I save my own money, without taking up the asb loan so far.

Yes, you can ask for a standing instruction, how much you want yo be deducted from your account and credited into asb.
Are you working?
There's a form for this.

Hi,

No, not yet working, officially speaking. Hence the reason why I took a loan (bigger starting capital, low monthly repayment [RM180]). Once working, I will finish this loan ASAP (less than 25 years) and start saving using own money like you guys

Ok, whatever suits you.. Good luck
It's good that you have the awareness to save money. Start early.

i had this asb loan for about 4 years already and in my calculation i already have a good outcome from this.

in 2009 I started an ASB loan for RM 200, 000 with installment of RM 1053 monthly.. i'm paying them monthly without miss by using my own money and keep the dividen in the account for emergency cases( luckily this event yet to happen).

to keep it simple we do yearly calculation:

i paid RM 1153 x 12 = RM 13836
so suppose to in 4 years i should be paying RM 13836 = RM 55344 till the end of this year

i don't really pay much attention in my yearly dividen amount but in right now i got almost RM 50K in my account with only 3 years of dividen money.

dividen amount:

1st year : 15 K ++
2nd year : almost 16K
3rd year : 17K +
4th year : should be increasing.. no idea how much.. might be around 18K..

so, if you add up you will get total of RM 66000.. you only pay 55K for those years.. if you do it right, you will get the benefits..

Hi,

1 - 200k loan for 25 years, yes?

2 - We can shorten the loan by lump-sum payment if we want too right?

1) yes, i made the longest possible term to reduce the installment since i was a student that time..

2) i think so, but IMO, it will be better if you keep in paying and watch your money grow since there is a limit on how much you can keep in ASB.. it will be better to max it out..

It is VERY IMPRESSIVE that you able to allocate RM 1,000+ per month for ASB.

I am targeting the lowest (RM 30,000) as I am currently a student and RM 180 per month is very affordable for me. Soon as I started working, I am planning to eradicate this loan and using any leftover from the ASB account to fund for maximum loan 200k.

Do you think my ROUGH planning is financially correct?

1)cimb offer 30 year right now, maybank & rhb still 25 year max.

2) why you want to pay more money in return get less money?

Start asb loan whenever you have extra money spare. Afterward you can add more or cancel & reapply for higher loan.

for the lulz, i took a 100k ASB loan for 10 yrs

no specific reason, just trying to build my credit profiling

and it seems to work

Hi acexii,

1 - Thank you for the information. I don't study other bank as Maybank the only bank that provide loan that coherent with Islamic way (personal preference)

2 - "Start asb loan whenever you have extra money spare" - Yes! Can't agree more on this one.

2.1 - We CAN'T add the loan amount. Example - Loan 30k but want to increase to 100k. BUT we can max up the ASB by having pre-existing 30k and apply another loan for 170k. Hence the nett will be 200k. - Source : That beautiful miss whom handle my application.

2.2 - I wonder what is the consequences if you intended to cancel the loan. Based on my understanding, it is quite easy.

Hey, I thought you already maxed up your ASB account.

Its okay if its not, but if yes, how can you add up on the max account? Teach us the way please!

easy

you take out 100k and u loan 100k

the 100k you put in AS1m

ASB dividend: 8%

Loan interest: 5% (BLR - 1.85%)

AS1M dividend: 6.3%

total nett earning: 8% - 5% + 6.3% = 9.3% (more than ASB alone )

leverage your earning while you build up your credit profile

the consequences is..u get more money by doing this rather than keep letting it sleep in that dormant principal but.. how???
actually..the concept is really easy your monthly payment comprises of interest and principal. after x years of servicing the loan, your have manage to pay down the principal.
now once u terminated the loan u will get the principal back together with the insurance surrender value.

to grow more u put this money in other pnb product such as asim etc. which will give around 6-6.5 anually. instead of 0 return if you let it rot in that principal.

my point is..u stand to lose if you service the loan till the end, but if you do this ( by terminating the loan and apply for a higher amount) u will get better roi.
as i said before in this thread.. your roi can reach up to 25% by doing this.

if u are not sure of the term used here. u might want to google first for better understanding.

cheers

Don't study anything yet regarding AS1M, but this sound doable.

I don't know when I may reach this stage, as house & car loan should be the first to consider once you started working, yes?

no.

car = liability

house = asset, yes. but it locks you down to 1 place and u cant grow unless u willing to move out from that house

Liability or not, it almost a must-have subject to travel/work etc nowadays for vehicle.

House, yes. Probably you are right. You suggesting to renting till I decided to permanently settle down in 1 location?

get a bike. it serves the same purpose


house is a chiken and egg thingy


wait till you are comfortable and rich enuf, house price will increase too much liao

buy too early, you're locked in and can't expand your career as freely

Hi boss,

Can you kindly explain by the "x" years of servicing loan?

25% is plain crazy!

do able, but u really need to spend time to do all the paperwork and some initial money to play the dice

Cannot bike, my (future) waifu is too petite . Gotta get a car, a mini or compact one will do for the first 5 years minimum.

Yep, house is really chicken & egg thingy. If I may ask, what is your personal opinion regarding this matter?

ADD : Too bad hospital-provided apartment only applicable in the first 2 years, if I am not mistaken. Renting it is approximately RM 60 yer month!

This post has been edited by Mr.Docter: Jul 1 2013, 11:07 AM