Real Estate Journal - April 27, 2020

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APRIL 27, 2020 ISSUE | REJGUAM.COM 

PAGE 4

Home-buying trends

Housing market sees buying, renting differences among age groups The right stuff Preparing for a mortgage

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PAGE 8

The doctor is in Cleaning services

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PAGE 6

Problem prevention Improving your fix-it attitude

t INDEX NEED TO KNOW...............................................................3 THE RIGHT STUFF...........................................................4 PROBLEM PREVENTION................................................6 VILLAGES..........................................................................7 THE DOCTOR IS IN...........................................................8

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NEED TO KNOW | HOME-BUYING TRENDS

THE REAL ESTATE JOURNAL

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Home-buying trends From the perspective of a realtor, the homeb u y i n g market and its noticeable trends can be divided a m o n g the active Chris Felix generations who are either used to house hunting or just starting to save for one.

Christopher K. Felix, president and principal broker, and Dominique R. Felix, realtor and property administrator, both of Century 21 Realty Management Co. Inc., provided insight on home-buying trends and how each age group differs. The active generations in the home market are, based on the Pew Research Center breakdown: • Baby Boomers, born 1946-1964 • Generation X, born 1965-1980 • Millennials, born 1981-1996 A Baby Boomer and Millennial, respectively, the father-daughter duo provided unique perspectives on their client base and what they observed from them.

Question: Are there any noticeable differences between the generations when it comes to home inquiries?

Christopher Felix: Baby Boomer are usually more knowledgeable, and they know what they want and are looking for. They ask very few questions on banking or how

much down they need.

Generation X is also fairly

Dominique Felix

knowledgeable on knowing what price range they are looking for, but clients are more open to looking at alternatives. Millennials are harder to sell to. They have less in savings for down payments and have more loans, which means they have a harder time qualifying for house purchases. They have a tendency to want more than they can afford.

Dominique Felix: Having more experience working with Gen X and Millennials, the main distinction I can make is that Gen X definitely purchased homes before Millennials could even think of purchasing one. Putting economic factors aside and basing my knowledge on the conversations I’ve had, Gen X was raised on longterm goals: the American Dream of purchasing your own home, planting roots and providing for their families with little to no loans. Millennials grew up during the evolution of technology, which in turn shifted to more shortterm goals, such as traveling and experiencing new things.

Q: Can you give a breakdown

on what these generations think of buying versus renting? At this time, is one preferred over the other?

Christopher: Baby Boomers and Gen X focus on buying. Millennials focus more on the now and while they would like to own a home, they can pass on buying if they can rent something they like.

Dominique: Most of the Baby Boomers and Gen X prefer to buy and sell. However, those who still live paycheck to paycheck are only in the market to lease apartments or homes with smaller lots and minimal maintenance. Millennials prefer to rent on their own or with roommates, but those who have financial support from their families will absolutely purchase.

Q: When Baby Boomers and Gen X’ers were at the age of Millennials today, what was the housing market like for them?

Was it easier to buy a home during this time, or is it easier now?

Christopher: Actually, it was harder. Qualifying was tough and loan mortgage interest rates were higher. Back then, buyers needed 20% down while nowadays 5% to 10% is more normal. Interests rates are also lower these days. However, the focus of Baby Boomers and Generation X were on buying houses, and they had more savings and fewer loans.

Q: Are Millennials the top demographic in home buying?

Dominique: Millennials are still very much behind the other

generations. Most of my clients who have inquired about leasing and buying eventually decided to lease. Remember that this group is comprised of those with young children and those still in school, or still figuring out their career path.

However, the numbers are rising as more are settling down every day.

My main clientele is comprised of Gen X at the moment.

Q: Do these generations have varied preferences in the type of home they want?

Dominique: Absolutely. Baby Boomers are “empty nesters,” so they prefer to downsize to two- to three-bedroom homes and liquidate their assets, but some are still interested in smaller investments within a close proximity for easy management. Location is important to them as they want to live closer to families or even in a quieter neighborhood. Gen X is all about larger, updated homes with yards big enough for their kids to run around. Since they’re much more established than Millennials, their budgets are much higher, and they want to invest in a home that they can see themselves in for 10 or more years, even for the rest of their lives.

Most Millennials want what Gen X wants, but they just can’t have it.

So, they settle to lease for now or look into fixer uppers that they can invest in while living at home. Keep in mind that some have family land to inherit and build on, but the cost to build is another factor. p

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THE RIGHT STUFF | PREPARING FOR A MORTGAGE

THE REAL ESTATE JOURNAL

Start early in saving for a home Guam’s housing market has an array of homes to choose from, varying in size, cost, location and style. Prospective homeowners, especially the younger generations, should consider starting early to prepare for a mortgage.

Financial institutions are ready to help home hunters out in their pursuit for a new home, but there are plenty of proactive steps people can take to get a good start.

“Purchasing a home is not the same as buying any other item.

It is a huge step forward. Take into consideration your financial situation, such as cash flow, liabilities, savings, job stability and credit,” said Molly M.Q. Duenas, vice president and manager of residential lending at BankPacific.

Once a person is grounded in financial stability, they may seek advice from their preferred bank.

The institution can also provide an estimate of how much you may be able to borrow, Duenas said. To determine your financial standings,

the bank will need at least two recent pay stubs, tax returns from the past years and a verification of employment. Ideally, someone who is applying for a mortgage loan should not have a debt-toincome ratio exceeding 43%.

A good credit score is also a check on the list toward an approved loan.

Duenas recommended younger people establish credit tradelines for longer than two years, and set up multiple types of credit building, such as automobile loans. However, she advised not to overuse credit, and to only borrow what you can pay back on time.

Maintaining stable employment is a necessity in credit building.

Down payments and mortgage rates can be tricky to calculate for first-time homebuyers, but a good financial institution can coach you on what you can afford, or at least aim for.

“Down payments can vary depending on the loan program for which you qualify,” Duenas

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THE RIGHT STUFF | PREPARING FOR A MORTGAGE

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said. “There are a few first-time homebuyer programs that require as little as 3% down payment with the standard being 20%. You should also consider paying roughly 6% in closing costs in addition to your down payment.”

As for rates, an ideal range is around 3%, she added. However, a person’s credit standing and loanto value can make a difference in the rate they can qualify for.

Exactly how much one should save up is dependent on the cost of the home they want to purchase.

While that varies from person to person, a look at the national average of home purchases and mortgage loans can help calculate what you should save for.

The National Mortgage Database, a Federal Housing Finance Agency initiative representing a 5% sample of all residential mortgages in the United States, periodically surveys the home market for average statistics.

Its most recent dataset, from January to June 2019, showcased the following: • the average home purchase was $312,000; • the average loan amount was $255,950; • the average contract interest rate was 4.6%; • and the average loan applicant’s credit score was 730.

With all this in mind, it is important to understand that a mortgage payment is not a bill to run late on.

“Best practice should be to always have a minimum of two months of mortgage payments saved as a backup for any unforeseen expenses. The key is also to be absolutely sure you are comfortable with the monthly payment prior to obligating yourself,” Duenas said. p

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PROBLEM PREVENTION | MAINTENANCE

THE REAL ESTATE JOURNAL

Improving your fix-it attitude With stay-at-home orders still in effect due to the impacts of the coronavirus, now would be a great time to assess your home’s health and figure out what you can fix — or what you should leave to professionals.

The more technical maintenance problems, such as rewiring electrical circuits or installing plumbing systems, are better left to the experts. However, simple tasks like checking your smoke alarm, scouring your roof for possible cracks and adding drain-clearing liquid agents to your sink can make a big difference in maintaining a home.

“Curb appeal is always a good start,” said James Martinez, president of the Guam Contractors Association. “Make sure the yard is maintained and cut regularly. A new fresh coat of paint may also be a good project.”

But even a paint job can get tricky if you don’t know what you’re

doing, Martinez said. If anyone wants to learn practical skills to improve their fix-it proficiency, they should consider enrolling in classes at the GCA Trades Academy.

The academy offers courses such as painting, carpentry, electrical, plumbing and welding to anyone who is interested in picking up those skills.

“These classes are not only meant for registered apprenticeship programs, but also for self-enrichment. The courses are modularized, so you can pick and choose your topic of particular interest,” Martinez said.

But base-level skills can only do so much, and there will come a point where a home infrastructure problem may be beyond the average person’s ability to fix. In such cases, you are better off calling a contractor or professional. GCA keeps a list of more than 400 contractors and associates operating on Guam that residents can turn too when a home

problem becomes too big to fix.

“My advice is to make sure the contractor they entrust to build and/or maintain their homes to be reputable and licensed,” Martinez said. “You can check if the contractor is licensed by contacting the Guam Contractors Licensing Board, a government entity overseeing licensure of the islands contractors.”

Residents can also look online for tutorials and advice on maintaining their homes. These tips are especially helpful if a quick fix is needed, or if a budget does not allow for a contractor to be hired.

The Home Depot’s online blog contains a variety of life hacks on repairing and monitoring different aspects of a home. Some projects are easy to do, like cleaning an oven or maintaining a microfiber couch, while others require more time and steps to follow, like repairing a crack in a concrete driveway or installing doors.

The Family Handyman is another online resource that provides helpful tips for repairs and renovations to the home. Though plumbing pipes should be left to a certified plumber, homeowners are capable of replacing a toilet, fixing a leak or unclogging a drain.

The Family Handyman provides step-by-step tutorials on how to do projects like these, as well as recommendations on tools and products to use.

The Home Repair Resource Center, a nonprofit group based in Ohio, has available home repair guides that teach people how to work with various materials, such as asphalt, concrete, drywall and plaster. The resource extends to tips on energy conservation and sustainability by using more ecological, waste-free products in the home. p

VILL AGES | TALOFOFO

THE REAL ESTATE JOURNAL

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Thriving in “God’s Country” Talofofo is home to secluded beaches, deep jungles and residents who prefer the peaceful environment over the bustling, more commercial-heavy villages.

The village is roughly 18 square miles, stretching from the southeastern coast to the center.

Because Talofofo’s infrastructure is more focused on residence, the village has more things to do than more places to spend. Swimming, hiking, sightseeing and even taking a boat along one of Guam’s widest rivers can be enjoyed in Talofofo, which has quite a bold nickname.

“We are dedicated to serve Talofofo, also known as ‘God’s Country,” according to the Talofofo Mayor’s Office.

Douglas Perez, a real estate agent with RE/MAX Diamond Realty, said Talofofo is primarily a residential

village, save for a few long-running business such as the golf course, scattered mom-and-pop stores and the popular Jeff’s Pirates Cove, where residents and tourists alike go to eat and wind down.

“Talofofo offers a great mix of rustic and classic homes and new developments,” Perez said. “The interior of the village offers prototypical Guam suburban structure with mellow southern living, featuring cozy neighborhoods, secluded estates and community gathering spaces such as the gymnasium and sports fields where you frequently see residents of all ages exercising and coming together for recreation.”

The coastal part of the village, known as Ipan, offers more of the same environment as the village interior, but is joined by several

picturesque beaches. This is usually the first thing people see if they make their way to Talofofo from the east side.

One of the village’s landmarks, the Talofofo Caves, holds historic pictographs of life in ancient Guam.

The caves also make a great sight for exploration and hiking. The Valley of the Latte Adventure Park adds historic and cultural value by offering a boat cruise through several exhibits, including a latte site. And for the golf enthusiasts, the Onward Talofofo Golf Club offers seven courses to play on.

Rest assured, the people who call Talofofo their home have difficulty being bored.

“Whether it’s a cozy suburban home, sprawling ranch home, beach front or contemporary build, Talofofo has it all,” Perez said. p

INARAJAN POPULATION: 3,050 SCHOOLS: • Talofofo Elementary School, Notre Dame High School

RECREATIONAL HIGHLIGHTS: • Talofofo Falls, Ipan Beach Park, Jeff’s Pirates Cove, Valley of the Latte Adventure Park, Onward Talofofo Golf Club

HISTORICAL LANDMARKS: • Talofofo Caves

PROPERTY AVAILABILITY AND PRICE RANGE: • 5 homes for rent, from $1,800 to $3,200 a month • 9 homes for sale, from $298,000 to $850,000 • 35 plots of land for sale, from $32,000 to $1.68 million

MAYOR: Vicente S. Taitague

Talofofo Falls and the Yokoi Cave or two of several sightseeing places people can enjoy and learn from in the village.

Ipan, a coastal community of Talofofo, has various secluded beaches that residents and tourists alike can visit.

Photos by John I. Borja

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THE DOCTOR IS IN | CLEANING SERVICES

THE REAL ESTATE JOURNAL

A hands-on team to keep your space tidy With stay-at-home orders still in effect due to the impacts of the coronavirus, now would be a great time to assess your home’s health and figure out what you can fix — or what you should leave to professionals.

The more technical maintenance problems, such as rewiring electrical circuits or installing plumbing systems, are better left to the experts. However, simple tasks like checking your smoke alarm, scouring your roof

for possible cracks and adding drain-clearing liquid agents to your sink can make a big difference in maintaining a home.

“Curb appeal is always a good start,” said James Martinez, president of the Guam Contractors Association. “Make sure the yard is maintained and cut regularly. A new fresh coat of paint may also be a good project.”

But even a paint job can get tricky if you don’t know what you’re doing, Martinez said. If anyone

wants to learn practical skills to improve their fix-it proficiency, they should consider enrolling in classes at the GCA Trades Academy.

The academy offers courses such as painting, carpentry, electrical, plumbing and welding to anyone who is interested in picking up those skills.

“These classes are not only meant for registered apprenticeship programs, but also for self-enrichment. The courses are modularized, so you can pick

and choose your topic of particular interest,” Martinez said.

But base-level skills can only do so much, and there will come a point where a home infrastructure problem may be beyond the average person’s ability to fix.

In such cases, you are better off calling a contractor or professional.

GCA keeps a list of more than 400 contractors and associates operating on Guam that residents can turn too when a home problem continued on page 10

10

THE DOCTOR IS IN | CLEANING SERVICES continued from page 8

PUBLISHER Maureen N. Maratita EDITORIAL COORDINATOR Morgan Legel CONTENT COORDINATOR John I. Borja CREATIVE CONTENT MANAGER Vikki Fong DESIGN & PRODUCTION Conrad Calma Luisa Joy Castro Sean Davis Vandrick Veloria MEDIA SALES MANAGER Mike Mafnas SENIOR MEDIA SALES Kevin Iwashita ADMINISTRATION Tricia Scott DIRECTOR Ken Duenas MANAGING DIRECTOR Marcos W. Fong

The Real Estate Journal — April 27, 2020. Entire contents copyrighted 2019 by Glimpses Media. The Real Estate Journal is published monthly by Glimpses Media.

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becomes too big to fix.

“My advice is to make sure the contractor they entrust to build and/or maintain their homes to be reputable and licensed,” Martinez said. “You can check if the contractor is licensed by contacting the Guam Contractors Licensing Board, a government entity overseeing licensure of the islands contractors.”

Residents can also look online for tutorials and advice on maintaining their homes. These tips are especially helpful if a quick fix is needed, or if a budget does not allow for a contractor to be hired.

“Make sure the yard is maintained and cut regularly. A new fresh coat of paint may also be a good project.”

The Home Depot’s online blog contains a variety of life hacks on repairing and monitoring different aspects of a home. Some projects are easy to do, like cleaning an oven or maintaining a microfiber couch, while others require more time and steps to follow, like repairing a crack in a concrete driveway or installing doors.

The Family Handyman is another online resource that provides helpful tips for repairs and renovations to the home. Though plumbing pipes should be left to a certified plumber, homeowners are capable of replacing a toilet, fixing a leak or unclogging a drain.

The Family Handyman provides step-by-step tutorials on how to do projects like these, as well as recommendations on tools and products to use.

The Home Repair Resource Center, a nonprofit group based in Ohio, has available home repair guides that teach people how to work with various materials, such as asphalt, concrete, drywall and plaster. The resource extends to tips on energy conservation and sustainability by using more ecological, waste-free products in the home. p

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