Yes. That would be a good strategy. Earn 12%+ while only servicing 5% interest

what's the benefit of a higher post count?

Stress relief don't feed the troll... Bash it! 😂

This post has been edited by buggie: Apr 6 2019, 10:16 AM

Just did some simple calculations in my head... Didnt realise this as I don't usually bother about ROI

For my 600k loan, I'm paying 3300 a month ie 40k a year.

At a modest 6% dividend, I'm earning 60k a year.

This asbf is earning a yearly ROI upwards of 50%! And that's using conservative calculation and even before taking into account of taking back principal amount...

And the ROI will only get higher with the compounding interest because my yearly 40k remains constant

Pretty good returns if you ask me

Never had a problem terminating. Believe it or not I used to manage to terminate first week of the month and refinance loan disbursed by end of the month. So lose only 1 month dividend.

But it takes planning, and timing and banker has to know beforehand your target To disburse by month end. If they really want your business they can do it

Can't answer that as I've never had a problem.

Just plan and talk to the banker. Start before the beginning of the following month so the certificate is withdrawn on the first week. Thereafter push and push and push... Haha

Worst come to worst you lose 2 months but its still worth it imho

1. Yes.
2. Investing it would be an ideal route to take. You'' get to your target faster. Personally, I used it to pay the downpayment of my first car (kancil), pay for my wedding, a 12k gaming PC and holidays. So it was for necessities early on, then as a reward system to keep me sane.

What app is this? The myasnb portal?

Subtle... very subtle

Actually, for the cash flush folks it's still better to take the asb loan. Once you calculate, you will see.

The latter imo. Asb loan is never ever about settling it.

You want the lowest monthly repayment for the maximum return on investment.

Settling the loan was never on the agenda.

The concept here as discussed many times is the power of OPM, other people's money

If you settle... It becomes Your Money... And u lose that leverage

announced? how much?

Not to mention that you can only inject your own cash up to 200k for ASB/ASB2. So there will be a time when they can't pump in anymore money even if they wanted to.

I remember one genius said its better to save. When asked for calculations after a long banter back and forth, he included a lump sum cash dump for the savings part followed by monthly savings but the loan part starts from zero. Then says savings is better... lol

Not possible.. Capped by PNB

Yonder years ago can... Myself on 400k loan. Not anymore unfortunately

Hopefully they open again.

Anybody know why they cap? Isn't it better for PNB if more funds are invested?

This post has been edited by buggie: Sep 14 2019, 10:13 PM

As long as dividends > repayment, why not?

Unless you have another investment vehicle giving consistently more

For me, I'm paying 36k a year. At 5.5% I'm earning 55k for a net gain of 19k a year.

Even if dividend drop to 4%, I'll earn 40k for a net gain of 4k. So unless I can find an investment vehicle earning me more than 10%per annum for my 36k, I'm sticking to this.

Even more appealing considering the fact that it's not even a lump sum 36k investment... Its an installment of 3k a month but earns you dividends as if you dumped the whole sum from the beginning, giving you a whole lot of flexibility.

This loan is pretty hard to beat.

This post has been edited by buggie: Sep 16 2019, 11:12 AM

Firstly... Whats wrong with bank untung banyak? There always that negative perception to "bank earning interest banyak" so therefore this loan is no good. As if bank untung-ing is a big no no. Banks are in the business of making money. People need to understand that. Instead... Concentrate on how much YOU will earn.

Ive copied and paste my post somewhere in mar/apr earlier for the your benefit and the benefit of new readers :-


ASB loans is not just about 5% vs 6.5%.

Lemme simplify things for the benefit of new readers. On parameters 30 years loan and 6.5% dividend (adopted from last year). 3 years and I terminate and walk away.

I paid:
1,100 x 12 month x 3years= 39,600 (actually less – I rounded up)
I get:
41,500 (dividend) + 9,000 (amortised) = 50,500

So let’s recap. After 3 years:
Money OUT : 39,600
Money IN : 50,500

There’s no hidden things here. After 3 years when all is said and done if I wanna walk away from this investment i would’ve paid 39,600 to the bank and received 50,500.

That’s 27.5 % Return

And that is in today’s lansdscape. Now there will be some ppl that say dividend rate will drop as they do every year, historically.. yada yada yada.... Even if it drops to 6% you still get the coveted 18% ROI and that’s if the banks don’t revise their rates downward to make it enticing for investors.

Now let’s talk about opportunity cost and strategy. Yeah sure times are bad now. But it won’t always stay this way. So what you wanna do now is appreciate your capital. Accumulate and build up that capital which will ultimately earn you more when things look up. If you’ve built up a size of up to 1m already, just imagine IF things started looking up and ASB dividend goes up to 7% or 8% or even dare I dream to the glory days of >10%

The person that is savvy has positioned himself to earn dividends on 1M whereas the ill-informed and nay-sayers would just then start out at 200k because it looks good NOW. And by the time they've built a sizable capital, the economy dips again. The irony of it all.

If the glory days don’t come back then well.... just be content with your 18-27% returns

This post has been edited by buggie: Oct 18 2019, 07:12 PM

By the way... 2.5 months to dividend!

Anyone stoked yet?

Google is your friend

Buzzkill! Hehe

Nvm... Just ride out these bad times. Weather the storm. Put yourself in a position to gain the max advantage when the economy inevitably recovers. Plan now!

This post has been edited by buggie: Oct 20 2019, 07:02 AM

Just got a letter from tiger bank. My monthly repayments reduced by RM40.00.