Hartawan Berkongsi Rahsia Mereka - Michael Tan

Michael Tan has been involved in property investment for approximately four years, with wealth accumulation of more than RM2.28 million. Through his mortgage broking firm, he has taught more than 220 students within 8 months and has helped them purchase properties worth more than RM8.07million.

He also advised all to find out how much one can borrow, to find out how much one is worth. “If you currently have rentals, then your income (level) goes up. For example, if your monthly pay is RM10,000 and rental income is RM2,000, the amount that the bank will calculate is based on RM12,000. Therefore the (borrowing) limit goes up,” Tan explains.


Property Advisor, Michael Tan
Michael Tan
Tan also provided a few formulas. One included determining one’s Finish Line, which translates to determining how much you need to have in order to retire within your limits. Not surprising, all 150 participants’ figure ran up to the millions.

“Last time, to be a millionaire is a privilege. Now, it is becoming a necessity due to money inflation,” he explains.

Tan’s formula – calculate your required Pension Fund
Pension Fund (PF) is the amount you need when you arrive at your desired retirement age, in order to receive your Desired Monthly Income (passive income).
property millionaire

DI (Desired Income)  =  Ideal passive income monthly

CA (Current Age)  =  Current age, rounded down to closest 5 years (e.g. 48 becomes 45)

RA (Retirement Age)  =  Ideal retirement age, rounded up to 5 years (e.g. 48 becomes 50)

POA (Passing On Age)  =  Age of passing, rounded up to 5 years (e.g. 81 becomes 85)


PF  =  DI  x  (POA-RA)  x  12 months
For example:
PF = RM10,000 x (75 – 45) x 12 months
= RM3,600,00

Which means, I would need to have RM3,600,000 in savings, so that I can retire by 45 years old and enjoy a passive income of RM10,000 per month (assuming that I pass on at age 75)!


(sumber: StarProperty.com)

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