We can manipulate the facilities offered by bank and turn it into our investment portfolio.
1. Buy a house and let ppl pay for the asset. But make sure there is a positive cash flow in our budget, means that the monthly rental must be higher than installment for the bank
2. If you can get a house with 70k price and full loan package, make sure the installment less than 500 per month because it’s hard to find a house here in kuantan with rental over than that.
3. There is another option to invest like properties. PPL who are expert in financial used OD collateral with ASB to generate capital that growth by its dividend and bonus. Some simple calculation of OD vs ASB
– You have 50k cash in saving account.
– Transfer to ASB and convert it into certificate.
– Bring the cert to any bank which is offer OD collateral with ASB.
– Take OD with BFR -1% (depend to bank)
– We have cash 50k given by OD and we can rempit for another round to buy ASB, and convert it again into certificate. D0 it until reach the maximum amount allow by ASB 200k. With 200k, we can get 14k per year for its dividend which is equivalent to 1200k per month. It is like we have properties without worry of maintenance or complaint by tenants.
– The exact calculation can get from any finance forum who are extensively discuss OD ASB among their forum members.