Free money. But must have black and white also witnesses to be safe.

20:80 better rate tbh

Approx. 3k per year

20% of 7% = 1.4% return.

Same as everyone else who are getting about 1% return also, after asb loan interest.

And since interest rate just got raised, maybe you are doing better. Take it. Also, pass me her number. For research purpose.

For short term 1-2 years it's worth it. but long term you'd lose out.

It takes 25 years to compound 200k @ 7% to 1M

If you take her proposal, then at the end of 25years, you'd get 200,000.00 free money.

But if you took the loan, assuming 1200 per month for 25 years, you'd have 1M - 360k = 640k

That's why i mentioned opportunity cost

Hi,

Just to update on Ambank ASB/ASB2 financing rate -

Following the recent 0.25% increase in base rate, our current promo rate has increased from 4.75% to 5%. Requirement is still the same whereby it is only applicable to 100k and above. Also there is no lock-in period and takaful is optional. In addition, I will personally offer loan rebate and stamp duty waiver.

Should you have any enquiries regarding the above, do feel free to drop me a PM.

Thanks!

I was reading a letter sent by a reader to KC Lau's website. The guy said that he applied for 200k ASB loan and paid it off with his RM15k savings. How is that possible? Enlightened me please....

Here's the link: https://kclau.com/investment/asb-young/

He didn't pay it off.. It's a story of a time when people were told that if they only paid for the first year's loan installments, that the dividends accrued will be enough to keep paying the loan for the rest of the tenure. Doing that means you lose out on the power of compounding and besides such tactics are invalid for today.

Just trying to understand this ASB Loan. Not everyone can ikat perut to pay 1k+ asb loan especially with the current high cost of living. Assuming that a person only can spare RM500 per month, what is the recommended feasible loan amount to take, loan ternure and at what point to terminate? Appreciate your advice.

Yes, not everyone can.. Which is why different loan amounts and plans exist. I don't care if investment or not. Never take on too much loan for anything than you can handle.. It's not worth it. Cuz if you suddenly have to terminate and still owing the bank, bank don't care.. You must pay what is owed.

As for which amount for monthly payments of RM500.. This you have to refer to agents as they have the latest numbers and options that can be applied. Sorry, I can't help there.

RM90 - 95k, & 25 - 30 years

What would be a recommended year to terminate then? Sorry a bit noob on the calculations part.

Well said

Try to read the last few pages to learn more.

y not...
asbf 200k, 4.8% = 1050
1 year = 12600
asb dividen 14500
14500 - 12600 = 1900

asbf 100K + 100K.. hybrid.. rolling dividen + duit sendiri

This post has been edited by HolySatan: Feb 8 2018, 05:45 PM

Simple...from the last few pages, you should know... Interest rates increased, dividend amounts, to insure or not to insure...Don't get me started on the long-term profits of leaving the dividends in versus taking it out.. That in itself should be a de-motivator in the first place.. Besides, assuming dividends of 14500, leaving that in alone will nett you an additional RM1000+, at pure 7% interest.. This is minus the interest of the previous 200K+

Well, if your plan is to grow your money in tiny bits year by year while still bound to a bank loan.. Sure, be my guest.. Remember, we are talking one year here.. 12 months.. 2K-ish per year is pretty much peanuts for being tied to a contract.. Other ways of making that in far less time.

This post has been edited by voncrane: Feb 8 2018, 06:01 PM

asbf can terminate anytime..
profit asbf : dividen + prinsipal
better untung sikit daripada rugi

Practically can be done... The whole dividend pay for the coming year loan payments thingy... But to do that is such a waste of a compounding machine.... Not utilising to its full potential

This post has been edited by buggie: Feb 8 2018, 07:37 PM

He pay for his loan installment for 1 year. So after a year he can either use the dividend to pay for his loan or terminate it and earn profit (flipping).

The best method for flipping for me la, use proxy to max the opm as much as he could if he can afford. Let say max opm till 1 million, after 1 year terminate the loan he could get about

Principal sv = 14,622
Dividend = 72,290
Total = 86,912

Total capital = 64,785

Nett profit = 22,127

Thats a lot of profit in 1 years.

If he want to get more go for short loan tenure or increase the opm.

This post has been edited by haziqnet: Feb 10 2018, 07:23 AM

Yes correct bro buggie.
Compounding is the best at least min 5 years. The best is 10 years and above.

For those who cant ikat perut to pay 1k+ asb loan, hybrid technique is the best. He can maximize the opm and only pay for his 1st loan.

He can start as low as 10k which is about 54.91/month. Than every years apply new loan until it reach 200k. He also can still add more loans if he have proxy.

Your question is very subjective. If u r ask me what is the feasible loan amount to take this depend to how much u can pay monthly. Loan tenure best is 30 years. Less pay and more roi. What point to terminate depend to ur objective how much u want to earn before terminate.

Sure can terminate anytime.. Doesn't mean have to be go about it the counter-productive way.. Oh yeah, hope you factored in inflation. Consumer prices in Malaysia went up 3.5% from a year earlier in December of 2017, following a 3.4% rise in the prior month and matching market consensus. Cost of food & non-alcoholic beverages and transport rose faster (source: BNM).. Sure the country also experienced stronger GDP growth, but have to ask oneself. Are you part of the group with income growth parallel to the GDP? Most likely, No.

Which is why I chuckle when people simply assume that as long as dividends is greater than amount invested, it's all good. Nope, if only smart investing was that simple.. Must weigh in other opportunity costs. Otherwise it's similar to pumping out the same amount water that's coming into the boat. I'm gonna stop here.. To compound the proper way for max gains or not?.. Well, that depends on each individual. Regardless, the house never loses.