Sharing my vision of retirement and gem of knowledge

Hi all,

I am a soon to be ex singaporean that managed to get out of Singapore in 06. I am located in Edmonton, Canada. In the 1st couple of years, life has been a roller coaster.

When i first landed, the Edmonton Real Estate is booming so it does not takes a genius to make $$$. Here i was, instead of starting out by renting like everybody else - i went ahead to buy my 1st property(4 bedrooms a garden and attached garage) as wifey found a good job within 4 days of landing. In 6 months, the property appreciated by C$150K. By now I also work so that i can use my job to leverage and rolled what i earn into a even bigger house (4 bedrooms upper level, 1 study room, kitchen and living room with a fire place on the Main floor 1 movie threatre, 1 game room and a guest bed room - in the basement), as the property was still going up - i know that it would just a matter of time that it starts to go downhill. So I refinance the property at almost the peak and took the equity to rolled into rental houses and businesses. In a matter of a year and a half, i do not have to work anymore. My income from the rental houses and vending business covers my monthly expenses and starts to develop my most lucrative business - recruitment of filipino overseas worker to work in Edmonton.

As a gratitude to the old forum which i have gain lots of insight that has help me to make the correct decision, i have been helping fellow samster who had attain their CA PR to a "soft landing" (Apply for landing documents - SIN Card, Alberta Health Card, Child Tax Benefit, Driver License, rent a house for them and etc).

As the recruitment business grows. I reckon that i can reached my goal of C$1million in net asset before collecting my Canadian Citizenship and C$5million in 5 years when i can finally retired as my eldest 2 kids would have reached 19 and 18 years of age (out of the hands of NS).

So this is how my vision looks like, i will spend 6 months in Canada (late Spring till earlier Fall) and for the Winter months, i would like to spend a couple of months in Malaysia in my own executive apartment and a couple of months in my own properties CEBU in the Philippines. The rest of the time will be spend travelling to visit more Asia Pacific (especially China). When i have finished enjoy visiting most of the natural wonders. I will start with places like CUBA, Central America or South America. Not too keen on USA, use to work with them did not enjoy their loud, arrogant attitude towards others.

When we are too old to do that anymore, we would check myself into a retirement village for our last days. In the process, i will make sure that my 4 kids learn the life skills (Responsibility, Empathy and financial Management). If they are sucessful in their own than what we have made would go to the charity.

The purpose of sharing it with you is to inspired you rather than to put you down (like what PAP) like to do all the time. Before striking the gold mine here, i test run by working overseas in places, like Thailand, Philippines, Brunei and travel around asia pacific on business trips. From this - i learn things that are not thought in any books like being adaptable, creative, empathy and sometimes bridging the gap by see the situation from the other person perspective and unlearn the biasness that we grew up in.

The following are some of the Gems that i learn

Advise or Advice (pardon me)
When you received it from some body, listen but at the back of your mind - look for what's behind the veil. How do we do this? We qualify the person giving it. For instance, In the philippines, prior to living the country to work, the govt agency makes everyone goes through a cultural orientation course. The person conducting the course most likely have not even seen or step onto Canada. So the key words "Qualification" is the most important.

Life

In singapore, in my case - my peers, brothers, relative and friends seems to think that life is "Static" they do not realize that it is "dynamic". For instance, as a single the needs are different than a married person. Even when you are married, the different stages you have different needs.
Do think that, just by going to work and at certain point of time you move to a higher paying job. This should take care of everything the answer is obviously "NO" unless you are in the PAP Cabinet or MP? The key behind it is to have a "Vision" or mindsight of what you want to achieve. It is only when you have this Vision then who can focus your energy to achieve what is in your "Mindset".

I hope some of the Samster who have more experiences and knowledge can also share their gems of knowledge so I can learn more and improve our selves.

Next Week - i will be posting on Life on the other side of the fences. Stay tune

Thank you very much for sharing such wonderful insight and experience. I am sure the bros here will learn much from you. :-)

Asychee said:

I hope some of the Samster who have more experiences and knowledge can also share their gems of knowledge so I can learn more and improve our selves.

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sometimes you don't have to have a million bucks to be happy.....

it's a big world out there, even when you are in a developing country, you can be happy if you have contentment in your life.

many of the non-financial things can also make you happy.....if you thank God for the blessings that have been showered upon you.

singaporeans who pursue monetary items while living overseas haven't really left spore yet....they are merely just creating an extension of spore to another location.

Congrats bro. Good to see that you're doing so well in your adopted country. It takes a lot of guts to uproot yourself from the dot. The tough and daring ones are those who make it. Those Sinkees who are afraid of even the smallest discouragements from some of the PAP hired clowns are destined to be doomed in this dot.

Hi Tee kee,

I agreed that you dont need a million bucks to be happy but having a million dollars at your disposal makes a lot of problem go away.

I sorry that you felt that i am advocating that $$ is a way of life and painted a picture that being rich is defined as sucess. My main intention is to let fellow samster see that from young we have been hardwired that education is the key to sucess. I am paying it forward by helping the trapped samster to be successful here so that 1 day. They can pay it forward by helping others to be sucessful in their own adopted land.

Personally, i dont give a swat about the 1 million or 5 million. Even if i am poor again and in another country. I believe, i will still rise from the ashes to become a pheonix again. You can earn the $$ back but it is the time lost that you cant gain back. If you are making the descision, focus on what your mindsight is. You will reached it very much sooner or in fact sometimes better. This is a platform for me to share my experiences.

My mindsight before coming to Canada was to have my own house on my own land. Have my own kids (not encumbered by what NS dictate them to do). Have my own time to bring them up to be good men in the society and at the same time allows them to achieve their potential in life by spending as much time developing them.

I ask myself, if i continue the working route, i will be better off in singapore. That is why i planned my move carefully from the time tat submit our PR paper until the time that we moves. My reaction to captured the opportunity is much faster as i have already consider all the different option and consequences.

Another Gem for fellow samster: Not Planning = Planning to Fail, I always ask myself what is my Plan B. and
I m just trying to clear up the misconception that people have on the other side of the fence.

For give me for my poor English : "O" level nia

Thanks for sharing your experiences here.
Really appreciate it.
Will learning from whoever willing to share.
I'm in the mist of planning & executing my route out of this communist country.

Brrrrrrrrrrrrr!

market crashed and now my dream is gone

what a cruel world.

aiyah think so much abt migration for wat, cannot even make enough to eat think abt go to ang moh land..chey

Congrats Bro.

Your sharing and willingness to help others will be richly rewarded one day. Hope to join you in Canada soon.

Cheers

Re: Sharing my vision of retirement and gem of knowledge - Part II

I would like to touch on the most important concern for all immigrant ie the roof over your head when you come to Edmonton. I will walk you thru the thoughts process so tat u can come a decision whichever suit your Mindsight.

The usually logic when they arrived would be to rent 1st. Watch the market then buy their own house if they can afford it.

When i m in singapore, whenever I am free(hobby) i challenged this paradigm (not sure the spelling). We last talk about life is dynamic we have to go with the flow.

let start with your own SWOT Analysis (no offended really dont know how to spell)

Ask yourself the following question - dont just accept what i have to say

1. What is your the amount of Cash you are bring to Canada. Believe me Canadian Govt will make you bring.
2. Will the cash be best deployed sitting in a bank (or out working hard for you.)
3. What is the trend of the market for both the rental and home ownership.

If Purchase a home what should i look at?

Please refer to the Edmonton Real Estate Blog for the analysis under the chart that shows the Sales and Listing Ratio on September 30, 2008.

If Rent a home what should i look at?

Please refer to the Canadian Mortgage and Housing Corp (CMHC) website. You will be able to find out the rental is on the uptrend or on the down trend.

Analysis

Buying own a house

In this Case, you will noticed that the housing market has shifted like a pendulum from a buyers market past the balanced market into the starting of the seller market.

Renting a house

In this case, the rental trend is going upwards with inflation - it is always an indicated that it is going to cost more down the road.

The next logical sequence would be to compared how much it would cost to buy a house vs renting a house.

Let's take a real life analysis - This is (something unqiue here in alberta) what we call "assumable property" ie. you pay the owner some $$, and takes over the house (MLS #: E3155757).
In this case, it cost $9900 before bargaining. it you can get away if more discount the merrier.

Buying Cost (for calculation)

Buying Cost - $9900
Monthly Mortgage - $755 *12 = $9060

annually = $18960 + Property Tax $600 = $19560

Rental Cost

Monthly Rental = $1100

Deposit = $ 2200 (1 month advance + 1 month deposit)
Rent = $13,200 annually
Total = $15400

If monthly Rental = $1200

deposit = $2400
Rent = $14400
Total = $16800

The cost differential (19560 - 16800 = $2760.00 or $230 nia) is actually not too much. But the benefit is very different.

buying a house

The mortgage will be going down every month and the equity will be built up. When (not if) the market starts to go up. You can refinance and rent out your old house and buy a new one. This way, an asset would have been built up slowly. Historically Real Estate for the past 50 years Average 6% upwards. Please bear in mind average means (eg, water boil at 100 degree and freeze at 0 degree so the average will be 50 degree) - you guys with all the degrees that comes out of the ying and yang will understand better than me. Recent Nyar69 told me about Wave 5, i still catch no ball.

Rent a house

The $$ that you spend on the rental has only benefitted the landlord. $$ that you bring along is going down and when you really want to buy a house. You need to try and save the $$ and how long do you need to save the deposit. Opportunity like this type assumable will not present itself often -only in buyers market and balance martket you see them. In times of seller's market, it would have be taken up mostly by the realtor before it reaches the market.

This is how i managed to leverage myself. Before, i arrived i email to lots of realtor, those that responds i ask them to find for me a assumable. When i landed, i was shown one (divorce case) I put a down payment for $30,000 and take over the mortgage give him 3 months to move out. When back to singapore, shop for all the furniture + my own furniture, ship it to canada. 6 months later the house price goes from $300,000 to $450,000. I sold the house and brought a bigger house with the bells and whistle (read my last post for description), when it reaches the close to the peak(how i know -look at the chart). I refinanced the equity of the house as a line of credit and put my $200K into rental houses that i used to house the foreign worker (buy by the yard sell by the foot). If i rent to a local canadian family the property might not cashflow but if i rent it out to foreign work by the rooms, even in the worse cash, all the expenses are still covered i m happy liao when the market pick up again i can slowly let go of the property one at a time. That is how i managed to bring my net worth to be C$750,000 within 2.5 years with a investment starting from $30K.

It wasnt too difficult if you look and know that life dynamic and if you dont challenge this assumption, you make never know (like they say, the devil is in the details). If i did not challenge this, my life would have been very different. I would not have been able to benefit from the trend. The reason i work is to have 2 objective: leverage ourselves(dual income - can qualify for bigger loan mah) and understand the local working culture

A lot of people ask me if i took advantage of the stock market. ie to short the market or do what whatever. I told them a flat no because, i am not smart and i do not have the bandwidth (i dont even know till now wat in the is Wave 5).

Cheers. I'm also starting out again in Australia. Hopefully once I graduate from uni here, I can get a job here and get PR after that, sooner rather than later.

I love your advice; taking advice from an experienced person who have done it is very very important.

Actually I have a/some question/s to ask TS.

Which is what makes you choose Canada over other destinations?

Which are the other countries that you have explored before committing to Canada?

Have you ever considered migrating to S.E.A countries such as Phillipines, Thailand, Malaysia, Vietnam even though it was said that these countries have a lower standard of living and definitely not in rat race

I have some friends who migrated to Canada. I asked them is that the best choice, they told me basically they have travelled to S.E.A and other Asia countries, Canada is still their preferred destination.

Thanks in advance as its always interesting to hear from a 3rd point of view. :p

silverfox@ said:

Actually I have a/some question/s to ask TS.

Which is what makes you choose Canada over other destinations?

Which are the other countries that you have explored before committing to Canada?

Have you ever considered migrating to S.E.A countries such as Phillipines, Thailand, Malaysia, Vietnam even though it was said that these countries have a lower standard of living and definitely not in rat race

I have some friends who migrated to Canada. I asked them is that the best choice, they told me basically they have travelled to S.E.A and other Asia countries, Canada is still their preferred destination.

Thanks in advance as its always interesting to hear from a 3rd point of view. :p

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Migration is not for everybody. I would suggest you look at your SWOT and your family SWOT for current and for a future time line (Eg 5 years or 10 years maybe when your retired). Just like Canada might be suitable for me, it might not be for you.

Canada was my pick over the other countries tat i research (SWOT - Can go to OZ, NZ, US, UK, Ireland, Spain). Visited OZ (didn't feel right) & NZ (too slow), did not think i like my kids to grow up there. US (work with them - didn't like them very much & medical issue), UK (every body try to get out), Ireland - top contender, Spain - 3rd world).

Y Canada, Y Edmonton - Canada is not a perfect country - when i look SWOT for myself.

Financial
When we landed, with my 4 kids - Child Tax Benefit was extended was C1200.00 every month from May 06 until Aug 08. Education was $300/ kids per year. Unlimited Medical Consultation was C$88 for family - Alberta Health. (Jan 09 onwards Free).
Economy
Oilsands will be booming for the next 20-30 years, this is a fact. There are C$180 BILLION already invested in Fort Mcmurry (5 hours away from Edmonton). All things needed comes via here. You do the Maths how will the economy look like (sprinkle effect for the other sectors of the economy). When driving down the street, the Help Wanted sign are everywhere. Sometimes, i wonder why the SG govt. did not see this bright spark coming up - maybe i m the frog in the well, i have not seen any SG company taking advantage of this.
Real Estate
Remember the times in the 70's the HDB flat goes like $7,000 (put it in affordability factors - rental or mortgage payment = ? % of your montly salary). When the economy boom, everyone gains but who gain the most with the least risk (Real Estate Investor). Those that leverage on real estate. Fast forward to now, what is the affordability factors - me thinks that without dual income a lot of family sink oredi.
Education
The factory process of edcation is not suitable for the world of the future. Even the SG govt knows this, that is why they are advocating to learn less you will end up learning more. The cramping of knowledge in sg schools just does not work anymore. CA education is more on teaching you the knowledge, teaching you how to learn this knowledge and how to learn use this knowledge even grade 1 and 2 get simple project. It might not be the best but i believe this is the best direction to take. In the process, it teaches them about lifeskills (be responsible, be respectful, be fun to be & others) Of course on the flip side, i teach my kids how to manage $$ and combat the social attitudes that i deem unsuitable to them.

Y not SEA countries - I have worked in Thailand, Philippines and Brunei - I think they are good only if you are thinking of retiring. At this phase of my life, I am doing research in it. My kids have both the Singapore, Philippines and soon to be Canadian Passport. It will gives them choices on where they wanna be at different phase of their life. I m actually rather attracted to Malaysia MMSH program. But in my case, retiring in ASIA is not a problem as i have a Philippines PR thru my wife.

Edmonton's kinda boring...was there for an engineering conference Oct/Nov last year, seems like nothing much to do, though the economy's certainly booming. Already first snow in October, freaking unbelievable.

Starting chemical engineer's pay is around Can$90k/yr (might be even more now), but the housing rental prices already takes a huge chunk off that.

Cheers,
Trout

To be or Not to be (Working or Running your own business)

This would always be the 2nd foremost question for everybody that is getting out of singapore. When we Landed in Canada, My wifey managed to find a job within 4 days.

The employer was really nice - even wait for her to go back to singapore to resign and settle all the necessary things then come back and start work 3 months later.

When we were thinking thru the process. We realized tat the best situation is to have 1 spouse working and other running a business. That way, the whole family can enjoy the working spouse Company Benefit (ie medicine, dental, chiropactor, massage- not the happy ending type etc).

Prior to doing our Landing - Wifey is an Senior Optometrist in a Major Hospital in Singapore. We were aware that She will not be able to work immediately as an Optometrist here unless she went to Study in U of Waterloo for a couple of years. We evaluate the Opportunity Cost - Optom earnings around $200K / year take out the income tax + fee + professional insurance = net $100K. But working as a surgical tech = $50K starting and sometimes addition O/T here and there - last year income tax oredi $75000 -so my take is not worth it.

Since, the hot trend in the eye business = everybody wants to have lasik good eye sight and will be increasing. We focus on looking for jobs in terms of priority - Lasik, Optical shop and Lens Cutting or supplying company. So we surf the Internet Yellow Pages - take out the section on all the lasik clinic, optical shop and lens cutting company and divide all the input and reclassify different section and make a timeline and start going at it one at a time. Some clinic is in Edmonton but the hiring dept is in Toronto or some just place ads with assocation - so we look at that. Prior to landing - manage to make 3 appt 1st in the Optical, 2nd in the Lasik and 3rd i think it is a optical shop too. Any way, after Landing - 3rd day went for interview in Optical shop was taking but they needs a 2nd interview for the Boss. 4th day, went for the lasik Clinic was offer a job immediately. Since we knows tat, it is in the Lasik that we will have the best bet. She accept the job immediately and we did not even go for the 3rd company for interview.

As for myself, we were aware that the kids will have issues like settling (schools, getting family doctors), getting a driver's license myself and just to kick start the whole process i took 3 months. Meantime, I did my research and found that of all my skillls, the Refuelling of aircraft will get me the best salary possible at that point of time. So i went ahead and found a job in 1 week after i started.

As my mindsight is to have wifey working and me in own business, i look around and notice that Canadian has a snacking habit, so i went to a franchise expo got a vending machine business (Kiasi - higher chances of sucess) + research. So as i was working, i have the next stage of my plan in place. 3 months into the job - i sold my house (all think i am crazy), change to a higher paying job in a warehouse. Brought a even higher value house (current) renovate the basement to add in Movie room, Sauna, Guest Room and Toilet and a Game room (research by going to the show home).

At tis point, wifey income + my income + projected return from vending company is already $200K per year with a healthy pile of Cash. If the bank reject any loan, i could go to others. I got the money for my Vending Machine business - i planned my departure from working. I Calc all the expense, i had + how the vending machine is performing. Basically, as long as the Income is greater than Expenses = i can quit my job. When it reaches that point, i monitor it for a couple of months still looks good. I left behind the working world.

Once, i got into the house, after all the dust from the renovation has settled, I had the house re- appraisal, I applied for a line of credit secured by My equity in it. I was given a $200K line of credit.

By this time, I had familiarize myself with the in / out of bringing filipino worker here (i joint venture with someone - to start a recruitment business, this person has too much fear did not last). At that time market has peaked and it will be going down soon. So we got some houses on a rent to own contract. That is we put big deposit (15K) and 6-12 months later, we will close on the house at the valuation at that time. The monthly rental - a portion goes to the buildup of the deposit. At tat point of time, the cashflow is already positive. When the market goes down, it makes it cashflow even more. with 2 other rental house under my belt.

Please dont take this the wrong way, i hope that in my experience. You could find the path that makes you successful too.

As for the Gem of knowledge - Look at the fundamental, dont believe in the hype tat the sky is falling. It will makes you make better decisions.

Asychee said:

Y not SEA countries - I have worked in Thailand, Philippines and Brunei - I think they are good only if you are thinking of retiring. At this phase of my life, I am doing research in it. My kids have both the Singapore, Philippines and soon to be Canadian Passport. It will gives them choices on where they wanna be at different phase of their life. I m actually rather attracted to Malaysia MMSH program. But in my case, retiring in ASIA is not a problem as i have a Philippines PR thru my wife.

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I have to commend on the part where I bold it.
Why I want to mention this is because I realised many people migrate because they make a decision for their family without knowing choices are actually limited by that decision.

They say I migrate, I do this, I do that, its for my children's good, my family's good. The intention is there, but doesn't mean it is a right way.
Who is making the choice, they themselves or their children? At that phase, they are retiring, but the children still have a long way to retirement.

That is why I like the part where you said it gives them choices on where they want to be at different phase of life.

Asychee said:

Real Estate
Remember the times in the 70's the HDB flat goes like $7,000 (put it in affordability factors - rental or mortgage payment = ? % of your montly salary). When the economy boom, everyone gains but who gain the most with the least risk (Real Estate Investor). Those that leverage on real estate. Fast forward to now, what is the affordability factors - me thinks that without dual income a lot of family sink oredi.

Click to expand...

Real estate investment differs in each and every country. Because I ever did my research on properties in different countries. The part on leveraging income by re-financing when the market is at its peak. Yes, its a basic strategy for most real estate investors. This basic strategy will and should not go wrong for most property investors.

To be or Not to be (Working or Running your own business) - Part II

Taxation Issue

As most of you would have read from Rich Dad Poor Dad. I just wanna to put it into the Canadian Context. Here you cannot deduct your interest portion of the mortgage that you taken (unless u use the smith manever - sori don't know how to spell). There is no Trade up like the 1031 exchange in US. Lucky - if not in deeper shit than US.

When you work for somebody, taxes are taken away before you have a chance to smell your $$ in the paycheck. The only time that you can be reunited with them are when you do your taxes is the next year in the form of tax refund. Can you imagine, the $$ you overpay - sitting in the Govt coffer for up to 1 year. Every year, comes budget time you pray very hard that they will give tax credit, tax rebate & etc. before you see a alittle more of it. To make a long story short, you are spending after tax $$ - you cant write off very much either especially house hold expenses.

As for running a business, you add taxes everytime your charge the people for the service you provided. U only pay to the govt quarterly - can use your creativity. U can write off most of the expenses of a Car (if you do it a certain way). U can write off the interest tat you spent in financing the business. U can decrease the household expenses. You can write off the part of the house payment - be it the rent or the mortgage). It is just too many to describe.

In my case, i am not very smart. i take the 2nd option as soon as i can.

There are a lot of immigrant that comes - takes the business route immediately. They are way smarter than me.
This is how they did it, when they arrived, they find out who is the realtor that specialized in buying and selling of business. They approach him, he provide a list of business - give contact thru his banker friend to finance the business.

For instance, a business cost $50,000. Banks normally wants you to put 10% of your own $$ ($5000 + admin cost $800). They will finance the rest - they will also makes you buy govt insurance. In the worse case, you dont make it (if you can show reasonable effort). You might not have to pay for it . That is how i managed to get my financing - for those of you that is wondering why i do not want to spend my own $$ sitting in the bank. You have to think out of the box - If i use my own cash, i cannot deduct the interest that i forgo. When i finance, most of the things i can deduct. It is just stretching your mind and comfort zone. Do not let the fear of failure put you down.

If you want to sell away this ongoing business, just go back to the realtor and off load. When you work for some body, when they hand you a pink slip, you only source of income is gone. Here at least there is Employment Insurance to takan for 9 months for max $1500/month (depending of past income)

Gem of knowledge: Qualify the person giving you the advice, have they done it before. Most time, i listern but will draw my own conclusion at times even when the person is qualify but they are still not aware of your SWOT. When i arrived ALL, i mean ALL were telling me. rent a place, work for 6 months then look for a place to buy if i can afford it. If i follow, i would have had the same results - some 7 years here still renting a aprt.

If I owe the bank tens of thousand of $$, it is my problem if i owe them MIllion or Billion, it is their problem. Get it - use debts to leverage and work to your advantage.

i like western alberta for its scenic beauty. eastern alberta is too flat and too rural outside the twin cities of calgary and edmonton. if i wish to retire, i don't mind canmore or banff, as there is always tourist business to keep one busy. a short 1 hour drive from the airport in calgary is all there is... easy and convenient. getting to the mountains and resorts from edmonton is a little more difficult and longer. and who cares about just driving to jasper for a weekend. if you've been to jasper once, you've seen enough. there are more fun and places to enjoy in the banff area. i would get out of alberta in october and return in april, if i'm not skiing there. otherwise, the winter is brutal, long, cold and lonely. godforsaken place when the winter solstice kicks in.