Real Estate Journal - July 06, 2020

JULY 6, 2020 ISSUE | REJGUAM.COM

Life is at home.

So is your bank.

DIGITAL BANKING Learn more at fhb.com/digital.

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Housing trends

Member FDIC

Safe homes, neighborhoods are trending The right stuff Refinancing

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Problem prevention Renting versus buying

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The doctor is in Moving

t INDEX NEED TO KNOW...............................................................3 THE RIGHT STUFF...........................................................4 PROBLEM PREVENTION................................................6 REAL ESATE PROFILE....................................................11 THE DOCTOR IS IN.........................................................12 Gated homes are popular on Guam because they add a sense of security.

Photo courtesy of Guam Home Creators

THE REAL ESTATE JOURNAL

NEED TO KNOW | HOUSING TRENDS

Local homeowners love spacious designs that promote cooler air circulation in the home.

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A typical Guam home has a good mix of traditional and modern designs, often augmented by smart technology

Photos courtesy of Guam Home Creators

Safe homes, neighborhoods are in Planning and budgeting for a new home can take up so much of a person’s time and energy that they may forget to ask, “What kind of home do I want?”

Not to fear; insight from home experts can shed light on popular themes, styles and designs that you may resonate with.

Safety and convenience are the two main factors clients are looking for nowadays, according to Ryan J. De Guzman, CEO and broker associate of Century 21 Commonwealth Realty. Along with their preferred location and budget, homebuyers generally look for a home that is not far away from work or shopping locations — no more than a 20-minute commute.

“Gated communities and gated homes with garages are very favorable for homebuyers,” De Guzman said. “Safety is extremely important to the homebuyer so

this provides most of the peace of mind necessary for them to feel secure. Some do appreciate seclusion, but most (clients) I service would certain choose a safer, more populated environment over a private and secluded one.”

In the course of the past year, data from the real estate Multiple Listing Service indicates that: 295 home were sold in central villages; 178 homes were sold in Dededo and Yigo; and 74 homes were sold in the southern villages. Homes in central and southern villages are becoming increasingly popular, De Guzman said, in contrast to northern villages with denser populations and traffic congestion.

As for living space, the typical buyer seeks a three- to fourbedroom home with two or three bathrooms, depending on family size. These homes are about 1,500 square feet to 2,000 square feet, De

Guzman said.

There are several popular features for the interior of the home, as well. Johnny Lee of Guam Home Creators has worked on many renovations and construction of dream homes and noticed his customers favor spacious dwelling units.

“Our clients love the open living space concept, such as a big spacious kitchen that melds into a nice living room or high ceilings with dropped recessed lighting to brighten the house while cooling the room,” Lee said.

Other popular features include aluminum awnings on patios, hanging barn doors, accent walls, walk-in closets, outdoor kitchens, wooden plank tiles and typhoonand soundproof windows and doors, he said.

A mix of traditional and modern designs have been requested by

Lee’s clients, though he has noticed in the past five years, people have been looking at more traditional designs. Still, today’s homes are augmented with smart technology, so even rustic styles have modern twists to them.

Whatever stylistic preference a client is looking for, Lee strongly recommended choosing a home that can endure Guam’s humid and unpredictable weather.

“Please only consider concrete or concrete equivalent buildings in order to withstand our typhoon season. The sun and rain is relentless on the island and it’s definitely not recommended to have wood or tin structures,” he said. “If you were to consider a more affordable home, container homes made out of shipping containers with a good foundation are much safer than a wood or tin structure.” p

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THE RIGHT STUFF | REFINANCING

THE REAL ESTATE JOURNAL

Making the switch Long-term mortgage payments can often take a toll on a homeowner’s budget, especially if personal life change or unforeseen circumstance alters finances. In this situation, refinancing may be the best solution.

Refinancing is the process of switching your current loan with another loan in an effort to reduce the amount you have to pay off.

Replacing a loan with another loan may sound like more debt will be added on, but the process can help with changing the length of your mortgage, taking advantage of a lower interest rate and getting more money from home equity.

In Guam, homeowners can consult with the various financial institutions to determine whether or not refinancing is the right choice. Certified public accountants can also assist in this decision. Applying for refinancing is similar to how a homeowner would apply for his or her initial

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mortgage. However, the board of governors of the Federal Reserve System advises that those who seek refinancing should be aware of the costs that come with the switch. These costs can be from an application fee, appraisal fee, inspection fee or homeowner’s insurance that comes with the new loan.

“It is not unusual to pay 3% to 6% of your outstanding principal in refinancing fees.

These expenses are in addition to any prepayment penalties or other costs for paying off any mortgages you might have,” according to the Federal Reserve Board.

When adjusting the length of the mortgage, it can sometimes be more beneficial to shorten the term than to extend it. The Michigan Association of CPAs wrote that though extensions can lead to reduced monthly payments, it could also increase the amount of interest you will have to pay.

“Sometimes you can lower your mortgage costs by extending the term of your loan, but you may end up with a short-term gain and a long-term loss,” the association wrote. “Going from a 20-year to a 30-year mortgage will have you paying interest over a longer term, which pushes up the total cost of the loan to you.”

The Federal Reserve Board also cautions that there are situations where refinancing may not be a good idea. If a homeowner has had a mortgage for more than half of its term, remaining payments may be applied towards principal, which builds home equity. Refinancing that mortgage will revert the homeowner into once again paying off interest. Refinancing may also not be a good option if the homeowner plans to move from their property soon.

Those points aside, timing can be important.

Coast360 Federal Credit Union said that rates are currently “rock bottom low,” and advised homeowners – whether for an investment or a private residence to consider acting swiftly. The credit union works with clients on a timeline and offers a variety of fixed rate loans.

Cathy Champaco, chief lending officer at Coast360 said, “Buying or refinancing a home can be an overwhelming experience. Many people are unaware of what is involved or how to get started and that’s where we come in. Our mortgage officers at Coast360 have years of collective experience in the U.S. and Guam market and can help navigate the entire process for you from A to Z. p

THE RIGHT STUFF | REFINANCING

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PROBLEM PREVENTION | RENTING VERSUS BUYING

THE REAL ESTATE JOURNAL

Which option is right for you?

While it is everyone’s dream to own his or her own home at some point in life, this goal is not always within grasp. Therefore, renting becomes a better option for some.

In other cases, the decision to buy may end up being a better, more affordable investment than renting.

So how can one know when it is more effective to buy or rent?

The Mortgage Research Center, an online resource that assists home buyers and sellers, boils it down to two factors: how much the homeowner expects the home to appreciate and how long the homeowner intends to live in that home.

“A homebuyer usually needs to stay in the home for at least three years to make up the costs,” according to the Mortgage Research Center. “Affordability must be taken into consideration when deciding to buy or rent, despite the plans of a person to stay in a home for a long time. Many financial experts suggest that buyers keep their

monthly residential payments at 33% or below their gross monthly income.”

For Mangilao resident Sharon Desoyo, renting has been the more economic choice for her. In a span of 12 years, she and her children have lived in two apartments and a home rental, getting by on a single income. However, she also recognizes the merits of buying a home.

“If I can buy a home, I would.

It’s definitely a better investment than renting,” Desoyo said. “It’s good to own property. After you pay it off you own it, and you have the options of selling it, renting it out or leaving it for your children.

Ideally, it’s something I would want to hand over to my kids once I pass.”

But the upfront cost of a buying a home is her obstacle, she said.

Renting tends to be a better choice for those who are just starting out in life, like college students or

This Sinajana home is on sale for $3.98 million.

people who are beginning their careers. From her observations, condominiums and apartments are the more affordable options in terms of renting.

Jason Dinkel, also from Mangilao, has owned three homes in his lifetime, because buying a home usually turned out to be the better option for him. His mortgage payments were cheaper than what one would pay for rent, he said.

He added that there’s also a tax advantage in owning property.

“When you buy a home, it’s like putting money away into your savings. If you decide to sell, you get the money back in your pocket,” Dinkel said.

There are various programs and grants that can help homeowners with purchasing a home or at least getting them started on saving for one. Desoyo recommended checking opportunities at the Guam Housing and Urban Renewal Authority or the Guam Housing

Corp., because she had benefited from their services.

The Mortgage Research Center also listed these benefits for either renting or buying: • The initial investment to rent costs less than buying.

• A renter has fewer responsibilities in the care of the home, as they may not need to do repairs themselves.

• Renters have more flexibility when moving.

• Buyers have full control of their property and the freedom to remodel, renovate and expand.

• Buyers can get build credit when paying monthly mortgages on time.

• Aside from the steep down payment, mortgage payments may actually be less than rent, depending on the interest rate and the payment plan. p

These condominiums in upper Tumon are for rent.

Photos courtesy of Guam Realty Finder

THE REAL ESTATE JOURNAL

REAL ESTATE PROFILE | CENTURY 21 REALTY MANAGEMENT CO.

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Real Estate Profile — Century 21 Realty Management Co.

CENTURY 21 REALTY MANAGEMENT CO.

Chris Felix

YEAR FOUNDED ON GUAM: Feb. 1, 1983 PRINCIPAL BROKER: Christopher K. Felix NUMBER OF REALTORS: 9 PHONE: (671) 647-5003 EMAIL: felix@guam.net WEBSITE: guamproperties.com PHYSICAL LOCATION: 701 S. Marine Corp Drive AREAS OF EXPERTISE/SPECIALTIES: Residential, commercial, industrial and property management

INVESTMENT TIP FROM AN EMPLOYEE: • “Make sure you can afford the monthly payments and try to put a little extra down on investments.” — Christopher K. Felix, principal broker PICK OF THE MONTH • 1001 Agana Beach Condo is for sale at $1.2 million. It is a 2,200-square-foot penthouse unit with four bedrooms and four bathrooms.

Photos courtesy of Century 21 Realty Management Co.

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THE DOCTOR IS IN | MOVING

THE REAL ESTATE JOURNAL

Several moving companies on Guam, such as Dewitt Guam, provide a variety of transportation and storage services for those moving on or off island.

Photos courtesy of Dewitt Guam

Pack up and go With the COVID-19 pandemic still limiting transportation on and off island, Guam’s moving companies are reassuring the island community that their services remain available to residents.

Moving companies provide

a variety of services, including transportation of large items, storage and records management.

There are several certified companies on Guam for residents to choose from, so determining which one to go with is simply a

matter of preference. It is always a good practice to get multiple quotes on cost, so be sure to contact these companies for consultation.

One option is Guam Pak Express. The company specializes in moving, storage, transportation,

contracting and logistics. After making initial contact, the company will then conduct an assessment to determine that type of service is needed. “Once contact is made, we continued on page 14

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THE DOCTOR IS IN | MOVING

THE REAL ESTATE JOURNAL

continued from page 12

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 SENIOR MEDIA SALES Kevin Iwashita DIGITAL MEDIA SALES Natalie Gilbert ADMINISTRATION Tricia Scott DIRECTOR Ken Duenas MANAGING DIRECTOR Marcos W. Fong

The Real Estate Journal — July 6, 2020. Entire contents copyrighted 2019 by Glimpses Media. The Real Estate Journal is published monthly by Glimpses Media.

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quickly respond to you to discuss your move and, when necessary, schedule a pre-move survey,” said Donovan Paulino, business capture and development manager at Guam Pak. “When our survey is complete, we promptly provide an estimated cost and duration for your move and advise you of immediate options for your moving date.”

The surveys are usually done either virtually by video, by telephone or through on onsite, in-home walkthrough, Paulino said. For moving companies, price estimates of the services vary based on the volume of items and sometimes by the nature of the items being transported. When taking the survey, customers should be very clear about which items need special attention, especially if they are fragile.

“While we pride ourselves on keeping our customers’ items safe from damage, theft or loss, some items are better kept with the customer. “Certain valuable or sensitive items such as jewelry, cash, personal items and important documents serve as some examples,” Paulino said.

The criteria for on-island moves are different from off-island relocations, so it is important to read a company’s contract and list of services before deciding on one. Corine Berking, president of DeWitt Transportation Services of Guam, which does business as Dewitt Guam, said the company has plenty of experience with helping customers move or ship items around the world. However, a customer should always do their due diligence in researching companies to prevent incidences with their possessions.

“It’s important to note, when selecting a moving company it is vital that you compare quotations line by line,” Berking said. “If you are requesting for a door-to-door, read all exclusions to have a clear understanding of what you are paying for so you do not have any surprises at the destination. Always ask questions and select a professional and experienced moving company to manage your move.”

Berking also advised that if a customer has less than 10 small- to medium-sized boxes and does not expect to ship large items, it is more economic to go through the local post office.

Also, be sure to check if the moving company provides insurance and liability coverage.

This is an added protection to your possessions in the event an unforeseen incident damages your personal items. Both Guam Pak and Dewitt Guam provide these protections for their customers. p

Photos courtesy of Dewitt Guam

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Entire contents, including but not limited to content, design and concept Copyright ©2020 by LG&G Corporation. All rights reserved. Anthony R. Godwin • Principal Broker SCAN ME