB. But if you are already a Mualaf, then you are open to apply

Yes, you can. MBB doesn't offer the best rates anyway.

You can do that, or you let me see your account. I am sure you have increased your capping through receiving your dividends.

Please check this page to find out the soft cap: www.asnbsoftcap.faizazmi.com

I did. A few of them:






I agree wholeheartedly.

Maximize your opportunities.

Nah not possible. come, let me see the screenshots I posted (but with your own accoutn information)

Congratulations in figuring it out.

but lets get the terms right.

Softcap: now 20k
Hardcap: maintain 200k as per everyone
Totalcap: RM220k

Do you need financing at 4.85%?

There you go!!! Congratulations to all the Bumiputeras that have realized the beauty of ASB

And no shame in using these tongkats

Yeah, she is still studying for ACCA. But dad bright enough to know the benefits of ASB financing, especially when it is comparable to a mortgage. Why buy a house and deal with all the trouble of buying, maintaining, and selling one?


I said this once in this thread and I will say it again. ASB isn't giving the best returns consistently each year. Try to ponder what I meant.

ASB was created as tongkat to the Bumiputeras, because they do not invest their money. So ASNB was created to run ASB to encourage Bumis to save. Please read your history

where got guaranteed. You have to look at returns from the perspective of annualized returns, the longer the better. There are other funds giving higher annualized returns than ASB. Public Mutual's Ittikal fund for example.

"not grateful" whahaahahaha... what the hell do you think I am doing now?

erm. No comment.

Eh, ini Proxy. Ini... inii...... ILLEGAL!!

Well I am not telling you to, and I do not engage, but there are "proxies" that you can work with.

Distribution, not interest. Interest is what the bank charges you.

If you are smart, you can make more money in Kenanga Investment lah. The only good thing about ASB is that it can be collateralizd, which means you can start your investment at RM993 a month but get RM200k in capital, at low interest rates.

But you are rich already, already have RM200k in hand, why bother? Just invest in Kenanga.

disclaimer: I do not work as Kenangar nor ASB agent.

omg. you really dont know what you are missing.

I do not engage. Don't ask.

I got no lobang. I personally feel wrong about it. ASB is meant for bumi but hey what the hell do I know about "unfairness".

There are "agents" that engage in these proxy things. I don't. Normal arrangements that I know of is: you pay the monthly installment, and the "proxy" gets 10% of the distribution each year. You can either keep the 90% in the fund to let it grow or withdraw it to be reinvested into your own funds.

I have never heard of anyone prosecuted for this, but I am sure it is not strictly legal. Sounds and look like money laundering?

OK la I let you in on it. The risk of ASB-f:

1. start of the year, you start paying your installment for the next 12 months at the rate of 4.85% p.a on RM200k that you borrowed.
2. next year, when distribution is announce. ZERO! No distribution!
3. You wasted 4.85% on RM200k paying interests for nothing!

That's about it I guess. You won't go bankrupt since your loan balance would be reduced to lesser than RM200k. When you close the account, the RM200k remains as is, the bank would only take the loan balance that is due to them