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ASB loan, worth to get it???
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MEAKU15
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 Jun 5 2014, 07:59 PM
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Getting Started
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hey all - questions.. in the mids of getting an ASB loan.
let say if i have cash 25k in hand. I'll take loan 200k for 10 years. For the first year the monthly instalment will come up to 25k. So if i pay the 25k in hand for the first year, i am settled for the rest of the 9 years right(revenue generated every year will be used to pay the monthly instalment for year 2nd till 10th)? so by the 10th year, i'll have 200k in hand and plus the revenue.
Am right? or is there a better way to go about this?
Thanks !!
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MEAKU15
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Jun 5 2014, 10:17 PM
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Getting Started
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QUOTE(backspace66 @ Jun 5 2014, 09:10 PM) hello, i suggest u learn the basic of investing first. Learn about the yield of ASB first. Assume ASB yield is at 8%. From the 200K you invested, you will get 16K. Sorry for stating the obvious, 16K is less than 25K, you still have to top up 9K every year. my bad!! i got it all wrong... i missed that part when the return is lesser than the yearly monthly commitment... so that means ... i gotta go for longer period of repayment. what would be your suggestion? |
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MEAKU15
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Jun 5 2014, 11:40 PM
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Getting Started
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QUOTE(dreamer101 @ Jun 5 2014, 10:20 PM) backspace66, 1) You are right. But, if the person make the loan last longer like 15 years or 20 years until the monthly installment is only 16K per year, he will not need to top up. 2) With 10 years loan, the 200K is increased by 16K per years. Assuming 8% dividend yield, when the principal of the ASB reaches 312K, he would no longer need to top up. That happened in year 7. 200 16 216 17.28 233.28 18.6624 251.9424 20.155392 272.097792 21.76782336 293.8656154 23.50924923 317.3748646 25.38998917 Dreamer Thanks that is correct.its either I lower the amount or go for longer loan period. |
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MEAKU15
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Oct 21 2014, 04:12 PM
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Getting Started
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I've already taken a loan for 200k. About 5 months edy, can i still request to split my cert to 100k to 100k?
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MEAKU15
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Oct 22 2014, 12:17 PM
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Getting Started
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QUOTE(navink @ Oct 21 2014, 04:28 PM) nope..  too bad - thanks for the answer though |
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