Newbie here
isn't Tax Loan = Personal Loan? that you have to pay certain amount for certain months?
please enlighten me if this means any other kind of unsecured loan
Newbie here
isn't Tax Loan = Personal Loan? that you have to pay certain amount for certain months?
please enlighten me if this means any other kind of unsecured loan
@Andy SNK Tax Loan = Lower interest then Personal Loan, you still pay back monthly a certain fixed amount.
I personally borrowed an amount whereby I can afford the repayments from my salary. So I no longer have any 'savings' as all my spare income goes to pay off this tax loan. But if you wanted to you could borrow more, then slowly pay back from whatever you invest in. For example, if you take out a $1m unit trust, there is a 1% fee up front when purchasing, but no fees for selling. So you could slowly sell a bit each month with no fees to slowly repay back the loan.
You are getting a large lump sum at a low interest rate, but with high monthly repayments.
The benefit is well, the large lump sum at a low interest rate, which you can invest immediately. Because the term is quite short (1 to 3 years) the repayments are quite high though.
Really appreciate the enlightenment! need to read more about unit trust, not familiar with that products
I have invested in Unit Trusts, but I would stay away. Stick to ETFs.
In fact I invested in this one:
https://geoexpat.com/forum/155/thread345175.html
I'm waiting a week or so and then will redeem it and put all the money in ETFs.
Last edited by pin; 18-09-2017 at 06:08 PM.
Where do you buy your local stocks? Banks or broker? which one and why?
hehehe.. learn something new everyday