this guy is an accountant

Lol, you butthurt so badly in kopitiam until you take my post out of context from there to here? Grow up. Kibod warrior betul.

Just to show how good ur calculation is.. Anyway it's the same topic. Asb loan

I just did some simple calculation. ASB Loan vs Without ASB Loan.

Assume monthly repayment is Rm1,200 for Rm200k with loan tenure 25 years.

Without Loan 25 years

Starting
Principal Rm0
Monthly Deposit Rm1,200
Period 300 months
Dividend 7%

After 116 months
Principal Rm139,200
Dividend Rm60,150
Total Rm199,350

Month 117 - 300
Monthly Deposit Rm0
Dividend Rm381,955

After 25 years
Principal Rm199,350
Dividend Rm442,105
Total Rm581,305

----------

Loan 200k 25 years

Starting
Principal Rm200,000
Monthly Deposit Rm0
Period 300 months
Dividend 7%

After 25 years
Principal Rm200,000
Dividend Rm945,083
Total Rm1,145,083

Loan Rm200,000
Interest Rm160,000
Total Cost Rm360,000

Profits
Rm1,145,083 - Rm360,000
Total Profits Rm785,083

----------

Without Loan Rm581,305 vs With Loan Rm785,083

----------

Do correct me if I am wrong. Maybe I might miss some of the calculations.

This post has been edited by POYOZER: Sep 5 2016, 01:16 AM

Quite a few wrongs there buddy....

First, for without loan, you cannot deposit RM 360,000.00 as the max you can deposit is RM 200,000.00. So you are stopped right in your tracks there in terms of injecting more cash into ASB.

Second, for the loan calculation, you shouldn't minus the 'cost'. This is because in both scenarios, each would pay RM 1,200.00 per month. The interest is already factored in. To put it simply... At the end of the day, how much would each have in the bank to FREELY utilize? The loan guy doesn't have to give back the bank RM 360,000.00 at the end does he? NOPE. He is free to spend RM 1,145.083.00 as he sees fit. And the non-loan guy gets to spend his RM 977,756.00

SO.... loan actually earns more by : RM 1,145,083 - RM 977,756 = 167,327.00. Although, the non-loan guy would never ever able to reach RM 977,756 as he could only actually deposit RM 200,000.00 and not RM 360,000.00. Once he does reach the max 200k, he can only sit and watch while compounding interest takes over. And this is even before we apply the different techniques like terminate/reaaply every 3 years to further boost the ROI.... it would leave the non-loaners in the dust left behind by the loaners...

This topic has been argued or debated countless times and it has already been established beyond any shadow of doubt that Loan earns more.

Correction of caculation without loan



Without Loan 25 years

Starting
Principal Rm0
Monthly Deposit Rm1,200
Period 300 months
Dividend 7%

After 116 months
Principal Rm139,200
Dividend Rm60,150
Total Rm199,350

Month 117 - 300
Dividend Rm381,955

After 25 years
Principal Rm199,350
Dividend Rm442,105
Total Rm581,305

-----------

Btw for with loan, the one i calculated previously is to get the nett profits after deduct the cost Rm1,200 x 300 months.

This post has been edited by POYOZER: Sep 5 2016, 01:28 AM

The calculation needs a little tweaking as ASB actually differentiates between dividend earned and deposits. Hence you don't need to stop at month 116. You can further deposit until you reach 200k.

Why do you need to look at nett profit? If you would like to compare apple with apple then consider that both loan and non loan contributes RM 1200 per month for 300 months (assuming possible for non-loaner).

The difference is that the loaner pays to the bank and the non-loaner pays to his own ASB account.

At the end of the 25 years both guys goes to PNB and withdraws all they have and put it all on the table in front of them side by side. Who has the bigger stack of cash? Sure the banks take some, but does that really matter when you still have the bigger stack?

Noob question. If I am interested in ASB loan and only have budget RM200/mth, the loan amt I can take is about RM30k for tenure of 20 years (based on MBB schedule) and if let's say, I decide to terminate the loan at the 5th year mark, is it worth to take up this loan? Or am I better off just putting in RM200 into ASB monthly?

Aku buat loan besar bro ASB dan ASB2.. memang aku guna duit dividen untuk bayar ASB dan ASB 2 Loan.

Ok lah tu.. modal untuk 2 akaun cuma 30k.. selepas 25 tahun dapat 400k dengan hanya rolling duit dividen sahaja.

Pada aku lain orang lain cara.. buat loan dalam amount yang besar dulu baru boleh rasa feel dia..

I dont want to wasting my time took out the money from ASB and ASB 2 to serve Loans.

Rugi setakat 1 peratus is no problem with me as long TH also provided dividen.

some people with a different styles to draw their financial pattern & strategies. For me, I suit with that style of method. And already did this few years before. And this pattern benefits me without any prejudice.


Kuddos

100% agree..loaner earn more because he start with 200k in his asb account while non loaner from 1200 as starter...compounding interest is fully utilize when u start big...they can earn more at the end of the maturity date...

Dun worry bro...start with little first is ok...if u r young make the max loan of 30 years with the afford amount u can and keep paying for atleast 5 years...after 5 years surrender your asb and use that money to pay for your whole year 200k asb loan....from here u just need to use the dividend money to pay for your loan....this is one of the easiest way and without to burden urself paying the high monthly commitment...but pls take note with this technique u wont be able to utilize the full benefit of compounding interest...but atleast u can earn more than 200k after 30 years...still a good amount for retirement right?

Pm me for futher intruction...i can help u to calculate the max loan amount u can apply

This post has been edited by haziqnet: Sep 5 2016, 05:56 PM

Satu kat asb satu kat asb2 ke?
Aku cam ada terkilan sket letak 1/3 loan amount aku kat asb2. Nyesal dengar pujukan staf mebeng.

Ya. Aku dah penuhkan dua akaun ASB tu.. Guna duit dividen rolling asb dan asb2 setiap bulan. Ambil sikit2 dari Tabung haji secara online. Pindahkan ke akaun Maybank.

Malas aku nak pergi bank tiap2 bulan keluarkan dari ASB dan ASB 2..

This post has been edited by adymfi: Sep 6 2016, 08:33 AM

Is getting asb loan from maybank difficult compared to other banks?

Why would that be?
I have 2 MBB ASB loan. Should be the same with any other bank

klu loan guna asb2 rugi sedikit..tp x byk manapun...sbb asb 2 interest dia kurg sedikit berbanding asb 1...so sbb tu di syorkan klu nak buat loan mesti guna asb 1 dan asb 2 bole utilize yg guna dividen utk byr loan...asb 1 guna duit sendiri...so compounding interest dpt lebih byk...


yes some bank are quite difficult...like affin and maybank...but for cimb less difficult compare to others...how do i know? because when i proceed for my wife loan on both bank affin and cimb using the same documents, only cimb approved my loan...affin bank rejected it...

Guys,

I think people need to grow up their account limit. If not capable using their own money, do it with loan and let it compounding.

At the end of the day, when you ready to retire, and do not want to handle property management problems, you can sell it and put the profit into ASB/ASB2 and enjoy the passive income(dividend).

By that time, your account limit already grow and you can terminate the loan and replaced it with own cash.

If you keep using the dividend, the limit will not grow as quick as it compounded.

my opinion.

Yes. Agree with the above! Grow the size of your ASB by always keeping at max. Every year your limit will increase when the dividend stretches it

Kalo guna dividen bayau instalment lagi rugi bang.
Benda da berlaku kan so aku proceed je la. Nyesal gak termakan hasutan abang mebeng hari tu.