Possible to earn money like this?

Glen999 SG

Just a thought:

My friend has a car. no more loan.

Can he refinance my car to get extra $$$ and then put this money in foreign currency to higher interest (6% for NZ dollars) which is higher than the current car internret (+/- 2%)....

then I can use the earned interest to pay my car maintenance..

will it work?

Qitai SG

2.2% is flat rate. You need to compare to effective rate, not flat.

Currency investment involves risk (I.e, AUD and NZD can devaluate against SGD). Are you willing to take that risk?

devmeister SG

you’d be better off trading forex. pretty similar.

Glen999 SG

let say, 100,000,, can earn 2,000-3,000 per year leh... (ROE infinite coz you don't use your own money)

NZD against SGD may up or may down.. this is the risk lor...

but what if I have my son to go to NZ university anyway two years later.. might as well buy it..

Qitai SG

If you have son going to NZ or AU to study, then you should invest anyway. So, what is left is for you to calculate the effective Interest rate and compare that to the NZ, AU interest rate.

But you say pay car maintenance earlier.