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CONTENTS
Let ter from the Editor Letter from the Editor
Departments 4
Market Report 2016 Kick Off
8
10
Feature Loan Programs
12
Real Estate Spotlight Marriage and Property
14
Profile Coleen Blas Passionate About Helping Others
April 2016 • Vol. 9 • No. 04 P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: office@yellowpagesink.com
[ Publisher ] [ Business Sales Manager ] Jay-R S. Dominguez
[ Editor ] Arlene Taitague Taitingfong
16
From the Experts Fee Simple vs Leasehold Ownership
[ Display Advertising ] John Mendiola Doris Pangelinan Emily Untalan
[ Traffic/Circulation ] Carol Aperocho
18
How to D.I.Y. 3 Costly Mistakes of First-Time Home Buyers
[ Production Manager ] Mark S. Burke
[ Graphics & Layout ] Mark S. Burke Edwin E. Valencia
22
Curb Appeal
[ Website Development ]
The Joys of
Edwin E. Valencia
Condominium Ownership
25
Who Ya Gonna Call?
27
Classifieds
28
Closing
[ Editorial Contributors ] Ray Llaneta Mary Guerrero Joylyn Muñoz Kimberly Palmer Arlene Taitague Taitingfong Diane Tuman Kim Anderson Young
Arlene Taitague Taitingfong
Hafa adai readers! Welcome to our Homebuyers’ Guide: Condominium Issue. There are lots of interesting topics that are covered this month. I hope you enjoy them. Our FEATURE article is written by Mary Guerrero, Loan Administrator at Guam Housing Corporation. She explains the many loan programs available to our island residents, many of which can assist first time homebuyers. It is an article with loads of information! You might find one that you qualify for! Our PROFILE is on Coleen Blas who is a REALTOR® with RE/MAX Diamond Realty. She is a bright, young woman with the passion for helping people. Find out what makes her successful in the real estate industry. If you are in the market to buy a condo, check out FROM THE EXPERTS to find out what the differences are between fee simple and leasehold ownership. This is something you will want to pay attention to when you start shopping around for any piece of property. Rey Llaneta writes about “The Joy of Condominium Ownership” in CURB APPEAL. Follow him as he candidly recounts his journey into condo ownership. Welcome Joylyn Muñoz to the MARKET REPORT team. Read her report and on what went on in the 1st Quarter of 2016. Kim Anderson’s “Marriage & Property” in REAL ESTATE SPOTLIGHT, focuses on…well, property and marriage. It’s a fun read with a few lessons on thoroughness. GAR President, Deanna Palmer, discusses homeownership, interests rates, and property values increasing. Peggy Illagas, CEO and Government Affairs Director of GAR, has a few things to say about fair housing issues. I hope you enjoy this issue!
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 All information in Market Research is provided by Joylyn Munoz, Principal Broker, Absolute Realty
Tel: (671) 488-5069 joylyn.munoz@absoluterealtyguam.com Joylyn Munoz
Thinking of selling? Get a FREE market analysis for current value of your home. Thinking of buying? Call us, it’s FREE, we have access to all property listings.
2016 Kick Off id you know that in 1976 a home located in Barrigada Heights would cost you $55,000.00? In today’s market, that same home would cost you an average sale price of $365,000.00 and perhaps even more. Considering all the challenges, Guam’s real estate industry continues to thrive and grow. Guam’s real estate market is off to a great start. As of March 2016 Year to date, Guam’s market generated a total of $29,602,969.00 in total sales volume, which is a 5% increase compared to year to date of March 2015. Average sale price for Single Family homes has also increased 19.75% and continues to increase compared to February 2015 bringing the average price of a single family home to $303,886.00. New listings for singlefamily homes have decreased compared to last year creating a demand for inventory. A newly built single family executive home consisting of 3641 square feet, 4 bedrooms, and 3 baths located in the village of Mangilao made it to the top as the recent and highest sale closing at $600,000.00 as of March 19, 2016. Average days on market compared to Feb. 2015 for a single family home has also increased bringing it from 164 to 189 days. This is partly due to the new federal RESPA laws designed to protect the consumer. Average sales price for Condos and Townhomes have also increased 47% compared to Feb 2015 bringing the average sale price of a unit from $162,289.00 to $239,333.00. A contributing factor is due to the increase in foreign investment most especially from Taiwan investors. Average days on market have also increased compared to last year from 100 days to 130 days. The highest and most recent Condo sale, which closed on February 2016 was Villa Kanton Tasi. This 2,350 square foot executive condo located in Tumon with panoramic ocean view sealed the deal closing at $1,300,000.00. Overall, The increase in growth and the average sales price for homes and condos on Guam is great for the industry, but it may be a concern for buyers…most especially first time homebuyers. Although the average sales prices of homes continue to grow, it would still be a good idea to purchase especially since current mortgage rates are still very low and competitive. If you haven’t considered purchasing real estate, kick off the year and visit your local banking institution. They would be willing to inform you of how much you qualify for. Or you can call your favorite REALTOR® you trust…they would be sure to guide you from beginning to end.
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Market Repor t
Market Snapshot 2015/2016 Comparison Statistics Condominium/Townhomes Closed Sales Average Sales Price: Average Days on Market: Condominium/Townhomes Closed Rental Average Rental Price: Average Days on Market: Single Family Closed Sales Average Sales Price: Average Days on Market: Single Family Closed Rental Average Rental Price: Average Days on Market:
February 2015
February 2016
$162,289
$293,333
100
130
February 2015
February 2016
$1,409
$1609
60
130
February 2015
February 2016
$253,762
$303,886
164 February 2015
47.47%
1.67%
19.75%
130 February 2016
$2345
2397
53
55
11.11%
The information contained in this market report is a subset of data from the Guam Multiple Listing Service.
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Feature
First-Time Homebuyer’s Loan Programs
By Mary Guerrero
re you a first-time homebuyer? Do you think you’re ready for homeownership, but just need some financial assistance to seal the deal? Well, if you are, Guam Housing Corporation (GHC) may be able to assist you in your efforts to realize homeownership. Guam Housing Corporation is a government agency, mandated to provide financial assistance to individuals and families who are unable to obtain financial assistance through conventional means. Over the years, however; other housing activities have been included in its mandate to provide down payment and closing cost assistance to first time homeowners. GHC administers several programs including two programs that assist with down payment and closing cost. These programs are briefly explained below in hopes to help you determine which program will be best suited for your financing needs. As such, we invite you to our home so together you can achieve your dream to own your home.
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I. Regular Loan Programs Residential mortgage lending program, to assist families and individuals, who are first time homeowners and are unable to obtain financing for purchase or construction through conventional lending institutions. Interest rate – Prevailing Rate for a term of 15 years up to 30 years. Eligibility Criteria: 1. U.S. Citizen or permanent alien resident 2. Resident of the territory 3. Minimum occupancy requirement two (2) years 4. Must have a written denial from a financial institution Qualifying Criteria: 1. Permanent employment (2 yrs employment) 2. Acceptable credit 3. Maximum Income to Housing expense Ratio 29% 4. Maximum Debt to Income (including housing expense) 41% Collateral Criteria: 1. Maximum loan-to-value ratio 80% (1st Mortgage) 2. Improvement must be insurable with all perils 3. Detached single family dwelling 4. Town House and Condominiums acceptable upon review and common area fees must be included in housing expense calculations 8 CasaGuam April 2016
Maximum Loan Amount: Increased to FHA current maximum loan limit. Public Law 22-113 authorizes GHC to adjust its loan limits using the FHA maximum loan amounts as established. Funding Source: 1. Generally funded through revenues generated by operations 2. GHC has utilized borrowed funds from financial institutions and the retirement fund 3. GHC has obtained approval as a non-member borrower from the Federal Home Loan Bank of Seattle
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Feature II. Six Percent Loan Program Low interest rate residential mortgage loan program, to assist families and individuals who are first time homeowners and are unable to obtain financing from conventional mortgage lending institutions. Interest rate is 6.00% for term of 30 years. Eligibility Criteria: 1. U.S. Citizen or permanent alien resident 2. Resident of the territory 3. Minimum occupancy requirement two (2) years 4. Must have a written denial from a financial institution 5. Applicant must be a first-time homeowner Qualifying Criteria: 1. Permanent employment (2 yrs employment) 2. Acceptable credit 3. Maximum Income to Housing expense Ratio 29% 4. Maximum Debt to Income (including housing expense) 41% Maximum Loan Amount: Increased to FHA current maximum loan limit. Public Law 22-113 authorizes GHC to adjust its loan limits using the FHA maximum loan amount as established by HUD.
III. Community Affordable Housing Action Trust (CAHAT) An interest free second mortgage designed as a down payment assistance program for first time homeowners for families and individuals who lack the down payment resources to purchase or construct a typhoon resistant home. Enabling Legislation Public Law 21-99. Term of the loan is 30 years. Eligibility Criteria: 1. U.S. Citizen or permanent alien resident 2. Resident of the territory for at least five (5) years 3. Minimum occupancy requirements five (5) years 4. Must be able to obtain financing from a participation financial institution 5. Applicant must be a first time homeowner Qualifying Criteria: 6. Permanent employment 7. Acceptable credit 8. Maximum Income to Housing expense Ratio 29% 9. Maximum Debt to Income (including housing expense) 41 % to include 1st and 2nd Mortgage payments Collateral Criteria: 1. Maximum loan-to-value ratio 95% (1st Mortgage and 2nd Mortgage payments) 2. Improvements must be insurable with all perils 3. Detached single family dwelling 4. Town home and condominiums acceptable upon review and common area fees must be included in housing expense calculations
Maximum Loan Amount: 1. The maximum interest free 2nd Mortgage amount is $40,000.00 2. The first Mortgage maximum amount is determined by the participating institution based on the borrower’s ability
IV. Leverage Loan Program Rural Housing Loan Program • Provide loans to assist eligible persons who will live in rural areas with an opportunity to own a home that would provide a decent, safe and sanitary living environment for its occupants. • Joint financing with Rural Development for a 100% financing with low interest rates. Term of loan is 33 – 38 years for RD financing. Construction of dwelling on Chamorro Land Trust property is also eligible (Dededo properties are ineligible under this program) Eligibility Criteria: 1. A person who does not own a dwelling, or owns a dwelling which is not structurally sound or functionally adequate. 2. Be without sufficient financial resources and unable to secure necessary credit elsewhere to meet housing needs. 3. Must be a U.S. citizen or permanent resident alien 4. Possess the legal capacity to incur the loan obligation 5. Will personally occupy the home on permanent basis. 6. Acceptable Credit History 7. Adequate and Dependable income sufficient to meet the following income to debt qualifying ratios: • Low income not to exceed PITI 33%; TD – 41% • Very Low income not to exceed PITI-29%; TD – 41% 8. Adjusted annual income not exceeding the applicable Low Income Limits. (Continued on page 20) CasaGuam.com 9
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On The Cover
Move to Canada (Barrigada) rand New! Beautiful home located in Cañada, Barrigada. 4 Bedrooms, 3Bath, 2-Car, enclosed garage, a large kitchen with attached laundry room, large master suite, junior suite with its own bathroom. Spaciours living and dining room space. Nice big gated yard. Close to schools, stores and near Route 8. You should see this house! Call for a showing today!
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4 Bedroom, 3 Bath Home Located in Barrigada 2000 Sq Ft • 2194 Sq Mt
Asking $465,000
MLS #15-3690
Saran Sachdev
REALTOR®
Office: 300-8143 • Mobile: 686-7233 • Email: saran.sachdev@remaxguam.com 10 CasaGuam April 2016
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Real Estate Spotlight
Marriage and Property By Kim Anderson Young Are you married? Seems like a fairly straightforward question, doesn’t it? However, in the real estate industry (and in Guam’s abundantly rich cultural environment), it’s actually a bit more complicated than a simple yes or no. Seven years ago, we closed a transaction where a couple from mainland China were purchasing a residence on Guam. The house was to be held in Mr. Young’s name alone. When the escrow officer asked if they were married, the woman replied “Yes.” The man signed an affidavit of transferee stating that he was married to “Jane Chow.” Just recently the gentleman decided to sell the house. When we indicated that his wife would need to accompany him to the US Consulate in China to sign a spousal consent, he replied that he had never been married. When we asked about “Jane Chow,” he said he had been very much in love with her at the time and planned on marrying her, but it didn’t work out. He also added that at the time that they were visiting Guam, she was still legally married to another man. So, her response was technically correct! In a perfect world, we would have followed up our first question with “To each other?” Live and learn! We were fortunate enough to track Ms. Chow down in China and she signed a quitclaim deed to Mr. Young, creating a happily ever after to our story. Interestingly enough, we have encountered this same scenario four or five times over the course of the last twelve years. I guess our tropical paradise just brings out the romantic nature in people! We have also encountered the question of whether a person who is legally separated on the mainland is still considered married on Guam. The answer to that question is yes. On Guam, you are either married and subject to community property laws, or you are completely divorced/unmarried. And now, since Guam law recognizes same sex marriage, our gay and lesbian friends can hold title as community property to protect joint assets. So the next time your real estate agent, banker or escrow officer asks in detail about your marital status, give them the full story. They have heard just about everything, and it may just save you from having to share your sale proceeds with some guy or gal you used to love! 12 CasaGuam April 2016
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
Blas Passionate About Helping Others
By Arlene Taitague Taitingfong
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Coleen Blas REALTOR®, MRP, Awarded Re/Max 100% Club For 2015 RE/MAX DIAMOND REALTY
From there, everything else should fall into place.” Blas uses CasaGuam magazine as one of her venues for advertising. “CasaGuam is informative for anyone looking to rent, buy or place their property on the market. I like that it is geared specifically towards real estate and business.” She also shared that the articles help her stay current with the market. In her spare time, Blas loves to travel and spend time with family.
CasaGuam is informative for anyone looking to rent, buy or place their property on the market. I like that it is geared specifically towards real estate and business.
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There is a saying that an acorn does not fall too far from the tree. Can this be the case with Coleen Blas? She has been exposed to the real estate industry early in her life through her successful mother and real estate broker, Liz Duenas. Additionally, she was further influenced by her siblings, Josh Duenas and Jodee Duenas, both REALTORS®. It’s no wonder that this line of work was inviting to her. “The choice was easy,” she said. “My mom told me that she believed that I would enjoy it as much as she did!” I first met Blas in the lobby of the RE/MAX Diamond Realty office. She is a very bright young woman with a very appealing personality and is easy to talk to. She shared that prior to joining RE/MAX Diamond Realty in 2004, she worked at Duenas & Associates. She handled administration and accounting duties for eight years. This experience set her up with a strong administrative background. This, coupled with her sense of creativity, has given Blas opportunities to demonstrate a high quality of service her clients have come to know. It has been expressed by the professionals in the real estate industry that one needs to possess good communication skills, good listening ability, and have a whole lot of patience to be successful. Blas has these attributes and more. She describes herself as a very caring person by nature. “I am passionate about helping others. Real estate has really allowed me to do that by helping my clients.” Her career is never dull and her days are always different. She shares an example. “I can be sitting at my desk in the morning, then showing an ocean view condo before lunch. By early afternoon, I’m walking in a jungle to locate survey points, and at the end of the day near sunset, I’m shaking my customers’ hand, congratulating them because they just bought their first home.” For anyone interested in this line of work, Blas shares this advice. “Focus more on the service you are providing than the sale. Listen to what your clients’ needs are, and be creative with how to get them to homeownership.” She further explains the nature of the business. “It is a bit scary in the beginning, especially being that this is a commission-based business only. But if you focus on the person or family achieving their goal, you will achieve your goal in the end as well. It is important that the people you work with know that you care more about them than the bottom line.
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From the Experts
Fee Simple vs Leasehold Ownership By Diane Tuman; www.zillo.com Editor’s note: If you are in the market to buy a condominium, check to see if the form of ownership is fee simple or leasehold. It may be the deciding factor in your purchase. Read on to learn more.
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Most people only know of one type of real estate ownership; fee simple, also known as freehold. There are a handful of states that have another form of ownership known as leasehold. The difference in these two types of land tenure is very different and affects the value of the real estate. It is important to know the difference, especially if you're buying real estate in a leasehold state (i.e. Hawaii, New York, Florida).
What is the difference between leasehold and fee simple? FEE SIMPLE: Fee simple ownership is probably the most familiar form of ownership to buyers of residential real estate. Depending on where you are from, you may not know of any other way to own real estate. Fee simple is sometimes called fee simple absolute because it is the most complete form of ownership. A fee simple buyer is given title (ownership) of the property, which includes the land and any improvements to the land in perpetuity. Aside from a few exceptions, no one can legally take that real estate from an owner with fee simple title. The fee simple owner has the right to possess, use the land and dispose of the land as he wishes--sell it, give it away, trade it for other things, lease it to others, or pass it to others upon death. LEASEHOLD: A leasehold interest is created when a fee simple land-owner (Lessor) enters into an agreement or contract called a ground lease with a person or entity (Lessee). A Lessee gives compensation to the Lessor for the rights of use and enjoyment of the land much as one buys fee simple rights; however, the leasehold interest differs from the fee simple interest in several important respects. First, the buyer of leasehold real estate does not own the land; they only have a right to use the land for a pre-determined amount of time. Second, if leasehold real estate is transfered to a new owner, use of the land is limited to the remaining years covered by the original lease. At the end of the pre-determined period, the land reverts back to the Lessor, and is called reversion. Depending on the provisions of any surrender clause in the lease, the buildings and other improvements on the land may also revert to the lessor. Finally, the use, maintenance, and alteration of the leased premises are subject to any restrictions contained in the lease. 16 CasaGuam April 2016
Important Leasehold terms to know: • Lease Term - The length of the lease period (usually 55 years or more) • Lease Rent - The amount of rent paid to the Lessor for use of the land • Fixed Period - The period in which the lease rent amount is fixed • Renegotiation Date - Date after the fixed period that the lease rent is renegotiated • Expiration Date - The date that the lease ends • Reversion - The act of giving back the property to the Lessor • Surrender - Terms of the reversion • Leased Fee Interest - An amount a Lessor will accept to convey fee simple ownership
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H o w To D . I . Y.
Three Costly Mistakes of First-Time Home Buyers By Kimberly Palmer: www.usnews.com As an HGTV-addict, I sometimes want to shout at the featured homebuyers on shows such as Property Virgins and even Selling New York, which caters to a wealthy clientele. Ignore the light fixtures, they can be easily replaced! Don’t pay any attention to the paint color, you can fix it in an afternoon! Listen to your home inspector when he says that water damage could indicate serious problems! Homebuyers, especially those with little experience, are prone to making all kinds of mistakes, from ignoring catastrophic problems (water damage) and obsessing about details that barely matter (wallpaper). Today, with low housing prices in many areas and equally tempting interest rates, more newbies are being lured into the market. A recent survey by market research firm Mintel found that first-time buyers now make up 45 percent of the market, up from 34 percent in 2007. But are they equipped to make the right choices? Here are three classic mistakes they make: 1) Being turned off by problems that are easily fixed. According to a recent survey by Coldwell Banker, almost nine in ten first-time buyers are looking for move-in ready homes. They don’t want to have to fix the kitchen or redo the bathroom before settling in. They also want to live near shops, their work, and “highly-rated” schools. While location isn’t negotiable, many smaller fixes are, such as a dirty carpet or scratched up hardwood floor. Jane Hodges, author of the forthcoming book Rent Versus Own (Chronicle Books, 2012), was concerned about cracks in the plaster of her first home, but she later found it was just a cosmetic blemish that could easily be painted over. Hodges suggests asking your real estate agent for help understanding how costly fixes will be, and to grill the home inspector, as well. “Buyers sometimes focus on things like carpet, but that’s really a renters’ mentality. They forget you can make all these changes,” she says.
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The buyer-friendly market means that many first-time buyers can satisfy their high standards. Most participants in the Coldwell Banker survey found that they could buy a home sooner than they expected, and at a better price than they expected. Four in ten got more space and half scored a neighborhood that exceeded their expectations. The lesson: High standards can work to your advantage, but don’t forget that some fixes are relatively easy (and cheap), such as cosmetic makeovers. 2) Overlooking hidden costs. In addition to the down payment and subsequent regular mortgage payments, home ownership also brings a slew of other expenses, from closing costs to appliance maintenance to homeowners insurance. That’s why Hodges warns against doing a simple comparison of monthly rental payments versus mortgage payments. Home maintenance typically costs one to three percent of the purchase price, which is as much as $9,000 a year on a $300,000 home. “If your motivator is that rent is going up, you need to think about the actual operating costs,” says Hodges. “Homes might not be as cheap as they look,” she adds, especially if you buy a distressed property that hasn’t been well-cared for in recent years. The lesson: Leave plenty of room in your budget to absorb the extra expenses of homeownership. That usually means borrowing far less than the bank approves, and taking expected income fluctuations into account, as well. 3) Failing to budget for DIY-projects. Not so long ago, DIY television shows and Home Depot ads lent an air of romance to giving your home a little TLC. But more recently, the art of fixing up houses has fallen out of favor. According to Mintel, the DIY (do-it-yourself ) home improvement market has fallen 21 percent in the last 10 years. The reason appears to be financial. While about one in four would-be-DIYers say they want to start on a major renovation, they simply can’t afford it right now. The lesson: When purchasing a home, reserve some cash for needed DIY projects during the first year of home ownership. Since there are bound to be plenty of unexpected costs during that first year of home ownership, padding your budget can prevent late-night panic attacks when the dishwasher starts leaking all over your new floor. About the Author: Kimberly Palmer (@alphaconsumer) is the author of the new book Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.
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(Continued from page 9) For now, GHC has been requested to provide the programs we can assist a first time homeowner relative to down payment and closing costs. The two programs are the Community Affordable Housing Action Trust (CAHAT) and the First- time Homeowners Assistance Program (FTHAP). The Community Affordable Housing Action Trust loan program is an interest free second mortgage program designed as a program to assist first-time homeowner(s) for their down payment needs in order to obtain their financing. This program authorized through Public Law 21-99 allows GHC to provide a loan up to $40,000 with zero interest for a term up to thirty (30) years. As a result, an individual will be able to obtain two loans realizing 95% financing. This program, at its inception, assisted 105 individuals who have some resources but not enough to come up with a 20% down payment and the closing costs requirement. With the interest free concept, this will bring families the funding needed with a much lower monthly payment. The First-time Homebuyer Assistance Program (FTHAP) was established on June, 2012 through Public Law 31-166. In contrast with the CAHAT program, this program provides recipients up to $10,000 in the form of a grant. Most grants are income driven, however for this particular program it is a cost driven program. The total cost (price of the home and the closing costs) must not exceed $250,000. As explained above, individuals must be a first-time homeowner for five years preceding their application date. There were 394 individuals/families determined eligible and a total of 388 were issued a certificate of eligibility. As of March, 2016, a total of 362 were already disbursed and that many families are now homeowners. What is more interesting is this program alone has stimulated the economy by $63 million since 2012. It is unfortunate, however; that the funding source for this program has been committed and as a result GHC has a waiting list of eligible applicants. A total of 6 applicants currently wait for their Certificate of Eligibility. This can only happen if funds become available if there is a cancellation or if GHC receives additional funding. Guam Housing Corporation will continue its efforts to obtain a permanent source of funding for this program so more families can realize their dream of homeownership. For more information, you may contact our office at 647-4143 or visit our office located at 590 S. Marine Corps Drive, Suite 514 ITC Building, Tamuning or view our website at www.guamhousing.org.
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Curb Appeal
The Joys of Condominium Ownership
By Rey Llaneta
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I own a condominium. It is in the Philippines. I bought it almost three years ago. In the beginning, I did not like the idea of living in a condo. I own a house in Guam and I felt having a house with a yard was the best way to live. When a real estate agent asked me to see a condo project near my Philippine office, I blew her off but asked my wife to go instead and to “just take a look”. About three hours later, she came back excited and said, “I want the condo!” Instead of saying NO flat out, I asked to see it. When I did, I was sold immediately! Within a few days I reserved a unit - a 1 bedroom Luxuria brand condo behind EDSA Shangri La Hotel in Ortigas, Manila. Within a few months we paid for the full amount. Suddenly we were condo owners and my initial thoughts about condo ownership went out the window. My unit is comfortable, convenient, and I have no regrets buying it. I certainly made a wise decision and would recommend buying a condominium to all my friends. Here are a few reasons why buying a condominium is a good idea (whether on Guam or in the Philippines), as well as a few tips to note when looking to buy one.
Buying a condo is a good investment, whether you purchase it on Guam or abroad. Currently, the Philippines is experiencing a huge economic boom, propelled in part by real estate. With a gross domestic product (GDP) growth expected to be at the 6% range, year after year, it’s an obvious reason. I travel monthly to Manila. Previous to purchasing a condo there, I stayed at hotels that range in price from $75-$150 a night. Ouch! That really hurt my pocketbook, especially since most of the time I used the hotel room for maybe 6-8 hours only - just to sleep. Paying so much didn’t seem like a smart move, especially when there was no return on investment (ROI). I feel my money now goes into an investment that will grow over time. Oh wait! It already has! Essentially I am building equity (value) with the condo over the years, saving money, and making full use of it for free. If you seem to frequent a city or country abroad, whether it be for vacation or medical reasons, buying a condo is the best route to go. Location! Location! Location! Find a condo in a location you want to be in. Some like living near the beach. Others may like to be near the hospital or shopping malls. My condo is conveniently 22 CasaGuam April 2016
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Curb Appeal condo is well maintained! Everything is done for us. A full-time staff cleans the common areas, they take care of the yard, the swimming pool, the bathrooms, etc… everything! Security. There are many degrees of security that are offered by many different condo associations. Some may have automated gates, security personnel, surveillance cameras, well lit street lamps posted in every corner of the community, and then some. The important thing is you want to feel safe and secure. The condo I have posts guards 24/7. They question strangers, but once they know you live in the condo, they politely greet you and your guests. It’s a nice feeling to be greeted when I arrive or depart the building. Pricing. Condos are reasonably priced and may be more affordable than purchasing a home, in some instances. It’s a great way to downsize your living area, especially if the children are grown and have left the nest. I paid a fair price for my unit. It was within my budget and I can see an appreciation in value over the years. Condos are popular today because they are often within one’s budget. In this way, condos offer an opportunity to enter and live in a locale not otherwise affordable. For whatever reason you decide to buy a condo, it is important that you enjoy the unit, the amenities, and be in the location you want!
located behind SM Mega Mall, which is listed by Wikepedia as the 4th largest mall in the world (based on gross leasable area), and Mega Mall is only a 3 minute walk from my condo. In addition, my real estate office in BSA Twin Towers is only a 7 minute walk. I don’t have to deal with commuting or daily traffic! There are at least 5 major shopping complexes within a 10-minute walking radius. If I need medical care, Medical City is less than 10 minutes by cab. The best convenience is that my place is within walking distance to major transportation systems. Determine where you want to live and why. The amenities. Most condos have some kind of common area amenities. It may be a pool, a tennis court, a gym, or even a lobby area. Mine has many amenities such as a movie theater, music room, a very large swimming pool, card room, piano room with a baby grand piano, a function room, a fitness center, a separate men’s and women’s sauna, a jogging path, and free wifi. These amenities are better than a 4-Star hotel. Maintenance. Make sure you are knowledgable about the type of maintenance that is included in your common area fee. This may be a monthly or yearly fee that is paid to the homeowners association that is dedicated to the maintenance and upkeep of the common areas. This usually entails cleaning of the pool, landscaping, roof coating, and the like. These are matters that you, as an owner, do not have to handle or worry about. My
About the Author: Rey Llaneta is the broker/owner of RE/MAX Asyenda, the first RE/MAX in the Philippines. If you want to know more or need assistance on property ownership in the Philippines, contact him at rey.llaneta1@gmail.com or visit his website at www.remaxasyenda.com. CasaGuam.com 23
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W h o Ya G o n n a C a l l ?
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Classifieds Commercial Rentals
Piti
Chalan Pago
Land for Sale
Hagåtña
2BR, Ocean view! Across the beach! Close to Port, Naval Station, Polaris, & Stores. Max two tenants. $650 (Price does not include utilities) Call 649-8265 or 727-8265.
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. Ocean & mountain views.
Agana Heights 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.
Sinajana
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.
Commercial space for rent. 1,792 square feet. $3,500/month. Call Ellen’s Realty at 647-0888 for more details!
Tamuning 5 contiguous spaces available right on Guam’s busiest intersection! Highly visible, ample parking, backup generator.
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.
$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.
Merizo 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.
4BD/3BA upgraded home. Fully fenced. Minutes away from Naval Station. $310K. Call Lolita at 479-8891 or 688-6743.
Talofofo
Call Rowena at 483-4317.
Tumon
Residential Rentals Barrigada 4BD/2BAHome . Central living close to the airport, schools and shopping areas.
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.
$2,700/mo. Call Lolita at 479-8891 or 688-6743.
Tumon Horizon Condo - 2BD/1BA. Fully renovated & furnished. Water included. Call Weiwei @ 777-0688.
Dededo
Large 3BD/3BA home. Includes 25K generator, 650 gal water tank. $360K. Call Dennis at 727-3815.
Tamuning Oka Tower Condo. 2BD/2BA 1st floor unit. Superb amenities. $298K. Call Sandy at 687-6006.
3BD/2BA home for rent. $1,980/mo.
4BD/2BA Home. Peaceful and safe environment. Breezy and airy location. $1,500/mo. Call Lolita at 479-8891 or 688-6743.
Fully renovated. Fenced & gated. Call Loisa @ 727-6880.
Ordot-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.
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.
Piti 24,173+/- square meter lot with partial ocean view for agriculture or developers. Close to Harbor, Port Authority & Naval Base. $846,055. Negotiable. Call Flora @ 727-2955.
Talofofo
Yona
for more details!
Ordot-Chalan Pago
Tumon
5BD/5.5BA home. $4,800/mo. Call Ellen’s Realty @ 647-0888
1,184+/- square meter lot. Owner is motivated to sell! $20K. Call Flora @ 727-2955.
Tumon Condo. 3BD/2BA. Great location close to restaurants, shopping areas, and minutes away from beaches. Grea investment. $150K. Call Karen @ 988-1883.
Residential Sales
Yigo
Barrigada
3BD/2BA Home, gated, storm shutters, split A/C, backup generator. $195,000. Call 688-8276 or 653-5679.
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..
Wonderful 2BD/2.5BA home. 1,714 +/- sf living space. Fully fenced. $321K. Call Suzanne at 482-6426.
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.
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®
Last week, the available inventory of single family homes priced between $185,000 to $225,000 for the whole island was 45 homes. Of those 45 homes, 30 were under contract for purchase. This of course leaves only 15 homes in this affordable price range! The Principal and Interest payment for this price range, on a 30 year mortgage at 4.25% interest rate is approximately $910.09 to $1106.86 (Not including closing costs, property taxes or insurance). Let's say you are renting for $900-$1000 a month, every month, for 3 years. The total spent on rent is $32,400 to $36,000 of your hard earned money. It is rent, so you have a place to stay, but you do not own anything. When you purchase, in those same three years you are investing in a property which you gain equity in a major asset and you also will have the interest you paid on the mortgage payment as a deduction to reduce your taxable income each year. Most First Time Buyers are buying a "First Home" not their "Lifetime Home.” This is also true on Guam. With the number of people moving to and from Guam, we have a fairly consistent flow of people moving. Mortgage interest rates have not increased greatly yet, but they are expected to increase soon. A higher interest rate, will lower your the total amount you can borrow for a mortgage. The activity in the real estate market is getting busy. We are seeing prices and property values increasing. Start working with a REALTOR® soon and let them help you take full advantage of the ways you can purchase a home you can afford now. Save your tax return money for purchasing your first home.
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 April 2016
Message from the Chief Executive Officer and Government Affairs Director Peggy Araullo Llagas Guam Association of REALTORS®
Fair Housing: Staying Within the Law According to the National Association of REALTORS®, some behaviors might not strike consumers or real estate professionals as clear-cut violations of the federal Fair Housing Act, which prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and familial status. But HUD’s discrimination studies have found these common—yet often overlooked infractions that you should be attuned to. Here are ways to avoid overstepping the law: If you ask clients to obtain a prequalification letter from a lender before showing them homes, apply that standard to everyone. Even if clients promise they have the ability to purchase, don’t give them a pass, or a case could be made that you offer differing levels of service. Whatever processes you use for one client, use for all. Don’t write listing copy that makes a judgment about the type of buyer who would be most interested in the home. For example, saying a home is “perfect for joggers” could be seen as excluding people with certain disabilities. Describe the property as being located “next to a jogging trail” rather than the person it would appeal to. Let the clients bring up whether they want to live near certain amenities, such as houses of worship, cultural institutions, or playgrounds. Making the suggestion yourself could be considered “steering” clients toward certain neighborhoods—a definite violation. As a member of the Guam Association of REALTORS®, a commitment to equal treatment is part of the training of the Code of Ethics, and adhering to the fair housing rules is the law. Resist temptation to skirt around the subject matter by simply providing reliable resources for questions that clients ask. Be truthful about why you are unable to answer certain questions and at the same time, educate your clients about the fair housing laws and why it is irrelevant and possibly even illegal to offer your opinions on matters that deal with fair housing. Ask if your agent is a REALTOR®. A member of the Guam Association of REALTORS® who shall remain your leading advocate for promoting and protecting homeownership on Guam. Visit our website at www.guamrealtors.com.
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