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CONTENTS
Let ter from the Editor Letter from the Editor
Departments 4
Market Report June-July 2016 REAL ESTATE MARKET UPDATE
8
10
Feature What You Should Know Before Getting a Home
12
Loan Part 1
September 2016 • Vol. 09 • No. 09
Real Estate Spotlight
P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
Adverse Interest - Whose Property is it Really?
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
14
Profile Mary Preston
[ Editor ] Arlene Taitague Taitingfong
[ Display Advertising ] 16
Tax Relief for Real Estate
John Mendiola Doris Pangelinan Emily Untalan
Investors Found in 1031
[ Traffic/Circulation ]
Tax-Deferred Exchange
Shaun Cruz
From the Experts
[ Production Manager ] 18
22
How to D.I.Y.
Mark S. Burke
Easiest Cupboard
[ Graphics & Layout ]
Pan Lid Organizer
Mark S. Burke Edwin E. Valencia
Curb Appeal The Difference Between an Investment Property and a Second Home
25
Who Ya Gonna Call?
27
Classifieds
28
Closing
[ Website Development ] Edwin E. Valencia
[ Editorial Contributors ] John Arroyo Siska Hutapea Amy Lofsgordon Jeremy Rojas Arlene Taitague Taitingfong Kim Anderson Young
Arlene Taitague Taitingfong
Hafa adai! We have great articles this month! Find out what is the difference between an investment property and a second home? Amy Lofsgordon breaks it down for us in CURB APPEAL. It may affect the type of loan you get. Speaking of loans, John Arroyo takes us step-by-step in the loan process. This month’s article in our FEATURE, is Part 1 of a two part series. This is definitely good information! We have a new contributor to our magazine- Jeremy Rojas. Check out his article about 1031 Tax-Deferred Exchange in FROM THE EXPERTS. If you are a real estate investor, you will want to read this! Mary Preston always wanted to be in the real estate industry. She recently fulfilled her dream and is a new REALTOR® with Ellen’s Realty. Find out more about her in our PROFILE this month. Siska Hatupea shares the latest statistics in MARKET REPORT and gives us an update on Guam’s most recent property transactions. The market has been busy! Kim Anderson Young explains what Adverse Interest is in REAL ESTATE SPOTLIGHT. Find out who really owns the property? GAR President, Deanna Palmer explains how to get your property sold and Peggy Illagas, CEO and Government Affairs Director of GAR, talks about safety issues! Until next month,
Cover Photo: Mark S. Burke CasaGuam is Published by:
Arlene Taitague Taitingfong
CasaGuam Advertising Disclaimer All Advertisers agree to hold the publisher harmless and indemnify it against any and all claims, losses, liabilities, damages, costs and expenses (including attorney’s fees) made against or incurred by the publisher, officers or employees with respect to, or arising out of, the content, text, graphics or representations of any ad published herein, including but not limited to the sole negligence and/or fault of the publisher. The publisher is not liable for any claims, losses or damages of any kind, arising from the wording, text, graphics or representations of any ad published herein, or the condition of the articles sold through the publication, or performance of services advertised in this publication. All advertising and/or performance of services advertising and/or submissions become wholly the property of CasaGuam Magazine. CasaGuam Magazine is a registered trademark of PTI Pacifica Inc. Copyright © 2008. All rights reserved. Reproduction in whole or in part in any form without the express written consent of the publisher is prohibited. We reserve the right to edit or refuse any ad and to reprint any photo for promotional use.
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Market Repor t
June - July 2016 REAL ESTATE MARKET UPDATE une 2016 was a busy real estate sales month. The $57.9 million sales volume in June includes the sale of a golf course in Yoùa, a one million dollar house lot along Paseo De Oro in Tamuning, land located in Yigo along Marine Corps Drive, six commercial/industrial buildings, two apartment complexes among others. Pretty busy month! Our company was involved in providing advisory services to buyers/sellers in majority of the commercial/industrial sales during this period. The Windward Hills Country Club was sold to Wonderful Resorts, LLC for $8.5 million in June 2016. The US Navy Pilot designed golf course was built in 1951, and is the Guam’s oldest golf course. The 168+ acres piece along Route 17/Cross Island Road may become next residential subdivision.
J
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July 2016 reflects a slower month at $27.2 million in sales volume. Three Talo Verde townhouses were sold in July at over $700,000 per unit to off island buyers. Total sales volume through July (first seven months of 2016) reflects $373.6 million, surpassing the annual sales volume from 2013-2015. On the residential sector, the median price for the first seven months of 2016 for single family dwellings is at $250,000 while the condominium median price is at $179,000. The substantial increase in the median price of single family dwelling reflects both an increase in prices and an increase quality of product. The increase in construction costs and the limited labor pool are expected to continue to strongly impact affordability of housing in Guam
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Market Repor t Cornerstone Valuation Guam’s Selected Summary Of Real Estate Activities Is Included On The Following Charts.
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Feature
What You Should Know Before Getting A Home Loan (Part 1 of a 2 part series)
By John Arroyo
Recently, I was talking to a friend who had just submitted a mortgage loan application to a local lender. Knowing that I had been a banker for many years, he asked if I could explain how the application review process works. After answering his questions, it occurred to me that there are probably many more going through the process, or thinking about it, who might find this information useful. I will help you understand the process, provide tools you can use to do your own analysis, and explain few things that you should know about residential mortgage loans. Getting a loan to buy a house is a major life decision, not only because of the huge monetary outlay, but also because it is a financial commitment that can last as long as thirty years. If you are contemplating it, make sure you understand what you are getting into. A lot can happen over the course of a mortgage loan. Taking the time to become educated and to plan and prepare will take much of the worry out of the equation. The first step, even before meeting a lender or a real estate professional, is to set a budget. This will help determine what you can afford and setup a frame work for saving for future needs. Creating a budget may seem daunting but it really isn’t. There are many resources on-line that can help you. Make sure you include provisions for property taxes, homeowners insurance, maintenance and upkeep of the house. If you are buying a new house, don’t forget that you will need furniture and everything else that will make the house a home. “How much can I qualify to borrow?” is the first question commonly asked. Knowing this is essential for your budget. The first step in determining how much you are qualified to borrow, is to find out how much you can afford to spend on monthly mortgage payments. Financial calculators and spreadsheets can
help you with the math. I can’t give you a calculator but I can give you a spreadsheet. To download the spreadsheet, visit the Title Guaranty of Guam Facebook page for a download link and don’t forget to “like” us while you are there. If you want to take a stab at doing it yourself, create one that looks like Figure 1. The cells that contain equal signs are formulas. Enter them exactly as they appear. The formulas will not show in the spreadsheet but a few cells will display either “#VALUE!” or “0.00”. Formula values will appear as soon as you enter your income and debt payments in column B and the loan rate and term in cells F19 and F20, respectively. To make the spreadsheet looks nice and tidy, use the Number format with comma separator to format columns B, C and F and set the decimal to two places. To calculate the monthly mortgage loan payment you can afford, enter the gross annual income and debt payments of everyone applying for the loan in column B. Don’t put anything other than the formulas in the cells containing formulas otherwise you will get error messages. Let’s enter some numbers to use as an example and to make sure your spreadsheet works: (See Figure 2) In the example, husband and wife earn a combined annual
Figure 1
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Feature gross income of $85,000.00. They have a car loan and a personal loan. Focus your attention on column F. This is where you will find all the interesting stuff. Lenders typically use as a first cut for loan qualification, the housing cost ratio and the debt service ratio. The housing cost ratio is the maximum amount of income you should spend on housing debt. Most lenders limit that percentage to 28% of total gross income. In the example, the couple can afford a home loan with monthly payments as high as $1,983.33 (the amount found in cell F4). The total debt service ratio is the maximum amount of income you should spend on all debt payments including the home loan being requested. Most lenders limit that percentage to 36% of total gross income. In the example the couple can afford total debt payments of up to $2,550.00. Remember this also includes the mortgage loan they are requesting. Since they have existing loan payments they need to subtract those from the $2,550.00 to see how much is available for the mortgage loan. That amount
and a shorter loan term result in a smaller loan amount and vice versa. Income and debt payments are not the only factors lenders look at to determine how much you are qualified to borrow. The actual amount may be different. We used the word “mortgage” but have not said what it means. A mortgage is a legal document you sign at loan closing that gives the lender a security interest in your home and the right to sell it. You are still the legal owner of the home, but in the event you default (fail to honor the terms and conditions of your loan obligation), the lender can foreclose the mortgage. Foreclosure is a process by which the lender takes possession of the property and sells it to repay loss it incurred as a result of your default. The mortgage document is recorded at the Department of Land Management to serve as public notice that a lien exists on the property. A mortgage implies that collateral is offered to guaranty repayment of a loan. Many times I have been asked, “Why was my loan declined? I am using my house as collateral, the bank
Figure 2
is $1,821.18 ($2,550.00 - $728.82), found in cell F11. Even though the housing cost ratio allows for monthly mortgage payments as high as $1,983.33, the existing debt limits the monthly mortgage payments they can afford to $1,821.18. Now that we know the affordable monthly payment, we can calculate (See Figure 3) the mortgage loan amount associated with that payment. See Figure 3. To do that you will need to enter an interest rate and loan term in cells F19 and F20, respectively. The
should not have to worry.” Collateral is not a factor considered in determining one’s ability to repay a loan. Lenders are not in the business of selling real estate. They avoid foreclosure to the point it becomes unavoidable. Borrowers must stand on their repayment ability and collateral is there as a last resort. There are many types of mortgage loans. Some are straight forward and some are pretty creative. We’ll stick to the most common ones.
Figure 3
loan amount is displayed in cell F22. In our example it is $391,324.86: The example uses a 30 year fixed rate loan with an interest rate of 3.79% per annum. Use a loan term and interest rate that apply in your case. (Feel free to email me at jarroyo@tgguam.net if you need help with the spreadsheet.) Note that a higher interest rate
A Fixed Rate Loan is a loan in which the interest rate does not change. If you are given a rate of 4% when you close the loan, the rate remains at 4% until it is paid off. The major advantage of a fixed rate loan is that the loan payments never change. This allows you to make long range budget plans since you will always be assured that at least one major (Continued on Page 24) CasaGuam.com 9
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On The Cover
Paxia Estates, Yigo’s Newest Neighborhood elcome to one of Guam’s newest neighborhoods, Paxia Estates! It features a gated community 5 minutes to Anderson Air Force Base back gate. These newly built single family homes consists of 4 bedrooms/3 bathrooms, over 2,600 square feet of usable space, with a 2 car garage on a quarter acre lot. Homes feature a beautiful kitchen with an open floor plan perfect for entertaining! The Master bath has 2 double sinks, Jacuzzi tub and a stand up shower. Quality construction. All homes come with 18 month warranty . Call Ellen’s Realty at 647-0888 to view these homes or visit our website “
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Real Estate Spotlight
Adverse Interest - Whose Property Is It Really?
By Kim Anderson Young
Occasionally in the course of our title research, we find the interest of a person or company that does not fit the mold. We call that an “adverse interest”. The definition from Nolo’s PlainEnglish Law Dictionary states “an adverse interest is a right or concern that’s contrary to the interest or claim of another”.
This morning our senior title examiner shared with me the following chain of title on a fee simple lot containing a four unit apartment building: • Juan and Juana Castro deeded the entire property to their corporation, JJ Castro, Inc. • JJ Castro, Inc. deeded Unit 1 of the building to their son John. • JJ Castro, Inc. deeded the entire property to (Mom) Juana Castro • Juana Castro gave a deed for Unit 2 of the building to daughter, Juanita, but retained a life estate for herself. • Juana Castro gave a deed for Unit 3 of the building to daughter Teresita, but retained a life estate for herself.
O
So who owns the property? Drum roll please. . .the property is owned by Juana Castro, subject to the following: • Adverse interest of son John, as to Unit 1 • Adverse interest of daughter Juanita as to Unit 2 • Adverse interest of daughter Teresita as to Unit 3 Juana has the right to occupy and manage Units 2 and 3 during her lifetime, but when she passes away, her two daughters have the right to the management of those units. However, since the property is still in one piece and has not been converted into a condominium, the fee ownership remains in Juana’s name and would be subject to probate upon her death. Common examples of adverse interests include: • Easements across the property for the benefit of neighboring properties. • Licenses to use portions of the property, perhaps for an encroachment or overhang. There are also more dire adverse interests such as squatter’s rights or adverse possession, but those will require an article of their own. Be Safe when dealing with real estate transactions! Contact the professionals at a title company and get a title report showing the ownership of the property and any adverse interests that might appear in the public record. Then follow up your purchase with a title insurance policy protecting you against adverse interests!
Stockunlimited.com
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About the Author Kim Anderson Young, president of Security Title, has over 30 years of experience in the real estate industry. Contact her at kim@securitytitle.net or 647-8100.
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Profile
Learning Something New Everyday By Arlene Taitague Taitingfong
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Mary Preston REALTOR® ELLEN’S REALTY
with her husband and her two children, Taylor and Connor, exploring the island. “We’ve gone deep sea fishing, swimming at the wonderful beaches, visited Fisheye Water Park and Underwvater World. In the future, when our time is up on Guam and we relocate to our next duty station, I want to be able to say I experienced everything the island had to offer.” Not to worry, Preston is not moving anytime soon. Their rotation date is still a few years away. “We are thinking of maybe extending even longer,” she said with a smile.
“I like seeing all of the beautiful homes Guam has to offer.
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It isn't often that a client gets inspired to enter into a new career because of the way a business handled themselves, but that’s what happened to Mary Preston. Preston always wanted to be in the real estate industry, and a few months ago she realized her dream. It started when she moved to Guam from Texas a few years ago. The house she now lives in was listed with Ellen’s Realty. “I really enjoyed my experience with everyone,” says Preston. “They found the perfect home in a new gated community. I love my neighborhood and my neighbors.” Preston was impressed at how the agency took care of her and helped her through the process, so it was no surprise that when she decided it was time to get her license, her first and only phone call was to Ellen Wilkinson, Principal Broker of Ellen’s Realty. Wilkinson guided Preston through her preparation, giving all the information that was needed to become a real estate agent. “Ellen was my advisor and was very helpful in leading me to my goal.” Preston has been a new agent for a few months now, and is very happy with her career move. Previous to her move to Guam, she was a bookkeeper for Whitten Inn in Abilene, TX. She started at an entry level position and worked her way up. The experience enabled her to be familiar with hotel operations and perform other tasks aside from her bookkeeping duties. By the time she left, she had cross trained in every department, making her skill sets well-rounded in the hotel industry. She moved to Guam with her husband, TSgt Brad Preston, who had orders to relocate to our island. Her new career enables her to experience many of her favorite things in life. “I enjoy meeting new people, helping them find the perfect home, and I love being able to drive around this beautiful island everyday,” says Preston. Although she is still new to the field, she readily gives this piece of advice to those interested in getting into real estate. “I would tell them to have patience. Everyday, you will learn something new.” Preston commented on CasaGuam magazine, “I like seeing all of the beautiful homes Guam has to offer. I know I can see all of the homes for rent or sale online, but I feel that you get a different experience actually seeing it in a magazine. It’s also convenient to use as a resource.” When she is not working, you will find Preston spending time
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From the Experts
Tax Relief For Real Estate Investors Found in 1031 Tax-Deferred Exchange By Jeremy Rojas
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“The best investment on Earth is earth”. This statement by Real Estate Investor Louis Glickman still rings true and will continue to do so for generations to come. Investment in real estate is one of the most common avenues people use to build wealth, and make no mistake, the tax man will be there to collect his dues when you sell an investment property at a gain. Fortunately, Section 1031 of the Internal Revenue Code (IRC), a provision in the tax code since 1921, provides critically needed tax relief for real estate investors through the 1031 Tax-Deferred Exchange. If you ask the average person what a 1031 Tax-Deferred Exchange is, the odds are you will get a blank stare. If you ask a real estate investor about it, they will tell you that it is the greatest tool available to reinvest the equity you have gained on an investment property. The 1031 Tax-Deferred Exchange allows real estate investors to defer capital gain taxes on the sale of a property providing 100% preservation of equity. This is provided the investment property is “like-kind” and used for business or trade purposes. In simple terms, a 1031 Tax-Deferred Exchange moves the gain from the sale of an old investment property into the purchase of a new investment property. By moving the gain into a new property, you defer paying tax on that gain into the future. This allows investors to use all of the proceeds from their sale to leverage into more valuable real estate, increase cash flow, diversify into other properties, reduce management requirements/costs or allow consolidation into one property. For example, John Doe is selling his single family rental property in Tamuning for $600,000. He purchased the property six years ago for $400,000. He purchases another investment property (raw land) in California for $600,000 using the 1031 Tax-Deferred Exchange. In utilizing this mechanism, he is able to transfer the $200,000 gain on his current investment property into the new investment property instead of paying taxes on the sale. Measured from when the relinquished property closes, the Exchanger has 45 days to identify replacement “like-kind” properties. The replacement properties must be acquired within 180 days. It is important to note the overall transaction must take place within 180 days, not 45 days plus 180 days. I am sure some of you are wondering what a “like-kind” property is by now. The IRC simply requires that the property be of the same nature, character or class without regard to quality or grade. Most real estate will be like-kind to other real estate. For example a commercial property can be exchanged for a single family rental, raw land, a duplex or an apartment building. Another 16 CasaGuam September 2016
notable requirement of the 1031 Tax-Deferred Exchange is that all properties must be on U.S. soil. In most cases, the use of a Qualified Intermediary (QI) is necessary for the successful completion of a 1031 Tax-Deferred Exchange. Being experts in their field, reputable Qualified Intermediaries will ensure that this complex process is completed professionally and in conformity with the Internal Revenue Code and United States Treasury Regulations. Companies such as Asset Preservation Inc., offer services for 1031 Tax-Deferred Exchanges on Guam. In using a QI, one can have peace of mind knowing their transaction will be handled properly. Now that I have shared the news on this useful tool, I suggest taking advantage of it while you can. There have been proposals in the House and Senate to eliminate 1031 exchanges as part of a push for corporate tax reform. The National Association of Realtors® issued a brief in August 2016 stating that although no proposals to repeal Section 1031 progressed in the 113th Congress, if tax reform is introduced in the 114th Congress, Section 1031 could still be at risk. Advocates are working hard to preserve this program that studies have shown to encourage investment, contribute to federal tax revenues and create jobs. To learn more about 1031 Tax-Deferred Exchanges you can visit: www.apiexchange.com or give us a call at the Pacific American Title Insurance & Escrow Company at 671-648-7777.
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H o w To D . I . Y.
Easiest Cupboard Pan Lid Organizer Haters of messy pan cupboards everywhere... rejoice! This quick cupboard door modification will leave you with more time to enjoy cooking dinner and sipping wine and less time searching for that elusive pan lid that's hidden itself inside your deepest stock pot or slipped down behind that slow cooker you've never used. I first did a similar hack a few years ago whilst a student. Finding pan lids annoyed me as much then as it does now and so after seeing a very elegant solution on Instructables, I set out to make it even simpler. Having moved house several times since then, I was impressed when a friend improved on my previous idea, at which point I realized my current house has the same problem PAN LIDS EVERYWHERE! Iceng (another Instructables contributor) uses the existing fixings in the cupboard, which made me think, can there be an even simpler solution? And, since my cupboard fixings were in the wrong place for his hack, here we are. Cheap and easily available sticky hooks.
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By Jayefuu; www.instructables.com
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Step 1: Tools and Materials You will need.... *drum roll* ... sticky hooks and a pencil! That is it. I found these 16 hooks at the dollar store. Be sure to choose ones that aren't too small.
Step 2: Marking Hold up your selection of pan lids against the cupboard door. Things you may want to consider are whether the bottom one will stick out too far into your cupboard and interfere with objects sitting on the bottom shelf. Position it high enough that it won't do this. When you think you've got a good layout, hold a pan lid up against the cupboard door and draw a mark in pencil at the 4 o'clock and 8 o'clock. If you draw them too close to 3 and 9 it will fall out, if you draw them too close to 5 and 7 it might not be so stable.
Step 3: Sticking Peel the tabs off the stick pad and slap the hooks on the door with the hooks pointing to the approximate center of where the pan will be. No need to be too precise here.
Step 4: Enjoy! We're done. It's that simple! Enjoy your newly less hectic pan cupboard. 18 CasaGuam September 2016
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Curb Appeal
The Difference Between An Investment Property and a Second Home? By Amy Lofsgordon, Contributing Editor, www.nolo.com
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People sometimes use the terms “investment property” and “second home” interchangeably to describe real property that is not their primary residence, but there are some very distinct differences between these types of properties. Read on to find out more.
What Is an Investment Property? An investment property is a property that is: • not your primary residence, and • is purchased or used in order to generate income, profit from appreciation, or to take advantage of certain tax benefits. Basically, if you purchase real estate that will be used to make a profit, rather than used as a personal residence for you and your family, that property is considered to be investment property. There are many different types of investment property including: • residential rental property • commercial property, and • property purchased to “flip” (where the buyer purchases property with the goal of reselling it for a profit). Investment property loans usually have higher interest rates and require a larger down payment than properties occupied by their owners as second homes.
What Is a Second Home? A second home is a residence that you intend to occupy in addition to a primary residence for part of the year. Typically, a second home is used as a vacation home, though it could also be a property that you visit on a regular basis, such as a condo in a city where you frequently conduct business. Often, to qualify for a second-home loan, the property must be located in a resort or vacation area (such as the mountains or near the ocean) or a certain distance from the borrower's primary residence. Second-home loans regularly have a lower interest rate than investment property loans and will usually include a Second Home Rider along with the mortgage. This rider usually states that: • the borrower will occupy and only use the property as the borrower's second home • that the property will be kept available for the borrower’s exclusive use and enjoyment at all times • the property cannot be subject to any time-sharing arrangement or rental pool, and • the property cannot be subject to any agreements that require the borrower to rent the property or give a management firm (or any other person) control over the occupancy and use of the property.
Second-Home Loan or Investment Property Loan? Many lenders will not offer a second-home loan if the borrower intends to rent the property out for any period of time. For example, you may qualify for a second-home loan if you plan to live there during the summer, but do not intend to rent it out at other times. On the other hand, an investment property loan is probably appropriate if you want to reside in the home during the summer, but plan to rent it out the remainder of the year. If you are considering taking out a loan to purchase either an investment property or second home, make sure you understand the differences between these terms and make your intentions clear to the lender when you start the start the process of applying for the mortgage. This will ensure that you obtain the correct type of loan for the type of property you intend to purchase. 22 CasaGuam September 2016
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FEATURE – (Continued from Page 9) monthly expense will remain unchanged. Another advantage is that you will be better off financially if market rates increase. A disadvantage is just the opposite if market rates decrease. An Adjustable Rate Mortgage or ARM is a loan in which the interest rate adjusts up or down at preset intervals over the life of the loan. These periodic adjustments can be as short as a month or can change every 1, 3 or 5 years. For example, a 1 year ARM has an interest rate that stays fixed for one year and then adjusts to a new rate at every one year anniversary. The ARM interest rate is determined by two things, the index and the margin. The index is what the interest rate is pegged to and can be any rate that make sense to the lender so long as it is widely published. For example, it can be the prime rate published in the Wall Street Journal. The margin is a spread added to the index. The sum of the index and margin is called the indexed rate. For example, if the indexed rate is the Wall Street Journal prime rate plus a 2% margin and the prime rate is 3.5%, the indexed rate is 5.5%. Some ARM loans limit the amount periodic interest rate adjustments are allowed to change. For example, if the current rate is 5.5% and the periodic adjustment cap is 2%, the maximum rate allowed is 7.5% even if the indexed rate is 8.25%. All ARM loans have a lifetime rate cap which limits the maximum rate allowed over the life of the loan. For example, if the lifetime cap is set at 10%, the interest rate can never exceed 24 CasaGuam September 2016
10% even if the indexed rate does. The interest rate at its lifetime cap is called the fully indexed rate. A hybrid ARM is a type of ARM that has an initial fixed rate period followed by an adjustable rate period. For example, a 7/1 ARM has an initial fixed rate of 7 years followed by annual rate adjustments. ARM loans typically have the advantage of initial interest rates that are lower than fixed rate loans. However, as market conditions change, the indexed rate could become greater than a fixed rate loan. Also, lenders pre-qualify borrowers on the fully indexed rate which could make it more difficult to get a loan. When considering an ARM loan, borrowers need to plan for the possibility of increasing monthly payments. Interest Only Loans are loans where only interest payments are paid during the loan term. The loan principal is paid at maturity. A construction loan is an example of an interest only loan. Loan principal is disbursed incrementally when payments are made to the contractor. The lender bills the borrower an amount to cover interest on the loan principal outstanding at the time of billing. The loan principal is repaid when the loan matures, most often by a permanent loan from the same lender. Next month, Part 2 will have information covering loan amortization and how the monthly loan payment is applied to interest and principal; escrow accounts, private mortgage insurance, new loan disclosures, and what lenders need to provide to their clients.
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W h o Ya G o n n a C a l l ?
472-3497 dvertising “Your Ac Spe ialist” Arlene Taitingfong Editor
Email: ataitingfong@yellowpagesink.com CasaGuam.com 25
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Classifieds Commercial Rentals Hagåtña Commercial space for rent. 1,792 square feet. $3,500/month. Call Ellen’s Realty at 647-0888 for more details!
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14,221 SqMtrs. Fairly level. $711,050.
Piti
Ocean & mountain views.
Tamuning 5 contiguous spaces available right on Guam’s busiest intersection! Highly visible, ample parking, backup generator. $1,312.50/mo each. Call Sandy at 687-6006.
Yigo Northpoint Commercial Complex Space for Rent. $1.80 per square foot, $0.60 per square foot for common fee. Call Rowena at 483-4317.
Residential Rentals Agat Agat 2BR. Ocean View! Renovated! Ocean View BBQ Patio! Near NavSta, Port, Polaris, beach, stores, and schools! $1200.00. 649-8265 or 727-8265
Barrigada 4BD/2BAHome . Central living close to the airport, schools and shopping areas. $2,700/mo. Call Lolita at 479-8891 or 688-6743.
Dededo 5BD/5.5BA home. $4,800/mo. Call Ellen’s Realty @ 647-0888 for more details! 3BD/2BA home for rent. $1,980/mo. Fully renovated. Fenced & gated. Call Loisa @ 727-6880.
Nimitz Hill
Dededo 2BR, Ocean view! Across the beach! Close to Port, Naval Station, Polaris, & Stores. Max two tenants. $700 (Price does not include utilities) Call 649-8265 or 727-8265.
3BD/2BA home. Fully fenced. Price reduced. $305K. Call Ellen’s Realty at 647-0888 for more details!
Sinajana
Santa Rita
Merizo Almost one acre lot ready for farming or dream home in quiet but lush area. $44K. Call Flora @ 727-2955.
Ordot-Chalan Pago 880+/- square meter land in a great
Holiday Tower Condo - 2BD/2BA. Corner unit. Ocean & island views. Upscale & upgraded kitchen w/ extra counter space & stainless appliances. $2,205/mo. Call Sandy @ 687-6006.
4BD/3BA upgraded home. Fully fenced. Minutes away from Naval Station. $310K. Call Lolita at 479-8891 or 688-6743.
central location and immediately available
Talofofo
$65K. Call Flora @ 727-2955.
Tamuning
Large 3BD/3BA home. Includes 25K generator, 650 gal water tank. $360K. Call Dennis at 727-3815.
Piti 24,173+/- square meter lot with partial
Tamuning
ocean view for agriculture or developers.
4BD/2BA centrally located home for rent, along Carlos Heights. Tumon is closeby. Call Lolita @ 688-6743 or 479-8891 for more details.
Tumon Tecio Tumon Villa - Awesome 3BD/2BA unit in the heart of Pleasure Island. Walking distance to beaches, dining, shopping & more! $2,600/mo. Call Janet @ 687-1841. Tumon Horizon Condo - 2BD/1BA. Fully renovated & furnished. Water included. Call Weiwei @ 777-0688.
Yona 4BD/2BA Home. Peaceful and safe environment. Breezy and airy location. $1,500/mo. Call Lolita at 479-8891 or 688-6743.
Tumon Tumon Condo. 3BD/2BA. Great location close to restaurants, shopping areas, and minutes away from beaches. Grea investment. $150K. Call Karen @ 988-1883.
central shopping and business areas.
Base. $846,055. Negotiable. Call Flora @ 727-2955.
Talofofo 929+/- square meter land for sale. Quarter acre lot, rectangular in shape. $57,400. Call Lolita @ 688-6743 or
Yigo
479-8891 for more details.
3BD/2BA Home, gated, storm shutters, split A/C, backup generator. $195,000. Call 688-8276 or 653-5679.
Yigo
Wonderful 2BD/2.5BA home. 1,714 +/- sf living space. Fully fenced. $321K. Call Suzanne at 482-6426.
2,787+/- square meter land in the midst of quiet ambiance. Almost 3/4 acre lot just outside the back gate of AAFB. $105K. Negotiable. Call Flora @ 727-2955.
Land for Sale Agana Heights
4BD/5BA modern home with spacious living area. Includes executive master bath with jacuzzi. Lot +/- 969 square meters. Price dropped to $508K! Call Karen at 988-1883..
to build. Quiet neighborhood but close to
Close to Harbor, Port Authority & Naval Oka Tower Condo. 2BD/2BA 1st floor unit. Superb amenities. $298K. Call Sandy at 687-6006.
Residential Sales Barrigada
5BR/4BA 3000f2 Officer/Executive House. 180 degree Ocean View. Watch The Ships Come In! Military Approved. Landscaped. 213 Mama Sandy Nimitz Hill. $4400.00. (MLS 16-2334). Call 6498265 or 727-8265
Call 649-2121 for more details.
Lovely 1,640 +/- sm parcel fronting Chalan Macajna. R-2 zoned. Includes 2 lots. Close to the Firary. Rare opportunity. $169,500. Call Anthony at 688-8198.
Yona One of seven lots and could become a developer’s dream. Located in the heart of Pulantat, Yona. 1,858+/- square meters. $50K. Call Flora @ 727-2955.
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Closing
Message from the President Deanna Palmer 2016 President Guam Association of REALTORS®
Message from the Chief Executive Officer and Government Affairs Director Peggy Araullo Llagas Guam Association of REALTORS®
Let’s get Your Property SOLD!
SAFETY AT THE OFFICE
To get your home sold quickly, it’s important that REALTORS® are able to show it to as many potential buyers as possible. After pre-qualifying the Buyers, a REALTOR® will talk to them and learn what kind of home they are looking for, within the budget the Buyer can afford. Then the REALTOR® will search all the available homes in MLS (Multiple Listing Service) for those most closely matching what the buyer wants. When a REALTOR® is compiling a list of homes to show a buyer, they will show properties that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device that holds a key to the home, that only qualified REALTORS® can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”. If at all possible, let your REALTOR® put a lock box on your home for easier showing and therefore a faster sale. If you can’t do a lock box, you need to be sure that you make it as convenient and as easy as possible for other REALTORS® to show your home. When you leave in the morning, put everything away and make the beds, just in case you need to show the home with just a short amount of notice. When your REALTOR® calls for an appointment, do whatever you can to accommodate the showing of your home to buyers on their available schedule. Remember the buyers are looking at other homes. If you do not make your home accessible, you could loose out on the opportunity to show and SELL your home. If you are home during the showing, it is best to either leave the property, or at least go outside when the REALTOR® and buyer arrive. Buyers feel much more comfortable looking through the property with their REALTOR® and imagining themselves living there. The REALTOR® will point out the benefits of your property based on what that Buyer told them is important for them in a home they want to purchase. Be sure to have your REALTOR® ask for feedback from the showing. The feedback will help you understand why the property is not selling. Sometimes it is just not the right place, others times, there may be some things you can do to correct a problem for potential Buyers.
Apply the following safety procedures to help keep you and your belongings safe at the office:
GUAM ASSOCIATION OF REALTORS® The Voice for Real Estate on Guam Suite 236A Julale Center 424 West O'Brien Drive, Hagatna, Guam 96910 Office: (671) 477-4271 • Fax: (671) 477-4275 28 CasaGuam September 2016
General Security Measures • Know staff in other nearby businesses be aware of their schedules. • Ensure all doors other than the main entrance are secured. • Make certain windows are not obscured so that passersby can see in. • Make sure there is a clear exit route from the service desk to the door. • Never allow visitors to wander freely about the business. Have the person whom they want to see come to the front office area and escort the individual to the meeting area. • Have a visitor log book and policy on issuing visitor tags that limit access to certain areas and hours of the day. • If you encounter an individual while working late or alone, indicate to that person that you are not alone. Say something like, “My supervisor will be right with you and should be able to assist you.” • Keep personal information private. Avoid discussing where you live, after-work or vacation plans in front of customers, new coworkers or anyone in general with whom you are not comfortable. • Install a spare phone in the storage room. • Install an alarm, (preferably both audible and monitored). Have alarm buttons in strategic spots; i.e. panic buttons at the reception area. • Install surveillance cameras that will monitor the front entrance, the reception area, and other areas that are accessible to the public. Personal Valuables and Equipment • Never leave valuables, purses or wallets tucked behind counters or on desks. • Lock away personal letterhead and business cards to avoid use by unauthorized people. • Mark equipment for easy identification in the event of theft or damage. Maintain an inventory of all marked items. • Lock up audio/visual equipment when not in use. • Secure spare and master keys in locked cabinets. Protect Client Information Most offices keep sensitive personal information on their computers and/or in paper files— names, Social Security numbers, credit card or other account data—that identifies customers or employees. If this sensitive data falls into the wrong hands, it can lead to fraud or identity theft. State and federal laws govern how personal information should be disposed of. Specifically, the Federal Trade Commission (FTC) has a Disposal Rule that requires businesses to adopt appropriate disposal practices that are reasonable and appropriate to prevent the unauthorized access to – or use of – information in a consumer report. Be sure you check for applicable laws that will dictate how you handle and dispose of personal information. - National Association of REALTORS® -
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