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CONTENTS
Let ter from the Editor letter from the editor
Departments 4
Market Report The $64,000 Question
Emily L.G. Untalan
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Feature 21 Ways to Cut Costs and Save More in 2017
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Real Estate Spotlight Trusts and Title Insurance
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February 2017 • Vol. 10 • No. 02 P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
Profile Noli Villaverde
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
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From the Experts Your First Home: The Down Payment
[ Editor/Display Advertising ] Emily L.G. Untalan
[ Traffic/Circulation ] Shaun Cruz
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How to D.I.Y. DIY Floating Terra Cotta Pot Shelf
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Your World, Our Island Conserving Energy
[ Production Manager ] Mark S. Burke
[ Graphics & Layout ] Mark S. Burke Edwin E. Valencia
[ Website Development ] Edwin E. Valencia
[ Editorial Contributors ] 22
Curb Appeal Curb Appeal with A Touch of Gold
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Who Ya Gonna Call?
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Classifieds
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Closing
Charis Rebecca Brown Sarah Egge Anthony Godwin Rod & Courtney M. Eric M. Palacios Michael D. Rudolph Lisa Scontras Emily L.G. Untalan Kim Anderson Young Cover Photo: Mark S. Burke CasaGuam is Published by:
Buenas, Hafa Adai and Happy Valentine’s Month, Readers! The theme for February is Saving Money for Home and while love lingers in the air, money should be tucked away in your personal piggy bank, or bank account. In MARkeT RepoRT, Anthony Godwin gives his view on the market industry and hints on ways to save and prepare you for closing costs. our FeATuRe will give you a rundown of practical tips to cut costs and save in 21 different ways. Michael Rudolph offers sound advice on how to save for a down payment on your first home in FRoM THe expeRTS. And, in our new section: ouR WoRld, YouR ISlAnd, eric palacios shares ways to conserve energy. When you conserve, you definitely SAVe! And we have Finance Tips from lisa Scontras. She will tell you how to get your finances into shape this year! In ReAl eSTATe SpoTlIGHT, kim Young lays out what you need to know about trusts and title insurance, so don’t forget to take notes! everything we touch(up) should turn to gold in CuRB AppeAl and our d.I.Y. section will show you how to make room in your bathroom and keep it organized. noli Villaverde is our pRoFIle this month. He’s a full time ReAlToR®, a bridge builder and loves to pound the pavement. Who knew that chaos would lead him to Guam. His story is pretty amazing! GAR president Maria Miller delivers her second Message from GAR. She provides the pros and cons of renting or buying. She’ll have you believing that anything is possible! peggy llagas, Ceo and Government Affairs director of GAR, closes off this month’s issue with part 2 of the ReAlToRS® pledge of performance and Service. This is my first CasaGuam issue as your new editor so I ask of you, our loyal readers, to please bear with me. I am, literally, trying to fill in the big shoes my predecessor left just for me. (And we wear the same size shoes!) You are welcome to send in your comments and suggestions to editor@yellowpagesink.com. I look forward to hearing from you soon! until next month, Adios!
Sincerely, emily l.G. untalan
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
The $64,000 question…Literally. looking to buy a home? Before jumping in the car or hopping online, it’s best to take a look at your financial picture and then set a plan in motion. Visit one of our awesome local banks and ask to be Prequalified. If the bank will do it, best to ask for a Preapproval. Both of these should result in letter or spreadsheet looking document from the bank. on this document the lender will show you how much you qualify for; what most of the financing costs will be and how much ‘house’ you can afford. let’s say you are qualified to purchase a home with a purchase price up to to $250,000. If you are going to go with conventional financing, then you will need to come up with a $50,000.00 down payment. So, your financed amount will end up around $200,000.00 after the down payment is considered. Then you will need to concern yourself with the various fees that the bank, appraiser, escrow, title and insurance companies will charge. Some of these fees will be due along the way while others will be due at the closing of your loan/purchase. A reasonable rule of thumb is to consider approximately 7% of your loan amount, so in this case $14,000.00 for closing costs. With conventional financing you will need to have $64,000.00 ($50,000 plus the $14,000) handy when it’s time to close on the loan/purchase. not many buyers have planned this far in advance for their home purchase. That’s why there are many other programs available that reduce or eliminate the down payment requirement; and some programs that offer help with the closing costs.
Some examples of these programs: VA Guaranteed Loans. If you have qualified military or reserve service you may qualify for a mortgage of up to 100% of the purchase price. This greatly reduces your up front cash requirements for a home purchase, but also possibly leaves you with very little equity in the property. www.benefits.va.gov/homeloans/index.asp Guam Housing Assistance Program. Qualified first time homebuyers may receive a grant of up to $10,000 towards the purchase of a home as long as the total cost of the home, together with closing costs, does not exceed $250,000.00. Many residents have availed of this program. http://www.guamhousing.org 4 CasaGuam Februar y 2017
FHA Loans. Qualified buyers may also avail of an FHA loan. These loans offer up for 97.5% financing requiring a down payment of just 3.5% of the loan amount. https://portal.hud.gov/hudportal/HUD?src=/buying/loans Loans - HUD/U.S. FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) - which is part of Hud - insures the loan . www. portal.hud.gov USDA Single Family Housing Guaranteed Loan Program. Buyers that meet income-eligibility may also consider this program that provides for up to 100% financing of the purchase price. www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program Single Family Housing Guaranteed Loan Program | USDA Rural www.rd.usda.gov Interested applicants are encouraged to contact their local mortgage lenders to inquire about applying for the guaranteed loan. uSdA does not endorse any specific Lender Programs. Many lenders also offer various financing options that can provide for low down payments.
How about that $14,000 for Closing Costs? Although many of the above programs help reduce or eliminate the requirement for a down payment; many do not include a provision for payment of the closing costs associated with the arrangement for financing. In some cases, the buyer/borrower, as part of the negotiation process, can get the seller to pay some or all of these costs. There are program/lender limits on how much a seller may contribute to these costs.
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Market Repor t
Market Snapshot January 1, 2016 through December 31, 2016 By Anthony Godwin
Condominium/Townhomes For Sale Units Sold: 177 Average Days On Market:* 129* Average Sold Price: $213,055.00 Average Listed Price: $223,941.00 List to Sold Ratio: 95%
Condominium/Apartment/Townhome Rentals Units Rented: 1,028 Average Days on Market:* 58 Average Monthly Rental: $1,613.00 Average Listed Price: $1,658.00 List to Rented Ratio: 97%
Single Family Home Sales Units Sold 323 Average Days On Market:* 162* Average Sold Price:ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ $319,731.00 Average Listed Price:ÊÊÊÊÊÊÊÊÊÊÊÊÊ $330,217.00 ÊÊÊÊÊÊÊÊÊÊÊ List to Sold Ratio:ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 97%
Single Family Rentals Units Rented: 723 Average Days on Market:* 59 Average Monthly Rental: $2,285.00 Average Listed Price: $2,400.00 List to Rented Ratio: 95% *(listed date to sold closed date)
Disclaimer: All data from the Guam Multiple Listing Service (MLS) as reported by REALTORS to the service. Properties transactions not reported to the service are not included in these statistics. Information deemed reliable but not guaranteed. Not responsible for errors or omissions.
Some other ways to acquire the money for closing costs include: Personal Savings. once you know approximately how much you will need for closing costs set up a separate ‘house buying ‘ account and set a timeline to raise the necessary funds. You may have to make some short term sacrifices, but the benefits to home ownership will far out weigh that skipped vacation or other treat. place any bonuses, tax refunds, gifts of cash in your ‘house buying’ account. Have a Sale. Sell off unused items and stash the proceeds in your ‘house buying’ account. Family. Several loan programs will allow gifts from family members that can be applied towards down payment and closing costs. Talk to you loan officer about limits and documentation requirements. Your ReAlToR® has a ton of knowledge regarding financing and negotiation that you can take advantage of when considering a home purchase. don’t have a ReAlToR® ? one of my team mates at Today’s Realty will be happy to help. Give us a call at 649-4361 or visit us online at http://www.guamhome.com. CasaGuam.com 5
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Feature
21 Ways to Cut Costs and Save More every Month in 2017 By Charis Rebecca Brown; www.clark.com e are already in the month of February and if you haven’t started saving for 2017, you better get on it. And, STAY ON IT! New Year’s resolutions usually start off on the right track up until the end of the first or second quarter, at least for me. Then, when mid-year comes around, we often find ourselves in a rut, or a minor set-back. Unexpected situations arise and, at times, are beyond our control. We chose this article by Charis Rebecca Brown to tie in with our theme: Saving Money for Home. We hope you’ll find her tips helpful. – Emily L.G. Untalan Ready to take control of your money in 2017? By making a few small changes now, you can start the new year with a fresh budget and a plan to get your spending and savings back on track. From cable bills to everyday spending habits, these 21 tips will help you save more, spend less and get on the fast track to financial success!
21 ways to save more every month! 1. Set goals. You might think that first on our list should be the infamous new Year's resolutions we've become so accustomed to year after year. But since new Year's resolutions tend to flop by January 30 each year, goal setting is a much better option! Setting goals is a habit for people who win with money, and it should become a habit for you too. Studies have shown that just by having a goal for something it brings you closer to that goal versus not having any goal at all. An important part of this equation is making sure your goals are S.M.A.R.T.: Specific, measurable, attainable, realistic, and time oriented. once you have a goal or goals in mind that include all of these attributes, chop your goal into smaller pieces, or milestones, that you can hit more easily. once you hit each milestone, celebrate! This will help to encourage you as you move forward toward your financial goals. Also, write down your financial goals, and put them in an obvious place so you see them often - such as on the refrigerator or next to a door you walk through frequently. 2. Budget. It's hard to tell where you're headed if you haven't mapped out where you are! The word "budget" gets a bad rap — but it's not about depriving yourself or taking things away — it's about adding freedom to your life. When you take control of your spending and saving, you give yourself the freedom to make certain 8 CasaGuam Februar y 2017
choices when you want to make them. Bottom line: budgeting isn't as scary or as difficult as it sounds — it's just about making sure your money goes where you want it to go. 3. Negotiate prices. did you know that you can negotiate in almost any kind of purchasing situation? Though you might have previously thought negotiation was only for the bigger purchases such as home buying or car shopping, you can also negotiate at retail stores and online too. You can even negotiate to lower your bills! 4. Slash excess spending. every so often, it's a good idea to track your purchasing history to see where your money is going. An easy way to do this is by using budget apps like Mint.com or BillGuard.com. Then, once you see where your money is going, you can make adjustments where necessary. do you really need to buy that new iphone or Android device every time a new one comes out? You might even want to try a 30 day household financial cleanse to jump start your savings. 5. Cut monthly bills. Monthly expenses can bite us if we aren't careful. Cable is no exception! With the average cable bill being about $99.10, according to liechtman Research Group, cable and other monthly expenses can really add up over time. 6. Switch up your grocery routine. There is no doubt that spending in the grocery category of your budget can vary a Ton from household to household. I've read about people who spend anywhere from $70 to $1,500 - for just two adults. But the good news is, even if you have trouble spending in the grocery category, this is one place where you can save a ton! It just requires a little extra time, a few sacrifices, and some practice. 7. Transfer debt to a lower interest credit card. If you have credit card debt, doing a $0 balance transfer might be a big way to save. However — you'll want to be careful: If you don't allow yourself enough time to pay off the card before the interest offer expires, you could be hit with even bigger interest fees than what you are paying now. 8. Be picky about your savings account. picking the right savings account is essential in order to make sure you can save the most and earn the most while your money is being tucked aside for a rainy day.
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Feature 9. Use lower cost financial trading apps. Instead of paying big fees on trading, did you know you can spend little to nothing on trading? Apps like Acorns, Robin Hood and Stash make it even easier to trade! 10. Invest under the right tax shelter. How you save for retirement makes a BIG difference in how much you'll earn over the course of your working years. Be sure to follow Clark's Investment Guide to save the most for retirement! In addition, save even more as you invest by using a fee-only financial planner. 11. Switch your car. The average American spends $479 a month on a new auto payment, according to edmunds.com. That's a hefty price to pay, especially considering just how much money this eats up over time — not to mention the opportunity cost of not having this money freed up to save for retirement and take advantage of compound interest! If your car payment is more than 10-15% of your monthly income, you might want to switch your car for something with a lower monthly payment, or opt to pay for something less expensive with cash. 12. Always shop sales - NEVER PAY FULL PRICE. Seriously. The key to this advice is to make sure it's something you already need - versus buying something just because it's on sale. 13. Make alternative choices. Go out for dinner and a movie or cook at home? Buy a brand new car or buy a reliable used car? Simple alternatives can make a big difference when it comes to saving. 14. Switch your wireless provider. Has it been a while since you switched your cell phone provider? If so, you might be missing out on big savings! 15. Buy prescriptions (at a cheaper price) at a different location or online. prescription prices vary from store to store - even within the same zip code! Therefore, it's essential to shop around when buying prescriptions.
16. Learn to save money when eating out or brown bag your lunch. even if you do decide to eat out, there are ways to significantly reduce your dining bill while still enjoying the experience. But, if you really want to cut your eating out expenses, opt to brown bag your lunch instead. 17. Use an automated savings plan. If you use direct deposit, many employers can set up a percentage or dollar amount every paycheck to go directly into a savings account of your choice. As long as you keep a certain minimum or do a direct deposit of a certain amount, most bank savings accounts should be fee-free. Saving money before it hits your checking account is a brilliant way to save: pain-free and worry-free. Make technology work for you and watch your savings grow effortlessly! 18. Reduce your energy costs using a programmable thermostat, turning your water heater down (since it's probably higher than it needs to be) and replacing your light bulbs with energy efficient bulbs are easy ways to cut your home energy costs every month. By reducing your expenses, you're left with more money to save! 19. Re-shop your car insurance If you haven't re-shopped your car insurance in a while, now is the time to do it! You could be missing out on savings you didn't even know about. 20. Buy a coffee machine A splurge here and there is no big deal, but when you're buying coffee every day — or every weekday — it can really start to add up! Your daily coffee habit could actually be costing you anywhere from $500 to $600 a year, and that's a lot of money that could be saved. depending on how fancy you want to get, you can purchase a quality coffee maker on Amazon for anywhere between $15 and $50. 21. Track your spending Tracking your expenses is the best way to get control of your money. For a few reasons. First, if you want to stop living paycheck to paycheck, you have to know where your money is going and you have to give every dollar a purpose. Tracking how much money is coming in versus how much is going out — and where exactly it's all going — is the key in making smart financial decisions that have a big impact on both your life now and your future. If you don't pay attention, it becomes very difficult to make sure that you're adequately prepared for each of your big goals — including retirement savings and even shorter-term goals, like buying a house and building an emergency savings fund. utilizing your smartphone to help you save can be a big help in tracking - and saving your money. If you want to keep it simple, the old fashioned envelope system works just as well — taking out specific amounts of cash to cover certain monthly expenses. About the Author: Citing Source: Charis Brown is the Deals Editor for Clark.com. She enjoys saving money wherever possible and loves finding a great deal. Her favorite discount store is Nordstrom Rack, where she once bought something for $.01! Charis is also the author of TGIF Next Gen and lives with her husband and cat near Atlanta, GA. CasaGuam.com 9
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Finance Tips
How To Get Your Finances Into Shape In 2017 By Lisa Scontras he new year is traditionally a time when we make plans and start anew with commitments to make positive adjustments to our lives — quit smoking, exercise more, and get our finances into shape. Maybe you packed on a few extra pounds over the holidays — no problem, you can hit the gym. likewise, if you overspent last year, an appointment with a financial expert who can help you to reshape your finances is just the right medicine. If your financial goals for 2017 include buying a home, paying off debt, or saving money for a college fund, now is the time to make those dreams a reality. Too often, the new year brings a stack of credit card bills from all your holiday shopping. What better time to sit down and map out a sound financial plan? “Meet with a personal banker at First Hawaiian Bank to discuss your financial situation and what you want to achieve this year,” says lou Sanchez, Assistant Vice president and Sales Manager at First Hawaiian Bank. one of the most common new Year’s resolutions is to buy a home. Mortgage interest rates have been at record lows for so long, we have nearly forgotten the impact they have on affordability. As rates go up, the cost of buying a home will too. Timing is everything. If you have wanted to buy a home and for whatever reason you are still renting, take heart … it isn’t too late. A personal banker at First Hawaiian Bank can help you review your finances, address any credit issues, calculate the maximum purchase price you can afford, and identify the funds you’ll need for your down payment so you can start shopping for your home with confidence. You’ll see that with a plan, your dream of homeownership is within reach. If you already own a home, your goal in 2017 might be to eliminate unnecessary bills and lower your debt — credit cards, student loans, and car payments can pile up. First Hawaiian Bank is standing by to help homeowners consolidate debt with a variety of home equity products. “Getting your finances in order through bill consolidation is a great resolution because it can simply save you money,” says Sanchez. “Give your debt payoff plan a kick start by paying off all your other loans and credit card balances, while lowering your interest rate.” “our equity Firstlines are convenient and flexible enough to use for large purchases, to consolidate high-interest bills, or pay for tuition and school expenses,” says Sanchez. “Because the line is secured, interest rates are typically lower. In addition, interest paid on the Home equity line of Credit (HeloC) may be tax deductible, whereas interest on personal unsecured loans, lines and credit cards are not. This may provide additional savings.”
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If you do not own a home or have sufficient equity in your home, a personal loan can also be used to consolidate other high-interest credit card bills and debt into a fixed-rate loan with manageable monthly payments, according to Sanchez. “Interest rates may rise, so the sooner you can start paying off unwanted high-interest debt, the sooner you may see the benefits and realize the savings,” Sanchez says. “Sometimes just getting started is the toughest step to becoming financially fit,” says Sanchez. “Talking with a knowledgeable personal banker can help alleviate your stress by assisting you in selecting the best financial product to fit your needs and provide the most manageable monthly payments. If getting your finances in shape is at the top of your list in 2017, visit any First Hawaiian Bank branch and speak to a personal banker today.” *Paid Advertorial
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Real Estate Spotlight
Trusts and Title Insurance By Kim Anderson Young
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So you have finally taken the big step and formed a trust in order to avoid your heirs having to probate your estate and pay excess inheritance taxes when you move on to greener pastures! Good for you! The next important step is to transfer all of your assets into your trust. This is called “funding” the trust and without taking this step, all your hard work and good intentions may be wasted. Your trust attorney and/or tax accountant may recommend that you contact Security Title to conduct a title search of any property that you own; if you own multiple properties, we can even perform an asset search to make sure no property is left out! The title report will reveal the current exact ownership and legal descriptions of your property, and will provide accuracy for the transfer from the current ownership into the ownership of your trust. If you own property in your name (or as community property), transferring title to your trust is an easy step involving just a simple quitclaim deed or deed of gift. Your trust attorney and accountant will walk you through this step, providing the necessary documentation. To ensure that your title insurance remains in full force and effect, Security Title can assist in the process. We will take care of recording the deeds and will provide an inexpensive endorsement to your title insurance policy that will extend the coverage from your individual names to your trust.
Remember just these four steps: • Counsel will draw your Trust. • Security Title will provide current title reports for property legal descriptions and vesting. • Counsel will deed properties into your trust. Called “funding the trust”. • Security Title will record the funding deeds and provide endorsements to your title insurance coverage. Trusts are becoming a very common estate-planning tool, and not just for the very wealthy. not only do they minimize inheritance taxes and avoid probate, they can be used to care for the health, education and welfare of minor children, or incapacitated family members when you are no longer there to care for them. Remember, though, a trust is not a stagnant entity….the care and feeding of it is your responsibility! It needs to be continuously updated and properly managed to ensure it is the tool it is designed to be. 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
Avid Runner Builds Bridges to Every Homeowner’s Dream
By Emily L.G. Untalan
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The old adage “hard work pays off ” holds true for this month’s profile feature. noli Villaverde is an avid runner and hard worker with sales in his blood. Immediately after graduating college in Manila, he went into sales, did a “brief stint with a financing company as a credit investigator and financial analyst,” he explains, then, back to sales. prior to moving to Guam, he worked in automotive sales in the philippines. It was during this time the philippines descended into chaos. After ninoy Aquino, a former philippine Senator, was assassinated, “The economy went into a tail spin, interest rates went sky high, and prices of commodities were out of reach!” Villaverde expressed. It was then that he decided it was time to leave his home. Arriving on Guam in September 1983, he found employment for five years at the now defunct, pacific Motors Corp., a Ford and Mazda dealer. When pacific Motors Corp. closed, Atkins kroll, a General Motors and Toyota dealer, hired him. He worked there for 11 years. Villaverde became interested in Real estate while working at Ak. He took the real estate class with Century 21 Commonwealth Realty. “Though the franchise offered some training, my sales experience helped me through. I'm mostly self-taught. I attended trainings and seminars offered to all real estate practitioners at that time, through the Guam Association of ReAlToRS®.” He started out as a part time Agent for five years and realized it was just not enough. The obvious thing to do was to go full throttle so he left Ak and became a full time ReAlToR® at Century 21 Commonwealth Realty. “You can’t be successful in this business doing it part time,” he expresses. 21 years later, he’s still with Century 21 Commonwealth Realty, “…the well-known and trusted brand,” he states, and helping people’s dreams come true! “I really enjoy real estate because of the time flexibility, potential for unlimited income, learning real estate investment and being the bridge to a lot of people’s dream of owning their own home,” he passionately explains. If you are considering doing real estate, “put your heart into it; love the profession,” Villaverde suggests. “don’t dive in because of so and so — whom you think isn’t smarter than you — made millions and if he/she can do it, you can too! Circumstances are different. If you have a full time job, keep it and be a part timer for a few months. Find out, first, if real estate is really for you because reality will set in quickly. And, if you’re dreaming of a nice lexus or BMW, pinch yourself or wake up! There’s a lot of work ahead!
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Noli Villaverde REALTOR® CENTURY 21 COMMONWEALTH REALTY
Finally, be smart and confident. Give the impression that you know what you’re talking about when dealing with a client.” Villaverde is keeping it real. no pun intended but his straight-forwardness is fueled with compassion and honesty. Villaverde expresses his delight with CasaGuam. “I’m glad there’s a magazine like CasaGuam that’s devoted 100% to real estate. people who are not technologically savvy, just yet, can simply browse the pages to see the market and what’s trending in the industry. When Villaverde is on a break from making people’s dreams come true, he pounds miles and miles on the pavement. literally! If he’s not running all 5k’s every weekend, he runs at least 12 miles, or three days a week, religiously. While at home, he spends time with his family and with his books, magazines or ipad for the latest news in and around the world.
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From the Experts
Your First Home: The Down Payment By Michael D. Rudolph, MBA, NMLS 155614
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The old requirement of putting 20% down plus closing costs to purchase a home still exists. However, a $50,000 down payment plus closing costs on a $250,000 home may be insurmountable even for the disciplined saver or the frugal spender. Fortunately times have changed. To buy a home you still must save. Save. And save some more. eliminate the unnecessary. Save by cancelling cable television but keep internet; cancel the landline but keep cell phones; and an overall reduction in spending on meals and entertainment helps. You need a cushion, you need reserves. What if a $50,000 down payment is absolutely out of the question? There are loans that require little to no money down and only require payment of the closing costs. Some lenders offer 100%
financing to Veterans and to borrowers with low to moderate income through the uSdA’s Rural development program (uSdA Rd); and up to 97% financing on a home loan with Mortgage Insurance (MI). MI is a type of mortgage insurance used with conventional loans. MI protects the lender - not the borrower if the borrower stops making payments on the loan. MI is usually required on a conventional loan with more than 80% financing. The MI annual premium is largely based upon 1) if the loan is a fixed rate or adjustable rate mortgage; 2) the amount financed; and 3) credit score. We cannot have a home buying article that does not address credit scores. A credit score is important. A score determines eligibility to borrow money, how expensive it is to borrow money and the cost of your MI. But a credit score does not need to be the albatross around your neck. Simple ways to improve your credit score are to: 1) pay your credit cards and loans on time (you’ll need at least two years of on time payments); 2) pay down those lingering credit card balances below 50% or eliminate them; and 3) get a three bureau credit report and dispute incorrect information. Successful efforts to eliminate debt and improve the accuracy of your credit report will positively impact your score in a few months. If after a successful campaign of battling your debts and fact checking the credit bureaus your scores remain low, do not despair. There are still options to purchase your home. Some Guam lenders can offer loans to borrowers with lower scores; that include MI and sometimes with shockingly low closing costs. You’ve read about saving. You’ve read about financing options. You’ve read about MI and credit scores. now what? now develop a plan to create a budget that includes monthly savings goals. It is February 2017, obtain a copy of your free annual credit report. Go to the phone book, find a local lender and make an appointment with a licensed residential loan originator. Find out which loan program is right for you and what you can afford. Find out how much that home you’ve passed by so many times will cost. Find your future. About the Author Michael D. Rudolph is a licensed mortgage loan originator with Community First Guam Federal Credit Union, NMLS 634505. Community First is a full service, member-owned, financial institution. The Credit Union is an Equal Housing Lender and is federally insured by the National Credit Union Administration. Community First operates three Service Centers in Hagåtña, Tamuning and Dededo.
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H o w To D . I . Y.
Floating Terra Cotta Pot Shelf Bathroom Organization By Rob & Courtney M., Hometalk Team do you find yourself having a cluttered space in the mornings when you're getting ready for the day? This project is perfect for you — it will allow you to organize your sink/vanity area, so mornings are a breeze for you to get ready! My sister-in-law, Brianna, needed an organization overhaul for the vanity in her bathroom and this cute floating shelf solved her problem while adding a touch of decor to her space.
D BEFORE
Bree didn't have any shelving around her vanity to hold her beauty essentials, so her vanity ended up looking busy and cluttered.
Supplies: • 5/4x8' common board (If your hardware store has something shorter than 8' feel free to grab that! unfortunately, the only length available at your local hardware store • 3 (4") terra cotta pots • dewalt 20v max drill • 2 1/2" Timberlok screw • 3/4" paddle bit • 3/16" drill bit • 3 5/8" hole saw • countersink drill bit • dewalt Right Angle Attachment • measuring tape • paint brush (There's a 2" brush in this photo but I ended up using a 1" angled trim brush.) • Behr premium plus Interior Semi-Gloss enamel ultra pure White paint & primer in one
Not pictured: • fine grit sandpaper • dewalt miter saw • Behr premium plus ultra Interior Satin enamel Stain-Blocking paint & primer in one (color: French Colony) • Irwin Quick Grip clamps (optional but recommended)
STEP 1: Cut and sand wood First, I squared off the end of my board to ensure a nice, clean final piece of wood. Then, I measured in and marked at 15" and cut at my mark. 18 CasaGuam Februar y 2017
next, I knocked off the edges with a piece of fine grit sandpaper. Make sure to get the edges good—once the entire shelf was finished and up on the wall, I realized I could have done a better job at sanding the edges smooth.
STEP 2: Measure and mark for holes once my wood piece was cut and sanded, I found the half way point of the board and marked in from the left at 2 3/4" and also from the right at 2 3/4", then at 7 1/2" (the middle).
STEP 3: Clamp board to work surface (optional) This step is optional but highly recommended. I took two clamps and clamped the board to my work surface to ensure that it was stationary while I drilled the holes.
STEP 4: Drill holes for pots Finally, it was time to drill the holes for the terra cotta pots to fit into. I used a 3 3/8" hole saw attachment for my drill, ensuring that the drill bit on the inside of the hole saw was directly on my marks.
STEP 5: Paint shelf once all three holes were created, I applied a coat of white paint to the board/shelf. I let that dry completely, then applied a second coat. Make sure to get all the nook and crannies of the wood, especially on the inside of the holes and the outer edges.
STEP 6: Drill hole for shelf and attach to wall next, I made a starter hole for the screw that would mount the
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H o w t o D . I . Y.
shelf to the wall. I did this by using a 3/4" paddle bit—this will create a divot that will allow enough space to drill the screw into so that the screw isn't jutting out and restricting the middle terra cotta pot from sitting nicely in the hole. do not go all the way through with the paddle bit—you only need to drill in about 1/4" or so. After the divot was created on the inside of the middle hole, I took a 3/16" drill bit and pre-drilled a hole through the back of the shelf (make sure it's on the back side of the divot you created). next, I manually tightened the screw into the middle hole from the inside, just enough that my right angle attachment would be able to fit in order to mount the shelf to the wall. lastly, I used my right angle attachment to drive the screw into a stud in the wall by Bree's vanity mirror. I'm not sure how else to do this without a right angle attachment—that little gadget was a game changer! Here is a final shot of the shelf with the terra cotta pots in it all nice and pretty. I know the shelf is a little closer to the shower
than the vanity (not centered) but I was forced to mount the shelf this way because I had to mount it in a stud. To go with Bree's bathroom colors, I decided to paint the outside of the pots with a pretty blue/grey color I had on hand for another project—the color is called "French Colony" and I think it really tied the shelf organization shelf with the rest of the bathroom. now Brianna has a cute little place to store her beauty essentials so that her vanity stays nice and clean, free of clutter. She can also easily remove the pots if need be.
Materials I used for this project: 5/4x8' common board 3 (4") terra cotta pots dewalt 20v max drill (on hand) 2 1/2" Timberlok screw 3/4" paddle bit (on hand) 3/16" drill bit (on hand) 3 5/8" hole saw (on hand) Countersink drill bit (on hand) dewalt Right Angle Attachment (on hand) Measuring tape (on hand) 1" angled trim paint brush (on hand) Behr premium plus Interior Semi-Gloss enamel ultra pure White paint & primer in one (on hand) Fine grit sandpaper (on hand) dewalt miter saw (on hand) Behr premium plus ultra Interior Satin enamel Stain-Blocking paint & primer in one (color: French Colony) Citing Source: Rob and Courtney are a husband and wife duo, and in-house creators for the Hometalk project team. They love working together to create any and everything, from home décor to furniture primarily made from reclaimed materials. http://www.hometalk.com/26770060/floating-terra-cotta-pot-shelf-bathroom-organization CasaGuam.com 19
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Your World, Our Island
Conserving Energy By Eric M. Palacios one of the most overlooked aspects of owning a home is conserving energy. You have likely heard or read many times about all of the different things that you can do to reduce energy costs. Well, this article will be no different, but I will provide real-world numbers from my household and give you tips that are I hope are new to you. First off, we are a family of seven and our average monthly power bill is $230. Would I like to see this amount be reduced even further? Absolutely! But, it’s not too bad considering we utilize three airconditioners, a washer and dryer, two refrigerators, multiple television sets and other items that require electricity on a dAIlY basis. Here are things that we’ve done, which I hope you will consider: Keep your rooftop conditioned. I cannot stress enough how big of a difference you’ll see in your power bill, as well as how much more comfortable the inside of your home will feel. pressure washing your rooftop at least twice a year will go a long way towards saving you money. You can get by with having it done once a year if you add a good coat of reflective paint. White works best. Keep your windows shaded. You can achieve this by getting it tinted or doubling up with blinds and curtains. Only use energy-efficient light bulbs. When used inside and around your home, you can expect to see a reduction of at least $20 each month. For best results, go with “daylight” bulbs — they are brighter at the same wattage. Invest in a solar water heater. It’s a bit pricey, depending on the model you buy, but it will be money well spent. We don’t have a water heater at home, but our power bill went down by $110 the first billing cycle after we got rid of ours. It has remained consistent since. Buy high SEER air conditioners. SeeR stands for ‘Seasonal energy efficiency Ratio’ and the higher this number, the more efficient the unit will be. Your savings will depend on how many units you run and the size of the units. If you did nothing else but change out one non- or low-SeeR unit with an 18-seer unit, you will probably save about $15 a month. Seal the bottoms of doors. This works two ways. First, hot air is not entering your home and, second, cool air is not
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escaping. Replace the rubber seals on both the bottom rail and the threshold. Do not turn on your air conditioners during peak heat hours. If you run your units 24/7, this will not affect you. But if you turn them on at certain times of the day, it’s best to do so in the morning or early evening. For quicker cooling, run an electric fan at the same time. You will achieve the desired temperature much quicker. Incorporate foam insulation when building a new home. This could drive up costs, but the long term financial and comfort benefits will be worth it. Indoor plants. Your home will look and feel fresher. Some indoor plants reduce the ambient temperature and also absorb some irritants in the air. Win-win. Reduce consumption. This tried-and-true method always works. You can monitor your usage online at: www.myenergyonline.com to see real-time energy consumption. About the Author: Eric M. Palacios is the former administrator for the Guam Environmental Protection Agency. He currently serves as Gov. Eddie Calvo’s special assistant for education and the environment.
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Curb Appeal
Curb Appeal with a Touch of Gold By Sarah Egge
D
Decorating with Gold With the resurgence of 1970s culture in fashion, movies, and music, and with our recent olympic fever, is it any wonder gold is trending in home design? The tony metal is appearing in wallpaper patterns, as painted coatings on wood and metal furniture, as eye-catching accessories, and in fabrics and upholstery. using gold in home design goes back as far as ancient egypt, and it appears in every period and style through the ages since. A truly cameleonlike accent, it can appear aged and traditional on the gilded frame around a Victorian oil painting, or sleek and contemporary on the rim of a midcentury martini glass. Today's use of gold pulls from all the eras. What makes it notable is the mixing of periods -- Victorian with midcentury - into a uniquely of-the-moment look.
Style Notes It is often said that gold is a "warm" metal, due to its yellow cast. Any hue in the red, orange, and yellow range is considered a warm color because it evokes the flames in your fireplace and has a resulting cozy feel. Gold is also a rich hue because it was once used to show that a homeowner was of wealthy status and that he or she could afford the rare and exotic, such as a gold-leafed ceiling or gilded birdcage. And finally, gold has an elegance that comes from its use through the ages in beautiful jewelry. Adding gold handles to a chest is like dressing up an outfit with a gold necklace. As a precious metal, it's used to set off gemstones of every hue, and in a home setting it works with all colors of the rainbow.
3 Ways to Decorate with Gold 1. Make a statement. Gold has impact on a room, so you can really create a "wow" moment with very little effort. use goldpattern wallpaper on one wall in an entry. place a gold-covered pillow in the mix on your sofa. paint a side table with gold paint to perk up your bedroom. 2. Mix it in. Gold is the tool to create a truly eclectic look. Hang a gilded antique mirror in a wall arrangement with collected and modern art pieces to add patina and pedigree. or wheel a contemporary gold-and-glass bar table into a traditionally decked out study to bring levity to a somber space. 22 CasaGuam Februar y 2017
3. Use it like jewelry. It can dress up a dull or hardworking space, and provide something unexpectedly beautiful. Think of a small desk lamp in your home office or a gold hook to hold your towel by the shower.
Where to Find It As hot as this trend is right now, nearly every retail source has gold-patterned fabrics and wallpapers, gold-accented furniture, gold-leafed lamp bases and chandeliers, and decorative accessories coated in gold. You can shop flea markets and thrift stores for vintage pieces like gold-painted picture frames or 1970s barware that won't break the bank. or, you can go the dIY route: dip the legs of your coffee table in gold paint, stick a metallic gold decal to your dining room wall, or iron a gold-fabric monogram onto a pillow for your bed. Citing Source: http://www.bhg.com/decorating/lessons/expert-advice/decorating-with-gold/
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W h o Ya G o n n a C a l l ?
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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!
Ordot-Chalan Pago
Chalan Pago
Peaceful and serene 4BD/2BA home. 1,922+/-sf of living space. Upgrade master suite. 3-car covered car port. Call Suzanne @ 482-6426.
Pago Bay, Newly Built Home for Sale by Developer. Starting from $525,000. New subdivision, 2 story home, high ceilings, 3BD/3BA, 2 living rooms, dining room.
Piti
Ocean & mountain views.
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.
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.
Dededo
Agat
3BD/2BA home. Fully fenced. Price reduced. $305K. Call Ellen’s Realty at 647-0888 for more details!
14,221 SqMtrs. Fairly level. $711,050. Call 649-2121 for more details.
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
Sinajana 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.
Merizo
4BD/3BA upgraded home. Fully fenced. Minutes away from Naval Station. $310K. Call Lolita at 479-8891 or 688-6743.
Almost one acre lot ready for farming or dream home in quiet but lush area. $44K. Call Flora @ 727-2955.
Ordot-Chalan Pago
Talofofo Large 3BD/3BA home. Includes 25K generator, 650 gal water tank. $360K. Call Dennis at 727-3815.
880+/- square meter land in a great central location and immediately available to build. Quiet neighborhood but close to central shopping and business areas. $65K. Call Flora @ 727-2955.
Tamuning
Piti
Tamuning House For Sale 5bd & 3ba with granite kitchen island and countertops, crown molding, ceramic tiled floors, jacuzzi style tub, typhoon shutters and much more! Located in the heart of Tamuning walking distance from GPO/Applebee's/Yogurtland &IHOP. For sale by owner. Serious buyers only. Text/Call 727-6456
24,173+/- square meter lot with partial ocean view for agriculture or developers. Close to Harbor, Port Authority & Naval Base. $846,055. Negotiable.
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.
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 649-8265 or 727-8265
Agana Heights
Santa Rita
Tamuning 4BD/2BA centrally located home for rent, along Carlos Heights. Tumon is closeby. Call Lolita @ 688-6743 or 479-8891 for more details.
Land for Sale
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..
Oka Tower Condo. 2BD/2BA 1st floor unit. Superb amenities. $298K. Call Sandy at 687-6006.
Tumon Tumon Condo. 3BD/2BA. Great location close to restaurants, shopping areas, and minutes away from beaches. Grea investment. $150K. Call Karen @ 988-1883.
Call Flora @ 727-2955.
Talofofo 929+/- square meter land for sale. Quarter acre lot, rectangular in shape. $57,400. Call Lolita @ 688-6743 or 479-8891 for more details.
Yigo 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.
Yigo
Yona
Wonderful 2BD/2.5BA home. 1,714 +/- sf living space. Fully fenced. $321K. Call Suzanne at 482-6426.
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 Maria E. Miller 2017 President Guam Association of REALTORS®
Message from the Chief executive officer and Government Affairs director Peggy Araullo Llagas Guam Association of REALTORS®
RENT OR BUY??
REALTORS® Pledge of Performance and Service: Part 2
purchasing a home is one of the largest investments a person can make in their lifetime. Homeownership offers value, stability, tax benefits, helps towards building a future nest egg, and so much more. owning a home is the American dream. even with all the benefits of homeownership many people continue to rent because they do not realize they can afford to invest in their own home. As rent prices continue to rise in Guam, you do not want to get priced out of the market. Invest the time in yourself to see if you can buy a home.
ReAlToRS® are subject to disciplinary action and sanctions if they violate the duties imposed by the Code of ethics. do not hesitate to ask a ReAlToR® for a copy of the Code, including the Standards of practice. The Code is your assurance of dealing with a professional who has your best interests in mind. The Code of ethics consists of 17 Articles and related Standards of practice. The basic principles of the Code are summarized here.
BUT - I can’t afford the down payment!” It surprises me how many people don’t even want to try because they honestly don’t believe they can afford a down payment! did you know you may have other options? The uSdA offers a “0” down loan if you qualify – (you cannot make too much money). The VA offers “0” down loan for Veterans who are in service or have been honorably discharged – and it is not a one-TIMe opportunity. Fannie Mae and Freddie Mac offer loans with as little as 3% down or 5%, 10% down with mortgage insurance and so forth. In many cases, your monthly mortgage payment can be close to what you are paying in rent, if not less – especially when you can tax deduct your interest payment and property taxes! And remember, you do not have to start out purchasing your dream home either. Start with what is affordable, build equity, and work your way up to your dream home. Better yet, turn your affordable purchase into your dream home by doing the work yourself a little bit at a time – something you cannot do on a rental. even if you are not ready to buy today, start preparing and saving today. estimate what your monthly payment would be and save the difference – this will help you save for the down payment too! Start monitoring your credit. Transfer your credit card balances to 0% transfer options – pay them off. pick up a part time job. Sell some stuff. There are so many ways - if you really want it, you will work hard for it. Your favorite ReAlToR® can walk you through your options. Make 2017 your year of homeownership!
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 Februar y 2017
Duties to the Public (continued from last month). Article 10 ReAlToRS® give equal professional service to all clients and
customers irrespective of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. ReAlToRS® do not discriminate in their employment practices. Article 11 ReAlToRS® are knowledgeable and competent in the fields of practice in which they engage or they get assistance from a knowledgeable professional, or disclose any lack of expertise to their client. Article 12 ReAlToRS® are honest and truthful in their communications and present a true picture in their advertising, marketing, and in other public representations. Article 13 ReAlToRS® do not engage in the unauthorized practice of law. Article 14 ReAlToRS® willingly participate in ethics investigations and enforcement actions. Duties to REALTORS® Article 15 ReAlToRS® make only truthful, not misleading, comments about other real estate professionals. Article 16 ReAlToRS® respect the exclusive representation or exclusive brokerage relationship agreements that other ReAlToRS® have with their clients. Article 17 ReAlToRS® arbitrate and mediate financial disagreements with other ReAlToRS® and with their clients.
- national Association of ReAlToRS® -
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