Comments on: How To Pay Off Your Home Loan Faster http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/ Investing & Buying Residential Malaysian Property Fri, 25 Jul 2008 16:30:11 +0000 http://wordpress.org/?v=1.5.1-alpha by: Feizal http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-4162 Sun, 14 Jan 2007 19:59:21 +0000 http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-4162 I agree with moo. if you have extra money, do not pay off your loan as the equity that you have is dead money until you sell property or draw cash it out. Better to put in gold, bond or high interest deposit account to capitalise on the the power of compound interest. You will find that you will be better off using the money to work harder for you to generate more wealth rather than pay the money to the bank which end up as dead equity. I agree with moo. if you have extra money, do not pay off your loan as the equity that you have is dead money until you sell property or draw cash it out. Better to put in gold, bond or high interest deposit account to capitalise on the the power of compound interest. You will find that you will be better off using the money to work harder for you to generate more wealth rather than pay the money to the bank which end up as dead equity.

]]> by: moo_t http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-2210 Fri, 19 May 2006 11:36:37 +0100 http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-2210 You FORGOT to take INFLATION into account. With an average inflation rate of 4%, RM1000 only remain 60% of its value after 10 years. I will rather advise people to use the extra money to buy golds, which at the end of every decades, you will find you have more money reserve than paying extra money just to save the depreciated ringgit interest. You FORGOT to take INFLATION into account.
With an average inflation rate of 4%, RM1000 only remain 60% of its value after 10 years.

I will rather advise people to use the extra money to buy golds, which at the end of every decades, you will find you have more money reserve than paying extra money just to save the depreciated ringgit interest.

]]> by: preacher http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-2207 Thu, 18 May 2006 16:56:23 +0100 http://propertymalaysia.blogsome.com/2006/05/18/how-to-pay-off-your-home-loan-faster/#comment-2207 Based on a simple calculation, a HL of RM250K for 20 years @ 6.1%, the total interest payable is RM183K. For the same HL amount and tenure but at 7.1%, the total interest payable is RM219K. This means that if you only paid the minimum amount, at the end of the loan tenure, you still owe the bank RM36K. Quite a large amount, considering that you'll be retired in 20 years time. This means that we should pay extra to our HL whenever possible cos RM36K spread over 20 years is only RM150 extra a month which is very managable. Based on a simple calculation, a HL of RM250K for 20 years @ 6.1%, the total interest payable is RM183K. For the same HL amount and tenure but at 7.1%, the total interest payable is RM219K.

This means that if you only paid the minimum amount, at the end of the loan tenure, you still owe the bank RM36K. Quite a large amount, considering that you’ll be retired in 20 years time.

This means that we should pay extra to our HL whenever possible cos RM36K spread over 20 years is only RM150 extra a month which is very managable.

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