Real Estate Journal - September 7, 2020 by Real Estate Journal

SEPTEMBER 7, 2020 ISSUE | REJGUAM.COM

Life is at home. So is your bank. DIGITAL BANKING Learn more at fhb.com/digital.

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Properties to love

Member FDIC

A room with a view The right stuff The virtual schoolroom

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The doctor is in When to buy a home

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Need to know Flipping a property

t INDEX PROPERTIES TO LOVE....................................................2 THE RIGHT STUFF...........................................................4 PROBLEM PREVENTION................................................6 THE DOCTOR IS IN...........................................................7 PROFILE............................................................................8 NEED TO KNOW...............................................................9

This three-story, gray residence can act as a retreat from the craziness of the world. Photo courtesy of Today’s Realty.

PROPERTIES TO LOVE

THE REAL ESTATE JOURNAL

THE SKINNY 190 KINDO CIRCLE SINAJANA, GUAM 96910 $585,000 Inside • 4 bedrooms, 3 bathrooms • 3,265 square feet living space, 547.75 square meter lot • 3 stories Outside • Ocean view • Second floor balcony • Concrete driveway What’s cool • Intricate stair rail throughout house • Multiple living areas • Jetted tub How to make this your own (quickly) Contact: Julie Paxton Today’s Realty Call: 671-687-6900 Email: julie@guamhome.com The beautiful carved staircase carries throughout the whole property.

A featured main living space of three such areas is open and spacious.

Photos courtesy of Today’s Realty

PROPERTIES TO LOVE

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THE RIGHT STUFF | THE VIRTUAL SC HOOLROOM

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A working space for students at home School is officially back in session, but students will have to take a more distant approach to learning as Guam tries to safely navigate through COVID-19. This means children will be studying and doing assignments at home, which may not initially sit well with them. With a few changes to their space and a little encouragement, the home can

easily become an effective learning environment for any age. “The new school year brings a set of unprecedented challenges for everyone. I would encourage parents to create a designated study space for their children, even if it’s just a small table in their bedroom or living room,” said Nina D. Field, owner of NKPDF Designs. “The designated space will allow

kids to focus and be prepared for the day’s activities.” Field, who has an eye for design, said she enjoys do-ityourself projects and that a little imagination can go a long way. If your children are young and have their own rooms, you can transform their space with vibrant colors and patterns to promote a more comfortable environment.

“For children’s décor, I usually lean towards soft pastel colors for a dreamy, whimsical effect. Another trend is incorporating nature, which involves yellows, greens and earthy tones,” Field said. But it’s best to avoid designs that incorporate pop figures, like cartoon characters, as children can quickly lose interest in them, she added.

Nina D. Field, owner of NKPDF Designs, is shown outside her shop space in Tamuning.

Photo courtesy of Nina D. Field

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THE RIGHT STUFF | THE VIRTUAL SC HOOLROOM

A transparent acrylic board with markers can be used to keep track of homework and chores, or for young children to practice writing.

Let children help with DIY projects so they can feel proud of them when they are displayed in the home. 20-FHB-MortgageOnlineApp_REJ_Size7.5"X10".pdf

8/14/20

4:03 PM Photos courtesy of Nina D. Field

With students learning from home, it is also a good opportunity for parents to be more involved in assisting their children with their craft-related projects. After these projects are graded, they could either be posted on the fridge or later used as accent pieces in the home. This adds a personal touch to the home, and students will feel happy to see their work prominently displayed. During down time, parents can engage their children with DIY projects that can include some of the lessons their students have learned so far. “My favorite suggestion is the humble cardboard box,” Field said. “It can literally turn into anything with just a little bit of imagination. The best part is that kids can participate in the decoration phase. Just cut up the cardboard into the desired shape, give them paints and then let them run wild.” Yet even with these small fixes to motivate a student to learn, parents should also ensure that their children are socially and mentally prepared for the at-home learning environment as well. The Guam Department of Education put together some guidance that can help students focus as they experience unprecedented times. • Encourage children to create a healthy routine to keep themselves busy. • Provide a healthy diet, rich in vegetables and fruits. • Take time to speak with your children to identify personal triggers to stress, and create a plan of action with them to problem solve. • Help your children build safe social supports by connecting with friends and family members through virtual meetings. • Encourage your children to exercise and participate in physical activities. p

PROBLEM PREVENTION | OVERSPENDING

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Calculating mortgage payments After the initial down payment and other upfront costs of buying a home, homeowners then prepare for the long road in paying back the loan for their home via mortgage payments. Several factors determine how much an individual pays each month, such as which payment plan they prefer, what their budget and income is and how much interest is added to the mortgage. These factors alone can already prove to be too complicated for people to calculate, which is why it is crucial to visit a preferred lender to break the numbers down. Molly M.Q. Duenas, vice president and manager of

residential lending at BankPacific, said a loan specialist is the surest way to determine an estimate of a mortgage payment. “While there are various loan and mortgage payment calculators available online, we highly encourage potential applicants to contact our loan originators who can do a pre-qualification, which will provide the borrower with an estimated or proposed monthly payment,” Duenas said. Consulting with a financial institution can also present opportunities to review special programs or incentives that the borrower may be eligible for to help with mortgage payments.

But for those who want to get a quick estimate and are savvy with their finances, there are numerous mortgage calculators online that can be used. Several local banks and real estate companies like Blue Pacific Realty and Horizon Properties have the tool on their website, and it is just a matter of inputting numbers. Determining the mortgage amount requires the full price of the home, the loan amount, down payment, interest rate and mortgage term. Some calculators incorporate other costs such as property taxes, insurance, homeowners’ association fees. Bankrate.com has an equation

for a rough estimate: M = P[r(1+r)^n/((1+r)^n)-1)], where: • M is the monthly payment • P is the principal loan amount • r is the monthly interest rate • n is the number of payments to satisfy the loan If a homeowner has the means to spend more than the minimum monthly mortgage payment, they should do so, even from time to time. “Making extra payments is never a bad idea. It just means that they’ll pay off the balance sooner rather than later,” Duenas said. But also be sure that you are saving enough to make payments throughout the years. p

Mortgage calculators — like this one on the Horizon Properties website — can help provide an estimate of what prospective homeowners will need to pay monthly.

Screenshot via Horizon Properties website

THE REAL ESTATE JOURNAL

THE DOCTOR IS IN | WHEN TO BUY A HOME

The perfect time to shop in the property market Despite a slim inventory in the housing m a r k e t , realtors are saying that now is a great time to purchase a home because of the low Alfredo Bustamante interest rates and, in some cases, lower selling prices. Of course, the decision to buy a home is not one that can be made on the fly. A lot of thought needs to be put into the investment, which takes time and money. But after squaring away a budget and then securing a home, this decision can be worthwhile. “Right now is a great time to buy property. Interest rates are very low and there are many incentive programs for first-time homebuyers,” said Daniel Bruschi,

principal broker of BHI Realty. Edge Realty principal broker and CEO Alfredo Bustamante said, in his assessment, factors can Daniel Bruschi combine. “COVID-19 has hit the economy pretty hard, extending to some investors and owners. If you have the funds or a VA certificate of eligibility, then you will do well as interest rates are at their lowest and sellers are willing to give more concessions to buyers in order to sell their units,” he said. Given current economic conditions, some families may not have the budget to consider buying a home at the moment, and instead choose to rent apartments. While this makes a for a great short-term

investment, both Bruschi and Bustamante cautioned that renting basically means putting away money you will never get back. The decision to buy a home may be off-putting at first because of the steep upfront cost — usually a 20% down payment — but some of the money you put towards the home eventually returns in equity. “Even if you have to get financing and pay a monthly mortgage payment, some of that payment is toward your principle, which is basically yourself,” Bruschi said. “As long as property values remain the same or grow, you will most likely be building a good amount of equity in yourself.” Buying a fee simple property, which means owning the property for a lifetime with the ability to pass it on to someone else later, can further add lifelong value to the purchase. This means being able to secure a home for your children and their children, if they decide to

remain in the property. However, it is also worth noting that when owning a property, the buyer is also in charge of its maintenance. This includes out-ofpocket expenses on renovations, infrastructural maintenance and yard clearing. But the silver lining is that the owner is not bound by any restrictions as to how they want to change the property. A great way to start the process to buying a home is to be acquainted with a bank lender. Financial institutions provide helpful advice on what you can or cannot afford. It is also important to be pre-qualified for a mortgage. “If you are approved by the bank, the next step would be to make sure that the house you choose has a good resale and rental value. This will allow you to sell or rent easy if any emergencies arise,” Bustamante said. p

Due to the current housing climate created by COVID-19, experts say this is a perfect time to buy a home. Photos courtesy of In & Out Painting Guam Corp.

REAL ESTATE PROFILE | HOME VENTURES REALTY

THE REAL ESTATE JOURNAL

Real Estate Profile — Century 21 Commonwealth Realty

CENTURY 21 COMMONWEALTH REALTY YEAR FOUNDED ON GUAM: Oct. 21, 1985, celebrating its 35th anniversary this year PRINCIPAL BROKER/CO-OWNER: Patricia “Patty” Cotton CEO-BROKER/CO-OWNER: Ryan De Guzman NUMBER OF REALTORS: 43 WEBSITE: www.guamparadise.com Patty Cotton

PHYSICAL LOCATION: 341 South Marine Corps Dr., RK Plaza – Ste. 205, Tamuning, GU 96913 AREAS OF EXPERTISE: Military relocation, residential, property management, commercial and raw land.

INVESTMENT TIP: If you have to finance it, you can’t afford it. The only exceptions Ryan De Guzman to this rule are homes and cars. If you can’t pay for it on the spot, then you should wait to buy it until you have saved the cash. (Buffini and Company — How to Achieve Financial Freedom) REAL ESTATE PICK OF THE MONTH: 268 Bejong St., Barrigada Single-family home with five bedrooms and 2.5 bathrooms. Total living space is 2,600 square feet. List price is $586,000.

Photos courtesy of Home Ventures Realty

NEED TO KNOW | FLIPPING A PROPERT Y

THE REAL ESTATE JOURNAL

BEFORE

Proper home maintenance and renovations to a home, even if as simple as curb appeal, can increase the sale price of the property.

Photos courtesy of Guam Service Pros Facebook page

Buying low, selling high Buying a home can already seem like a chore for some, but only those with an eye for potential have the skills to “flip” a property. With flipping, a buyer can purchase a property for the sole purpose of renovating or adding value to it, to then sell it a higher price. This nifty trick requires some research into the real estate industry and hands-on labor, but the finished product can result in a handsome profit for the buyer. “This is something very common in the real estate industry — sellers who want

to sell their house quickly and in ‘as is’ condition for personal reasons,” said Angela Duenas, a real estate agent with Century 21 Commonwealth Realty. “There are buyers who look for properties like this. They invest money in the renovations and then sell the improved property for profit. You need to know the market and what a good price is for a home, so that you can still make a profit after the renovation cost.” There are many components of this process that need to be taken into consideration, Duenas said.

First, the buyer must understand the after-repair value of the home, including upfront expenses. This includes the costs incurred for renovations, construction, taxes and additional carrying costs associated with property financing. The buyer must also study the market diligently, in order to spot when a new, lower priced listing pops up. Buyers should especially consider location, demand and how long the property will sit on the market. Home improvements will surely

add some value to a property, but it almost always comes at a price. Depending on the budget, a property owner can paint the house and renovate the kitchen, bathrooms and flooring to increase the final sale price. But if expensive upgrades are not within the seller’s budget, simple home maintenance can also work wonders. “You can always focus on the smaller price tag items like upgraded light fixtures, faucets, doorknobs and hardware. It does continued on page 10

NEED TO KNOW | FLIPPING A PROPERT Y

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AFTER 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 — September 7, 2020. Entire contents copyrighted 2019 by Glimpses Media. The Real Estate Journal is published monthly by Glimpses Media. 161 US Army Juan C. Fejeran St., Barrigada Heights, Guam 96913. (671) 649-0883; Fax (671) 649-8883. POSTMASTER: Send address changes to Glimpses Media, P.O. Box 3191, Hagåtña, Guam 96932. Send e-mail to glimpses@glimpsesofguam.com. All rights reserved. No material may be printed in part or in whole without written permission from the publisher. Printed by Guam Daily Post LLC, on Guam. In the Northern Mariana Islands, contact Glimpses Media at Glimpses of Saipan Inc., 2nd Floor Transpac Business Center, Middle Road, Gualo Rai, Saipan, MP 96950, or call (670) 235-7645; Fax (670) 234-1801. Send e-mail to subscriptions@ glimpsesofguam.com.

Glimpses Media includes Guam Business Magazine, Marianas Business Journal, MBJ Life, The Real Estate Journal, Beach Road Magazine, Buenas, Drive Guam Magazine and Pocket Deals. Glimpses of Guam Inc. Mission Statement: To connect people with information.

Proper home maintenance and renovations to a home, even if as simple as curb appeal, can increase the sale price of the property.

Photos courtesy of Guam Service Pros Facebook page

continued from page 9

not cost anything to keep your home decluttered and clean,” Duenas said. And don’t underestimate the power of curb appeal. Sellers can clean the home’s exterior or hire one of the local home maintenance companies to get the job done, like Guam Service Pros. Owner Michael Taitano said his business offers a variety of services, like janitorial work, landscape installations and deep cleanings, to make the home look almost like new. “As always, a great looking yard has lots to do with the presentation of a home. Among that would definitely be a nicely pressure washed driveway and walkway,” Taitano said. Budget and timing determine how much a cleaning company is able to restore a property. A fancier budget would include some landscaping, hedging and pruning, in addition to cutting grass, raking and removing green waste. Inside the home, high ceiling cleaning and various experts can also be hired help. Taitano said his team would typically spend 1.5 hours on exterior work and four hours on the interior. The tidier the home, the more likely someone will feel comfortable purchasing it at a higher price. p

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