YouTube Understanding of Real Estate to boost wealth

Let me share learning of new skills in the knowledge Economy in year 2023. In today 2023, it has been easier than ever with platforms like Youtube where you can learn and pick up skills. I've been following YouTube content creators and gain alot of insights + habits from their channel. Ever since the pandemic in year 2020 in Singapore, i've been so engrossed in how to reach F.I.R.E and what are the ways to achieve. 

Real ESTATE

From there i've learn about Real Estate that you can put certain a fraction of the house price down and rent the house out to a tenant and build up your equity over time. With a fixed mortage of 30 years, you get a bang out of the fixed interest rate back then as interest rates were low. As long as you can rent it out, and you are getting positive cash flow. What do i mean by positive cash flow.


Example : 

House price for 2 bedder in Singapore in year 2020 : SGD $650k

Downpayment :  SGD $130k

Interest Rate (2020) : 1.5% for 30 years for $520k

Monthly payment : $1794.63 round off to $1800

if you can rent it out at $2.5k per month. Assuming 10 months as you may need to advertise for rentee after 1 year lease. (Note : Singapore minimum is 1 year lease. Airbnb is not allowed for duration less than 1 year)

Cash flow per year : $25k - $21.6k = $3.4k (Worse case is to rent out at $2.25k whereby cash flow per year is zero) Your gain will be equity in your asset. As your tenant is building up your equity for you. 

Per year equity build up is roughly $14k. Assuming you got cash flow of $3.4k + equity of $14k. You can get $17.4k returns in 1 year. Rate of return is rounded up to 13.4%

Fast forward to 2023, depending on locations, renter has gone up to $3.4k - $7.2k. What cause the rent to go up? A couple of reasons, Covid19 infection has more or less stabilize in the world. People are longing to travel as back then in 2020 - 2022, there were shut downs in factories, people stayed at home and countries restrict people to travel. Many jobs were cut. Right now, internationally except for the Ukraine and Russia war, all the other countries have opened up and international travel and business has resume. Economy has gotten better except for inflation. 

If based on current average rent rates of $5k per month. Using 10 months out of 12 months as reference. Cash flow per year : $50k - $21.6k = $28.4k. Assuming cash flow of $28.4k + equity of $14k. You can get $42.4k returns for year of 2023. Rate of return is rounded up to 32.7%.

2020 rate of return : 13.4%

2021 rate of return : 13.4%

2022 rate of return : 13.4%

2023 rate of return : 32.7%

2024 rate of return : 32.7% (assuming all else same for 2023 pending any black swan event)

In a matter of less than 5 years, you will get $130k investment back in cash flow + equity. And the asset you own is worth $0.8m - $1.2m based on location. 


Calculating the net gain in asset in equity : 

Price of house : $1,000k - loan of house  Remaining $450k = $550k

Total Gain with cash flow - initial investiment

$550k + $67k - $130k = $487k 

Total percentage gain over less than 5 years : 377 % rounded up. 


Of course this is base on today 2023 and the opportunity taken back in year 2020. The reverse also hold through if you cannot get renter and also the equity you build up over the years may drop significantly if housing suffer a slump or a crash. All investments will carry risk. Need to understand and cover your down side. 

So how do people cover the down side, drop rent is one of the way. From $2.5k drop to $2k per month. Cash flow becomes -$1.6k which can be easily covered if you are working. Once housing recovers, you can increase your rents back. Get more people to rent, if there are 5 people to rent for the 2 room condo, you can still get the $2.5k per month. Potentially i see there is more advantage than disadvantage using Real Estate to build up wealth. Even forbes showed most of the top billionaires built up their wealth through Real Estate.






MY LIFE TILL 16 YEARS OLD IN SINGAPORE

My life till 16 years old in Singapore


My parents were married through arranged marriage whereby my dad went out with my mum 3 times and they got married. My dad was a hawker and till this day he is still a hawker selling clothes. He shared with me that back then the Government wanted to give the hawkers a place to ply their trade instead of plying the trade on the roads. His store is located at Albert Hawker center. Till today he is still selling his clothes as he wanted to keep himself busy even though he is going to reach 80. I admire my dad for his preserverence in doing the same job for the past 65+ years. How many people can say that they have been doing the same thing over and over again for 50+ years. My mum was working as a carpark attendant and retire when she was 57 years old. She was also working for Capital Mall for 40 + years before she retire. Although both my dad and my mum only have primary school education and does not understand English. Both of them work hard and togther they got a 3 room flat. 


(From 0 to 7 years old) Kindergarten (Infrant)

I was born during the 1970s and back then life in Singapore is not really as advance as in 2023. My family stayed in a 1 room rental flat back then. I have no recollection of my 0-4 years only. I only remembered that mi and my brother (difference of 1 year+) were put in a house in Toa Payoh whereby we stay with our Nanny and schooled in Kindergarten in Toa Payoh. I cannot remember where is the kindergarten now. It may have been abolished as per so many schools in Singapore due to low birth rates. I've been close to my nanny but unfortunately she passed away when i was 8 years old. I was able to see her for the last time before she passed away. She requested to see mi and my brother before she passed away. I still remember as it was yesterday when she passed away. I believe these memories will never go away as it was an important event in my life. 


(7 years to 12 years old) Primary School (Children)

I recall with fond memories where i study in Stamford Primary School. That was the place that i study and make a lot of friends. Some of them i still keep in contact till today. Total 6 years in primary school. I learn drama, singing, art classes and i was a flag raiser whereby every day i will raise the flag when i was primary 6. Not sure why i was picked as i was also a naughty boy whereby i will disturb other people in class. My academic results were average and i was able to score 232 to go to express during PSLE (Primary School Leaving Exams) I was also helping out with my dad in his shop whereby everyday i will deliver lunch to my dad. My grandmother can cook delicious food where i always recall i would like to join her to go to the market in the morning at Albert center to buy fish, chicken, vegetables. Back then in the 1980s there were alot of wet markets whereby you can see live chickens and fish. There were a lot of negotiations to and fo and i enjoy listening to my grandmother bater with the hawkers for better deals. She will examine the fish carefully and will check whether it can feed the whole family. I still remember my dad will pass her $10 every day to buy the food for the whole family where she will cook the food for lunch and dinner. My mum after work will take over my dad at the store and my dad will come home and have dinner with mi and my brother. We were living in a 3 room flat when i was 7 years old. My dad shared that initially HDB offered him China Town but he decline as his shop was at Bugis and with a 3 room flat in Queen Street is more convienent. In the end, my dad was able to get the 3 room flat in Queen Street. During my childhood, my dad bought me a bicycle and a roller skate which i taught my self how to skate and ride and took me to library and make a library card. Back then i can only borrow 4 books unlike now we can borrow up to 24 books for 3 weeks. I will always visit the national library every Sun. I love the library and the books. Mainly there is air condition and there were a lot of interesting books in the children section, like Hardy boys, Nancy drew, Ronald Dahl. The stories were captivating and i can keep on reading. Besides it is free. The library become a source of resource for me back then. 


(13 years to 16 years old) Secondary School (Teenager) 

I selected Kim Seng Technical School as my choice not knowing how far it was to my house. Back then i thought the postal code is near 183xxx for Bugis, i thought it is nearby. Lucky it was not too far but every morning need to take the bus 32 and it took about 35 minutes to school. I tried to wake up early and go to school but sometimes when you miss the bus and you will need to wait for the next bus. That is where i will be late for school. When i was in secondary 3, the school will give way for other construction and we were combined with Delta Secondary when i was in secondary 4. I will always remember Ms Rosie Lim, my form teacher for Secondary 1 and 2. She taught my class English and she did not give up on us and was always patient with us. Till today i'm always grateful for her. I was made a treasurer and will collect the money for the class. The secondary school life goes by more faster than i thought it will be. There was also a boy name Xiang Zhong and a girl name Suyanti. They are both from Indonesia and they studied in Singapore. Hope that they are all doing well as i lose contact with them. Nowadays the gathering i had with my secondary school friends are a handful. Most of them have their own families and they are busy with day to day. Hopefully i can reconnect back with my friends so we can catch up on old times sake. 







MY JOURNEY TO CONTROL HYPERTENSION IN MY 40s

 

My Journey to control Hypertension


My name is James. I was first diagnosed with hypertension on the 10-Aug-2022. It was through a rountine health check on the 5-Aug-2022. I was doing the 2 yearly check at Raffless hospital whereby the check up cost $300 but as a ST Engineering executive, i only need to pay $36 for the whole body checkup which include blood test, urine, stool, x-ray, ultrasound. I was a bit shock that my blood pressure was at 150/100 as i thought i have the blood pressure in control since i was excercising in year 2022 whereby i want to keep fit due to Covid19.


Upon the doctor’s advice for the blood pressure, i monitor for the subsequent days from 6-Aug-2022 till 10-Aug-2022, the blood pressure readings varies from 139/105 till 170/120 and also i was not having good night sleep whereby i need to take a leak a few times during the middle of the night. From there i did some research and my high blood pressure could be due to sleep apnea problem that i have. With this in mind, i look for my company doctor on the 10-Aug-2022 morning to have the diagnoses. The blood pressure that he measure for me is at 170/100 where he insisted that i take medication to bring the hypertension down first as he writes a letter of recommendation for myself to go Ng Teng Fong’s hospital for the ENT specialist check. I was prescribe 30 tablets of

amlodipine of which to consume 1 tablet per day. After the first day i consume the tablet, my blood pressure drop to 154/110. On the 11-Aug, my blood pressure drop to 142/105. On the 12-Aug, my blood pressure drop to 133/95. On the 13-Aug, my blood pressure drop to 125/85 almost to normal.

Doctor also tell me to take complex carbohydrates then process carbohydrates. This combine with excercise will control the hypertension. Doctor also share that eat fruits then juices as the raw form of fruits have a lot of fibre which is important. Banana is good for reducing blood pressure. Less salt / sodium so that the body does not retain more water and does not feel so thirsty. Examples of complex carbohydrates.


List of complex carbohydrates

Fruits include Apples, Bananas, Strawberries, Pears,

Legumes and Seeds include Chickpeas, Green Beans, Soy Beans

Vegetables include Brocoli, Carrots, Cucumbers, Onions, Potatoes, Spinach, Tomatoes,

Whole Grains include Brown Rice, Barley, Oats, Wheat


Complex Carb food to avoid as it has less fibre include bake foods, cakes, cookies, crackers, hamburger buns, pancakes, pizza, rice cake, sandwich bread, waffles, white rice, pasta


In between 10-Aug till 13-Aug, i read up on information with regards to Sleep Apnea. With regards to Sleep Apnea, it affects everyone who snore for extended period of time. For myself, i have been having snoring problem ever since i get to know it in the army but i can always wake up fully charge in the morning as i have 7-8 hours sleep but i do feel tired in the afternoon, it could be i did not have a good sleep as i have sleep Apnea.



Tongue Excercise

With the research i did, i was able to identify the excercise that i can on my tongue to train as a muscle. Stretching the tongue to touch the chin by opening up the mouth for 5 times and holding for 5 secs. Stretching the tongue to touch the nose by for 5 times and holding for 5 secs. Tilting back the head and stick out the tongue for 5 times and holding for 5 secs. Closing the mouth, rolling the tongue back and stetch to the front teet for 5 times and 5 secs. Closing the mouth, stretching the tongue to the left side of the chin and using a hand to push against it, like wise do it for the right side of the chin and using a hand to push against it. Do it for 5 times and hold for 5 secs. Lastly stretch the tongue by closing the mouth and pushing it against the lower teeth for 5 times and hold for 5 secs.


Breathing Excercise

Breathing in deeply and exhale and do it for 20 times. Massage the nose and face around the nose for 10 times. Doing a snort for 5 times. Base on medical experts, doing it everyday will yield results. So far from 10-Aug till 13-Aug, the frequency that i wake up indeed become lesser.



Sleeping Positions

Sleep on the side and also popped the pillow to where your neck and body can be fully supported. I will be trying that on the 13-Aug and hope that this will enable me to have deep sleep and better rest.


Day 5 : 14-Aug-2022

I have a good night sleep from 10pm to 2am and from 2am to 6:30pm. Total i got 8.5 hours sleep. I felt refreshed with 2 pillows rather than 1 pillow. I measure my blood pressure in the morning before i excercise. The blood pressure reading is measure at 137/92. After the excercise i measure my blood pressure, it is reading at 117/85. I will continue to sleep with 2 pillows. It is evening time at 6:11pm, i measure my blood pressure after excercise, it is reading at 117/86. Hope that i will have another good night sleep with 2 pillows



Day 10 : 19-Aug-2022

Visited Raffles Medical Hospital to get my health screener report. Everything looks good, i got no diabetics and no high cholestrol. Except for my blood pressure which i told the doctor i will be going to a specialist to check whether i have sleep apnea issues. I also showed her the high blood readings that i have dilliegently taking down. The blood pressure has been trending down since i took medication and my reading was at 110/78 when i took it on the 20-Aug. The doctor advice mi since the dosage of the high blood medicine i took was small, high probability that i will be off the medication but this has to been confirmed by the doctor. I thank her and it is great news to me. I will continue to excercise morning and relax in the evening except for sat and sun whereby to excercise in the morning and evening time.




Day 13 22-Aug-22

I went to pioneer polyclinic to visit the doctor and i was consulted by the care coordinator who told me to bring my blood pressure monitor next visit. Base on the readings i have taken for 13 days, although the blood pressure has went down and seems under control. The doctor will have the final say. After that i was consulted by the doctor who tell me that he cannot reduce the dosage yet. Although the blood pressure seems to be under control, the underlying issues is the sleep apnea which has to be resolve first. He asked about my appointment in NUH which i reply it is this Wednesday. I got another 4 months of medication to have my next appointment, for now is maintain 1 tablet per day. Doctor did share that if the next appointment shows significant drop, the doctor may consider to remove medication. I will look forward to that. For the time being i will continue to excercise morning for Mon and Friday and excercise morning / night for Sat/Sun. At the same time control my diet and do not drink any coffee till my next appointment in Dec. I have confidence that my blood pressure will be in control lessor than 130 / 80. I learned somthing new also as the medication that I’ve been prescribe, i cannot take any grapefruit or grapefruit juice as it will have side effects.


Day 19 28-Aug-22

I have changing my workout to a less intense workout to a 12 minutes per day workout for 7 days. I can see my blood pressure further dropping to 104/74 for the 2 days that i have doing the work out. Seems like my blood pressure is definitely under control. The key reason is also that after i see the specialist in NUH, the doctor diagnose that i could have some nose block issue whereby i am being prescribe steorid spray to open my nose. I was having a good solid 6+ hours sleep per day and i believe it helps to lower the blood pressure.


Day 89 7-Nov-22

I have changed my morning routine to excercise in the morning from every Tues / Thurs / Sat / Sun with a 2.4km jog coupled with a hands excercise for 3 sets. My blood pressure has further drop to 97 / 69 which i deem a further accomplishment. I have also shed some weight from 60kg to 58.5 kg. My target is to hit 55 – 56kg as my baseline.


Day 120 8-Dec-22

I have sucessfully reduced my medication to 1/2 a pill daily. The next review is 3 months time. I am still not out of the woods yet. I still need to continue to monitor my blood pressure and continue my excercise and diet. I’ve been excercising daily by jogging 2.5km every morning after i send my daughter to the school bus. As i excercise daily, i can find that my energy levels are much better and i don’t feel so lethargic.


Day 144 3-Jan-23

I have not been sleeping well when i was waking up 3-4 times in the middle of the night to go toilet at my in laws house. I was alarmed, i thought i am on the road of recovery. I thought that it could be that i am not used to sleeping at my in laws house in indonesia. So i decided when i come back to Singapore, i will monitor whether i have any sleep apnea issues. For the next 1 month, although my blood pressure remains under control, it did not reach less than 120 / 80 and i was having bad sleep for a lot of days. On 31st Jan 2023, i decided i need to engage the cpap machine to assist on my sleep. After i used it on the 31-Jan-2023 night, the next day i feel refreshed and energetic not really dragging myself to excercise, my head seems to think clearly and i have more energy than before. For the next 1 month+ till my doctor consult i used the cpap machine and believe me, it makes a difference, coupled with the excercise i do daily and the tongue excercise i did, my body has sufficient rest and my blood pressure has slowly reduced significantly from 120+/90+ to less than 120/80+.



Day 205 10-Mar-23

My doctor consultation day. Although my blood pressure hovers around 120/80+, the doctor is uncomfortable to remove the 1/2 a pill and wants me to continue to take 1/2 a pill day till another 3 months to monitor. The target from the doctor is to reduce it to less than 120/80 in order to remove it totally. Although i did not manage to remove, i am hearten as my blood pressure has indeed drop to lesss thatn 120 / 82-83. I’m very sure by continuing my daily regime of excercise and diet, i will be less than 120 / 80. I’m also picking up back basketball which used to be daily excercise when i was 13-19 years old, it was only during army then i did not really play again. It is always shiok to play basketball and pit my shooting skills, i need to work on my shooting skills. Increase my excercise doing cross fit as well.


11-Mar-23 to 5-Jun-23

I start to excercise daily jogging for 2.5km in the morning and doing 1.5km in the evening. I also start to sleep early at around 9+pm. I start to feel more energetic in the morning and also less tired during the day. I have been consistently build up the habit of jogging and for now i cannot imagine myself not jogging every day. On the 5th-Jun-23, showing the doctor on my blood pressure which has consistently maintain below 120 / 80. I was off the 1/2 pill. The next check up will be 1/2 year in later Nov to check on my blood for my whole body. I guess i have to keep on maintain my excercise regime. With the regime i started, there is no going back to the lifestyle i lead.

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