Feb 8 2024, 04:13 AM, updated 2y ago
Loan Years: 25 years
Interest Rate: 4%
We'll calculate the monthly payment (M) using the formula:
Then, we'll find the total payment to the bank over 25 years by multiplying the monthly payment by the total number of payments (n):
Total Payment to Bank
=
Total Payment to Bank= M × n
After performing the calculations, the total interest to the bank over 25 years is approximately
RM 175,095.
Add back RM 300,000 housing loan amount,it is equal to
RM 475,095 (total loan amount pay to bank)
Vs
Fixed deposit 25 years of yearly compound
= 300,000×(1.04). 0.25
= RM 780,000
RM 780,000 - RM 300,000
= RM 480,000 (total interest earned)
| Principal | Interest Earned | Maturity Amount |
| RM 300,000 | RM 480,000 | RM 780,000 |
Only RM 5,000 difference.....
Can someone confirm this? - Housing loan is calculated on a daily rest basis, while FD is compounded annually.
If neither the loan nor the fixed deposit is touched, will the housing loan still cost more?
Therefore, is it better to clear the housing loan first before putting money into a fixed deposit?
It is better to put your money into an EPF account to enjoy a higher interest rate than an FD.
You can still withdraw the money to pay your housing loan if the need arises when you reach age 55.
Good?
QUOTE
My REITs and blue-chip investments yield over 6% returns. With RM 400k, I can receive around RM 24k annually or RM 2k monthly in dividends.
If I invest RM 400k in high-rise properties, considering net rental income (after deducting maintenance fees, repairs, dealing with troublesome tenants, vacancies, etc.), can I still expect to earn RM 2k per month?
High-rise properties are currently being sold at future prices, with prices stagnant for the past few years.
There are many units being auctioned off, and new condos are being built nearby, selling at similar prices.
After some years, people may prefer newer units, making it challenging to sell older ones.
Indeed, it's becoming increasingly difficult to profit from property investment, with only agents profiting from property sales. Unless you're simply looking to diversify your investment portfolio.
Many of my middle-aged colleagues have liquidated their property investments to increase their EPF savings to over 1 million. This way, they can cash out some dividends every year for spending.
If I invest RM 400k in high-rise properties, considering net rental income (after deducting maintenance fees, repairs, dealing with troublesome tenants, vacancies, etc.), can I still expect to earn RM 2k per month?
High-rise properties are currently being sold at future prices, with prices stagnant for the past few years.
There are many units being auctioned off, and new condos are being built nearby, selling at similar prices.
After some years, people may prefer newer units, making it challenging to sell older ones.
Indeed, it's becoming increasingly difficult to profit from property investment, with only agents profiting from property sales. Unless you're simply looking to diversify your investment portfolio.
Many of my middle-aged colleagues have liquidated their property investments to increase their EPF savings to over 1 million. This way, they can cash out some dividends every year for spending.
QUOTE
***** The interest charged on a housing loan is likely to be lower than the interest earned on a fixed deposit (yearly compounding) because mortgage interest is based on the reducing balance, not on accumulation. ******
So which one better?
This post has been edited by plouffle0789: Feb 8 2024, 02:26 PM
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