if i take a loan of RM100,000 at an interest rate of 12% per annum (1% per month) and re-invest this 100k into another guaranteed investment banking program offering 24% per annum (2% per month), would this make sense?
at 12%p.a. for a tenure of 5 years, the month repayment is RM2,666.66 a month. the monthly interest generated from the re-investment at another bank's program, i.e. 2% per month, is RM2,000. by just paying RM600+ every month for the next 5 years, and having a total paid up value (after 5 years) of only RM40,000, you would have created an asset of RM100,000!
now after 5 years, you won't have to service the original loan of RM2,666.66 a month anymore, cause the 100k loan is now paid up liao! but while you still keep your RM100,000 with the other investment bank, you will still be earning the 2% a month. and that's like RM2,000 every month as long as you keeo the money there!
so in conclusion, i would have only paid RM40,000 and I now have RM100,000 solid cash, plus RM2,000 every month! good deal? its real. call me, if you are keen.