need advice

I'm buying another property in Penang. ~5km from Bukit Mertajam and ~2km Kulim, double storey terrace house. 20x60 sqft. selling at RM95k. got security guard also in the housing area.

OR

in Kulim, taman selasih. terrace, single storey, corner lot selling at 85k. big area and can renovate some more.

which one u think the best? just asking opinion here he he.

ASB loan

to those of you who already had ASB loan from local banks, just carry on. this is just a friendly advice for my friends who have not done so.

ASB is incorporated by PNB as BUMIPUTERA ONLY trust fund, as an incentive to encourage saving habits to bumis and enculcate investment without exposing them to unnecessary risks.

however, most of malays are lacking the fund to join ASB to reap its full benefit. average return per year is around 7% lately.

this is where banks giving away loans for this fund.

i read through the internet, and i reached to a conclusion that taking loans for asb is not a smart method of investment.

unless you cannot discipline yourself in saving your money.

banks saw this as an opportunity to gain money without exposing themselves to unnecessary risks. offering at BLR -1.25% (actual rate of some bank) this seems attractive. i, however, see this just as another alibaba license. banks dont have to be a malay to invest in asb, rather, they used their customer's name in obtaining asb certs.

and during bad times, BLR can go as high as 12%. instead of you getting the dividend, you are paying the banks for nothing! i know this is the worst case scenario, but no one can predict the future.

it's better you save your money little by little. you will have full control of your finances and who knows, maybe you need extra funds in emergency?

unless you cannot discipline yourself and need to be forced to pay monthly loan, don't take ASB loan because it's just a way banks make free profits with minimal risk.

i hate it when i thought of working for the bank for free. i expect them to pay me, not the other way around.

i know the loan means you have a leverage for your money in the long run. however the return is too small <10% making it unattractive, at all. only make loans where you can be confident that the spread is more than 10%.

well, that's just imho. any comments are welcomed =)