Maybank raised my interest rate from 5% to 5.25% but monthly payment still the same.
Is that normal?

And for CIMB, any changes?

Wow great bro buggie. Congrats.

Yes normal. Loan tenure increase however.

Same for cimb and other banks that provide asbf facility. All of them already increase their BR.

If BR drop, will loan tenured reduce? Just asking

Seen the numbers and if I deciphered correctly.. It's same ol, same ol., Compounding still tops.. It thought there's some other "secret" method.

Nice.

Just reading more about ASB loan strategy.

- Lets say I already have 45k in my ASB.
- I loan 200k for 25yrs, 1200/monthly payment to the bank.
- So I split it to 200k in ASB & 45k in ASB2.
- I use the money in ASB2, to pay for the 1200/month for the 1st year.
- After that, I can use the dividend from ASB to pay for all the future monthly payments, and still have ASB2 for emergencies.
- At this point, I'll get dividend from both ASB & ASB2, while I still can top up ASB2 with my monthly income.
- Continue on until end of 25yrs and I might be a millionaire in my 60s.

Just wondering if this strategy would work in my case. Unless there are things that I still haven't taken into consideration.

At any point during the 25yrs, I can still terminate the loan, and still profit a bit too. Would something like this sound right?

You won't be a millionaire doing this Bro. At the end of 25 years, you'd have 200k in ASB and about 500k in ASB2 if you contribute 500 a month from your salary. If you contribute 1000 a month then you'd have just a bout a million (200+800)

But if you can afford to put in 1000 a month, then I'd suggest stretch out a bit and paying the loan with cash every month. Don't usik your ASB2. You'd end up with 1.2m (1m+200k). More if you dump into asb2 as your salary increases. Or better yet take asb2f when your budget permits. I'm sure in your journey to 25 years you'd be making more money than now.

The ASB amount doesn't increase past 200k? Is it because I use the dividend from each year to pay for the monthly payment?

Ohhh, I get it now. So it only works if I pay the loan off with cash, instead of using the dividend. Thanks for the clarification!

This post has been edited by borneoman1: Apr 9 2018, 07:09 AM

Yup, since the dividend is taken out so nothing to compound.

But it still works... just to a different end. You still get the 200k 'free' or rather for an investment of 13+k.

Different people employ different strategies in accordance to their current state of affairs. There's no right way or wrong way. Just different strategies for different outcomes.

Interesting diagram sir. But I have got 1 question, is the value of the money saved still stay the same? Since it will get affected by inflation?

This post has been edited by 1depp1: Apr 9 2018, 05:00 PM

From the diagram i projected with the average highest interest rate at 5.2% which cimb currently right now at only 5.05%...and the dividends i projected at the lowest at 6.75%..from the diagram..although im calculating for the worst scenario it still projected profits..so if the dividend is higher and interest rate is lower u should be making more money out of it..no worries..asb is a form of unit trust controlled by the federal so the dividends by average will maintain around 7%..dont worry..

Of course compounding will give better amount of money because save more money in it..huhuhu..like i said..depending on person capability and their target on how much to earned by certain time period..n the secret technique on how to get 200k certificates with only the amount contributed like 100k cert at 5++ only..hahaha..lets have some coffee and talk about it,,

alright.. but, I know this is ASB thread, but I just want to ask what my friend who is a property investor, in 5 years he can make 60k+ without even counting in rentals.. Just wanted to ask for your feedback.. sorry if different topic.. just wanted to see ASB and property investment vessels.

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This post has been edited by 1depp1: Apr 10 2018, 04:54 PM


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Sure I understand.. Be careful with the offer of coffee, I just might take you up on it..

Your pal gambled or took a calculated risk and it paid off. Doesn't necessarily mean it always will. As you mentioned, different forms of investment. Here's the thing, properties have netted people millions within a few years to under a decade. Same strategy can also net you losses in hundreds of thousands or millions too and you'll still need to pay back the bank loan.. Well of course, unless paid cash. Basically, can go either way. If you buy the right stuffs and it matures nicely in a couple years, enough to offset bank loan interests amongst other upkeep? Sure, jump in but do your research first. As with any form of investment, I would never simply invest my cash based solely on my friend or family members' words. Even ASB, as per prospectus can "crash" lower than loans interest rates too. Ain't nothing like 100% guarantee..

Edit: From the pic, looks like your pal didn't factor in the cost of paying back the bank loan plus interests. Simply calculated that monthly payments all went into offsetting the principal amount. Which as we know is definitely not. If so, sure less than 60K.

This post has been edited by voncrane: Apr 10 2018, 05:22 PM

Asb financing and property investment is different totally. This is include the risk, the cost and the strategy.

However both can be combine together. For example use the asbf dividend to cover for the house intallment and vice versa (renting to pay for the financing)

For property example renting, u need to find tenant and bear the repair cost if any after the tenancy is end or terminated.

If u want to sell the property u need to find the buyer. This might take a while moreover if the selling price is higher than the market value. Currently not many people can afford to buy a house so its quite challenging to find a buyer. Till u find a buyer u still need to pay for the installment and u must ready for it. If not u might end up lose the house to the bank. This is the risk u must understand.

While for asb financing the risk is only if the interest rate is higher than the given dividend. If this happen the loaner might end up pay more and the return is little. However so far pnb doesnt fail to give gud dividend to their investor and also the interest rate is still relevant. To take advantage of asb financing u just need to know what is the technique suit with your objective and capability. You also can terminate your asb financing anytime and enjoy your profit. Asbf consider as a low risk investment.

Hope with the explanation above will give u something what to do or choose. Both are gud investment platform.

-haziq-

This post has been edited by haziqnet: Apr 10 2018, 10:27 PM

Bro buggie already explain well. I just add a few suggestions here.

With the 45k cash u have,

First, you can use proxy to apply for asbf. At least for the first and second 200k (total 400k). The rest u will save it into asb 2 acc. By doing this u will get more than only make 200k asbf and the balance put into asb2 acc. U only can do this if u have wife or trusted siblings because u will need to use their name as the main applicant during application. This is one of the technique u can use in asb financing and quite popular one. (Payment use roll dividend technique)

Second u can apply both asb and asb 2 financing total 400k. (Currently asb2 is open again but very limited) - (payment use roll dividend technique)

Third u can apply 200k, and pay the installment until your 45k cash is out. Thats mean u will compounding your asb financing for several years (about 3 years) before u change it to roll dividend technique to pay for the rest of the instalment. Within the 3 years your dividend compound value is about 45k. Great right.

The 3 technique above will maximize your potential return out from the 45k cash u have.

Additional note : if u gonna use roll dividend technique if your loan tenure is only 25 years u might need to top a bit every year because the dividend is not enough to cover the whole year installment.


-haziq-

This post has been edited by haziqnet: Apr 10 2018, 10:28 PM

Edited

This post has been edited by haziqnet: Apr 17 2018, 09:12 AM

Assalam just want to inform u guys currently cimb have promo 5% for asb1 and 2 financing.

BR+0.85% + 4.15% = 5.00%

Promo end 31 may 2018. Loan must be approved before or on 31st may 2018.

More info can private message me thank you.

Any minimum?

50k and above eligible for this 5% promo

Hey guys,

Just would like to inform that ASB2 is no longer available for subscription so if anyone is still interested in taking ASB financing, Ambank is still having a promo @ 5%. Additional rebates will be personally given as well so do feel free to PM for more info.

Thanks