What is the current value of rm2.483 mil assuming inflation of 3%?

yes, the NRIC is fine to open the ASB/ASNB accounts, but to apply for a financing, you need more documents than that. I can help with that if you would like to, otherwise, you can always take a trip to the bank. They will require basic financial documents, no different from any other financing
Depends, I don't remember your age because I did not link your name to your lowyat profile. I do remember we met for signing at a mamak near Endah Parade right? Sri Petaling.

Okay, here is the table to get 40-years tenure, it depends on your age. How old are you? if you are below 30 years old, it may be worth refinancing to get the longer tenure, but it is your call, I cannot force you to do one (status quo) or another (refinancing):


Due to the the fact that there is always a margin between the financing rate (4.85%) and the ASB distribution rate (7% last year), it is always much more beneficial to invest through financing. As someone below said, it is "free money".

Consider these calculations, assumption a return of 6.5%, and even if they fluctuate, both investments would be experienced the same amount of fluctuations since they are both invested in the same ASB account:

1) Cash investment, for RM945/m, 40-years, maturity value: RM2.061M



2) ASB Financing investment, for RM945/m, 40-years, maturity value: RM2.483M





That is correct. In a a way it is like any other investments. I will compare it to properties:

1. In properties:

a. You get rental income
b. You get capital appreciation (or if you are unlucky, depreciation)
c. You get a loan, and need to serve the instalments

2. In ASB-Financing:

a. You get distribution income (yearly basis)
b. Your capital is fixed though, the RM200,000 units that yo buy remain that way forever
c. You get a loan, and need to serve the installments

Investment in properties and investment in ASB through financing are similar in that they are both using the asset as collateral to get lower financing/interest rates. With these low rates, there is a margin between the financing rate vs the return rate. We earn a profit by profiting through this margin. 

The risk-levels are vastly different though, since with properties:

a. Capital can appreciate or depreciate
b. Fixed asset, takes time to dispose
c. Fixed asset, costs a lot of money to dispose including agent fees and applicable taxes (RPGT), charge to discharge
d. Require general (fire) insurance
e. Tenant default
f. Damages to the property

The list goes on. So for those who are eligible for ASB and thus ASB Financing, this is a no brainer.

I non bumi
Dapat masok ka

item no 2)
pls calculate the final Net Future Value after interest payment to bank (Lender)
tq

I non bumi
Dapat masok ka

Imagine asb dividen this year will be 4%. All financing will be tersontot

Should be abolished.

1. Actually investment ROI doesn't work that way. You cannot figure out the ROI by deducting the capital outlay off the maturity value.

Consider investments in properties, like purchasing a house for rental. For an RM200k mortgage, you would be paying RM1k a month for for 35 years, after the loan is finished, you would have collected all the rentals and the house value has increased, would you deduct the [house price + rental] with the [installments paid]? No you would not. In 35 years, the house and the rental collected is yours to keep - no one would be knocking on your door deducting the value of your house because you "have paid RM1k a month for 35 years". You would already have paid for those installments

2. But to help you with the calculation, I will do it anyway. But please, don't take this figure and deduct it from the RM2.483M. If the assumptions are correct (Rate remains as 4.85% p.a. each year, and returns are consistently 6.50% p.a.), the RM2.483M would be yours to keep, no money would be deducted from this, no one will ask you to pay for the interests or installments anymore as you would already have paid for them:

a. After 40 years, suppose the installment remains the same at RM945 a month, total installment paid to the bank: RM453k



b. After 40 years, suppose the installment remains the same at RM945 a month, total interest paid to the bank: RM253k


Dapat. But you need to convert to Islam first
Imagine the ASB dividend for this year is 6.5%. Those who didn't do sign up for the ASBF when they had the chance would have lost money through opportunity costs this year, and last year, and last year, and last year.

All i am saying is that the investors who utilized the ASBF has been profiting off the scheme. The ones who have been losing the opportunity (Time Value Money) can only seat at the sidelines, hoping others who took the initiates would lose money. Kinda sad when you think about it.
See hellkvr, those who are ineligible are so fed up with the situation as they are barred from profiting in this economic activity, yet there are still many who are questioning the feasibility of the scheme. Really sad and funny when you think about it     

Imagine the ASB dividend for this year is 6.5%. Those who didn't do sign up for the ASBF when they had the chance would have lost money through opportunity costs this year, and last year, and last year, and last year.

All i am saying is that the investors who utilized the ASBF has been profiting off the scheme. The ones who have been losing the opportunity (Time Value Money) can only seat at the sidelines, hoping others who took the initiates would lose money. Kinda sad when you think about it.

Yeah man, tu yg kecewa sikit. Why  didn't I find out earlier about ASBF. Started my ASBF at 32y old. Rugi bnyak tahun dah ni

Yeah, definitely. But there are a few assumption that you need to make, as per any investment return calculation

1. Financing rate is currently at 4.85% p.a., with a 40-year tenure

2. Last year ASB return was 7% p.a.

Since this is a financing (amortization) and an investment (compounding interest), you can't calculate the total returns by simply finding the difference between the two figures. You need to run both accounts (loan and investment) amd compare the results. Check out the examples below.

As per any calculation, we need to make some assumptions. We are assuming that the interest and installment remain throughout the 40-year tenure at 4.85% p.a. and RM945/m; as well as a yearly return of 6.5% p.a., with compounding interest (meaning distribution is allowed to be reinvested into the fund)

a. Loan account, total payment of RM0.453M


b. ASB account, total return of RM2.483M

say no to tongkat offering aid to bumis means look down on bumis
say no to racism against bumis
I actually have an ASB account

Yeah man, tu yg kecewa sikit. Why  didn't I find out earlier about ASBF. Started my ASBF at 32y old. Rugi bnyak tahun dah ni

lol so now i need that 200k first?

I see, so you are eligible to open ASB account and qualify for ASBF but refuse to sign for a financing ? If you had said this was because of a combination of these concerns:

a. lack of  confidence to service the financing installments,
b. interest-rate risks (variable financing rate)
c. distribution-rate risks (returns may be lower than expected)
d. your portfolio being affected by two (2) risks explained above

Or any form of legitimate concerns that we can both discuss and go over - the worst that could happen was for us to agree to disagree but remain respectful and amicable to each other.

However: "say no to tongkat offering aid to bumis means look down on bumis say no to racism against bumis" is not worth any good response from me.

Have a good day.
The best time to start your ASBF is at the age of 18, the next best time is NOW
No, you just need three (3) months payslip. The idea is that the bank financing would provide you with the RM200,000

Bro in what condition i can get 200k with that payslip?

See hellkvr, those who are ineligible are so fed up with the situation as they are barred from profiting in this economic activity, yet there are still many who are questioning the feasibility of the scheme. Really sad and funny when you think about it     

I see, so you are eligible to open ASB account and qualify for ASBF but refuse to sign for a financing ? If you had said this was because of a combination of these concerns:

a. lack of  confidence to service the financing installments,
b. interest-rate risks (variable financing rate)
c. distribution-rate risks (returns may be lower than expected)
d. your portfolio being affected by two (2) risks explained above

Or any form of legitimate concerns that we can both discuss and go over - the worst that could happen was for us to agree to disagree but remain respectful and amicable to each other.

However: "say no to tongkat offering aid to bumis means look down on bumis say no to racism against bumis" is not worth any good response from me.

Have a good day.
The best time to start your ASBF is at the age of 18, the next best time is NOW
No, you just need three (3) months payslip. The idea is that the bank financing would provide you with the RM200,000

ASM/ASM2/ASM3 kan ade

oh wai, berebut-rebut    

No oppose to people making use of it to make money but I do oppose it on the grounds of racial discrimination.

hello. want to ask the limit of rm200k for asb including current asb loan? Later want to topup own money.

is there anyway we can invest more in ASB after reaching maximum investment amount?