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ABCs of Property Investment

Potentially lower mortgage payments in the near future

When interest rate rises, the mortgage rates will rise in tandem. In other words, we will have to pay a higher amount every month. Then again, if seen from the longer term context, the current rates are very low. Take a look at the chart showing the interest rate movement for Malaysia across a longer period of time. We can see the rates are considered on the lower end for the past 10 years or so.

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ABCs of Personal Finance

Personal Finance 101: You bought the car because it has HIGH resale value?

Someone told me some brands of car have a higher resale value. He mentioned that Japanese branded ones are better than the Continental brands. I think he is right. We just need to note that most buyers of these continental brands did not buy them for higher resale value. They bought those cars because when they drive it, they could feel it being more stable, maybe. They bought the cars simply because it has a premium image to it versus others which could have a reliability image instead. However… we should not be buying a car based on higher resale value.

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ABCs of Personal Finance

PTPTN. When we owe someone money, we MUST pay or be “encouraged’ to pay it back

If I take up a home loan and I did not pay on time, the bank is very likely to take further actions including even auctioning off my home to get back the money to pay for the loans. If I did not pay my credit card debts, at the end of the day, I may be declared a bankrupt by the financial institution. If I borrow money from my friend, I better repay the debt or I may lose this friendship and also all our common friends since this friend will tell everyone else that I did not pay back the borrowing.

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