Today's Guamhome October 2015 by Todays Realty

CONTENTS 01

SOLD! PROPERTY OF THE MONTH Cliff-line Tamuning Home

02 03

MARKET REPORT

Residential Market Snapshot from January 1, 2015 to October 1, 2015

PLANNING A KITCHEN REMODEL? CEILINGS: LEAVE THE POPCORN TO THE MOVIES

RECENTLY CLOSED LISTINGS

JUST LISTED

OLD LIENS

Recently listed properties in the market.

ACCOMMODATING OR EQUIPPING YOUR HOME FOR A DISABLED VET?

THE STUDENT LOAN EFFECT

PROPERTY MANAGEMENT

CLIFF-LINE TAMUNING HOME Your breathtaking ocean view from this cliff-line property expands from Two Lovers Point to the Hilton Hotel. This is a rare 3/4 acre lot, with a 4 bedroom, 3 bath, 2,870+ square foot home ready to host the casual to stately gatherings. A covered lanai is just a few steps to the landscaped yard and pool. The interior has high ceilings, and flows from the spacious living room and dining areas, to the modern kitchen. Spacious fourth bedroom room can also serve as a family room, guest quarters or office. The bedrooms are separated from the living areas for privacy. List Price: $1,575,000 Closed Price: $1,680,000 Days on the Market: 26 MLS ID: 15-2847

RECENTLY SOLD & RENTED LISTINGS 01 Tamuning Home

Listed: $368,000 • Sold: $370,000

This large Jonestown corner lot includes a 3bd/2ba home with carport and generous backyard covered patio. The property is fenced and gated. A large backup generator is included. Days on the market: 25 MLS ID: 15-2675

02 Tasi 17 Condo

Listed: $4,400/mo • Rented: $4,400/mo

Elegant 4 bedroom 3.5 bath Condo overlooking great ocean views and beautiful sunset views. High end kitchen on the first floor plus an additional entertaining area on the second floor with awesome ocean views. Days on the market: 56 MLS ID: 15-2441

03 Piti Home

Listed: $407,000 • Sold: $400,000

Glass, spanning the entire back wall of this tiled, double-sized living room, overlooks the ocean. A beautiful view!! Large formal foyer, lengthy granite kitchen counters...Plus, an extra room, kitchen area, and bath! 4bd/3ba

Days on the market: 91 MLS ID: 15-1769

04 Perez Acre Townhome

Listed: $2,450/mo • Rented: $2,200/mo

Nicely appointed and furnished, this 3bd/2ba townhouse is located in one of Guam’s most popular gated communities and is just 5 minutes from the Andersen Air Force front gate. Days on the market: 68 MLS ID: 15-2339

A LIST OF RECENTLY CLOSED LISTINGS TO HELP YOU ASSESS THE VALUE OF YOUR PROPERTIES

05 Ypao Gardens Condo

Listed: $2,200/mo • Rented: $2,200/mo

This is the new home you’re looking for. This first floor, upgraded condo is furnished with designer furniture, relaxing large balcony, 2 pools & more. Just up the hill from Tumon beaches. Days on the market: 294 MLS ID: 14-3696

06 Tamuning Home

Listed: $2,600/mo • Rented: $2,450/mo

Spacious 4 bedroom, 2 bath home on a 928+/square meter fenced lot. Only minutes from shopping, restaurants, theaters, schools, grocery stores & more. Days on the market: 61 MLS ID: 15-2417

07 Tumon View Condo Ph. I

Listed: $2,200/mo • Rented: $2,200/mo

Fully furnished 2 bedroom condo with water included with rent. Enjoy Guam’s premier beaches, hotels, restaurants and shopping centers all within walking distance of this unit. Days on the market: 49 MLS ID: 15-2335

08 Yona Home

Listed: $239,000 • Sold: $205,000

5 bedroom, 3 bath, 1,900+/-sf house on a 1,672+/-sm lot with many fruit trees. Includes outside covered concrete area and back patio as well to enjoy outdoors relaxation. Days on the market: 470 MLS ID: 14-1707

JUST LISTED 01 Villa de Coco Condo Tumon • $2,400/mo

One of the most desired, secured condos in Tumon. The building has surveillance cameras, partial generator and secured entry. The 3bd/2ba unit has been nicely renovated and comes fully furnished. Guamhome.com/15-2549

02 Nino Perdido Street Asan • $4,500/mo

You would definitely want to go home and welcome the sunrise or sunset with this 4br/4ba ocean view house. Elegantly designed with a contemporary touch and more great features to his humble abode. Guamhome.com/15-3191

03 Oka Tower Condo Tamuning • $2,450/mo

One of the best ocean cliff condominiums on Guam. Many amenities including a swimming pool overlooking the ocean, a playground, tennis courts, 24 hour gated security, mail delivery and back up generator. 3bd/2ba Guamhome.com/15-3185

04 Santos Lane

Ordot-Chalan Pago • $1,500/mo

Tucked in the private area in Santos Lane, this 3bd/3ba house might just be what you are looking for. You can have your parties with the extra space in the backyard & just have fun with families & friends. Guamhome.com/15-3196

AVAILABLE LISTINGS RECENTLY ADDED TO THE MARKET

05 Route 2

Umatac • $229,600

Elegant & serene, this southern beauty has 4 bedrooms and much more than what meets the eye to offer. Completely remodeled interior with more kitchen cabinet space one could ever want. Guamhome.com/15-3037

06 Chalan Kanton Ladera Talofofo • $360,000

Enjoy this large 3 bedroom, 3 bath house with 2,100+/- square feet of living space on a 1,024 +/-square meter lot in a very quiet area of Talofofo village. Property includes a 25K generator, 650 gal water tank, plus a 4 car carport. Guamhome.com/15-3167

07 Chalan Mayot A. Calvo Yigo • $249,000

Northern 12,611+/- square meter property with great potential. Located just less than five minutes from the Andersen Airforce Baser front gate. Guamhome.com/15-3157

08 Chalan Kareta

Mangilao • $2,200/mo

This 3bd/2ba home is situated in a comfortable and quite neighborhood. Close to Andersen and Navy, right smack in the middle of the island and quick drive to just about everything you will need to live on the island. Guamhome.com/15-3137

OLD LIENS

been released (a partial release should have been provided and recorded in 1992 when Mr. Jones purchased the property). Fortunately Mr. Jones still has his records from when he purchased the property and those documents prove that SBA One of the functions that a title and escrow company performs received funds from the closing. is to guaranty that all liens are paid in full when a property is sold to a new owner. That means that we not only pay off the Part of the service that title companies provide is curing title loans, but we also obtain a commitment by the lender that they defects, so we contacted the SBA and asked for a partial will release the liens once they have been paid. release to clear the title. After days of diligent research, the SBA notified us that the Smith’s loan went into default in 2000 I am dealing with a very interesting case right now and I am and a subsequent bankruptcy left over $200,000 owing on the not yet certain how it will be resolved, but I do know that mortgage. For this reason SBA refused to provide a release the Owner’s Title Insurance policy the buyers purchased will of lien. protect them from financial loss, 23 years AFTER they acquired the property. We are still in the thick of figuring out how to resolve this old lien on the property, but one thing I know for sure, Mr. Jones’ Here’s the situation: In 1990 the property owners, (lets title insurance policy will guaranty he does not have to pay off call them the Smiths), borrowed $150,000 to start a small this old mortgage himself, nor will he have to hire an attorney business. They mortgaged two of their properties to the US to protect the free and clear title to his property. Small Business Administration (SBA). In 1992, the Smith’s sold one of the properties to Mr. Jones. As part of the closing, the title company paid SBA $25,000 to release the property from the mortgage. Mr. Jones purchased a title insurance policy that guaranteed that there were no mortgages or liens against the property, that it was “free and clear”.

by Kim Anderson Young PRESIDENT, SECURITY TITLE, INC.

kim@securitytitle.net • 671.647.8100

Fast forward to 2015 and Mr. Jones has decided to sell the property and quickly gets a full price offer. Unfortunately, a search of the title discloses that the SBA mortgage has not

Finding simple solutions to complex real estate transactions.

ACCOMMODATING OR EQUIPPING YOUR HOME FOR A DISABLED VET? By John Voket In our last report, I reviewed a few trends related to current and future veteran housing needs. But one question still remains. How can you make your residence more attractive to a veteran looking for their dream home?

• Support pole. A floor-to-ceiling tension pole can be used wherever it fits, and will provide support for sitting, standing, getting out of bed, etc. • Support rails. A variety of rails are available, many of which can be moved to different areas, attached or used next to beds, bathtubs, tables, etc. •

Grab bars. These rails can be placed just about anywhere and are available in many styles, shapes and sizes. Be sure to securely mount them to a wall stud or use other effective hardware to ensure safety.

• Remote door openers. These devices can unlock, While there is woefully little information available on specific open and close a door with the touch of a button, and needs of veterans who may require accommodations for some can be operated from a wheelchair-mounted various injuries they may have sustained in service, the transmitter or an environmental control unit (ECU). Muscular Dystrophy Association offers an informative guide to equipping a home for various mobility challenges. To navigate stairs, residential models of inclined platform lifts are also available and can carry a person sitting in a According to MDA, restrictions and barriers are often wheelchair over a flight of stairs, while stairway lifts carry most prevalent in private dwellings such as apartments a seated person up or down stairs. Both have models in or houses, whether it’s a flight of stairs to the front door, which the platform or seat folds out of the way when not narrow doorways or a cramped bathroom. in use. Fortunately, there are many ways to make adaptations or Just remember, if you’re considering a stair lift, keep in modifications that promote independence and safety in mind that adding it can make it hard for others to use the a home—and even a few that may be easy to apply in stairs. homes that frequently host a disabled vet. The costs of each of these modifications can vary widely, however, as can local building requirements. Following are some of the less expensive safety equipment installations you may want to consider:

THE STUDENT LOAN EFFECT:

How Debt Impacts Homeownership for Millennials Freddie Mac’s Insight & Outlook report for September focuses on the challenges faced by three types of student loan borrowers, and how loan down payment mortgage loans could help, or not help, make homeownership possible. “The low homeownership rate among millennials is still something of a puzzle—it cannot be explained solely by the increase in student loan debt,” says Sean Becketti, chief economist, Freddie Mac. “However, student debt plays a role—higher balances are associated with a lower probability of homeownership at every level of college and graduate education. And recent data has confirmed that not all student debt is created equal. Students who attended schools with less-certain educational benefits have not fared well. Borrowers who did not complete their studies have fared worst of all. These groups are likely to continue to affect the pattern of homeownership among millennials. Moreover, a change just this month in Federal Housing Administration policy will make it more difficult for some student loan borrowers to qualify for a mortgage. Insight Highlights • Is the student debt overhang holding back homeownership among millennials? While the homeownership rate has been declining for all age groups, the rate among millennials is particularly low. •

Student debt tripled over the past 10 years, reaching $1.2 trillion in the fourth quarter of 2014. Aggregate student debt expanded for all age groups, however, the balances are concentrated among those under 30 years old and those between 30 and 39 years old.

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Before the crisis, homeownership rates of 27-to-30-year-olds with student loans (evidence of at least some college education) were 2 to 3 percent higher than homeownership rates of those with no student loans. That gap began to close during the recession and reversed in 2011. By 2014, the homeownership rate of borrowers was about one percentage point lower than the rate of non-borrowers.

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Recent findings suggest that it may be useful to think of student loan borrowers as being divided into three groups: successful investors, disappointed earners, and at-risk borrowers.

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The at-risk borrowers group is a particular focus for Freddie Mac’s efforts to support prudent, affordable lending to low-and-moderate income borrowers. The impact on credit scores of poor repayment performance may make it particularly difficult to assist some members of this group.

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For the disappointed earners—and even some of the successful investors—Freddie Mac’s Home Possible Advantage(SM) program, with its option to pay as little as 3 percent down, may provide help in purchasing that first home.

“Our Outlook this month shows the economy has not kicked into gear yet, and the Fed’s recent decision to defer increasing short-term interest rates suggests they share this view,” says Becketti. “At the same time, the housing market is on its way to having the best year since the recovery began. Keep in mind that the housing sector is coming back from rock bottom and housing activity remains weak compared to historical norms. At the same time, Fed watchers must feel they are watching a revival of ‘Waiting for Godot.’ Approaching every meeting of the Federal Open Market Committee, the market braces itself for a Fed tightening, only to watch the Committee delay any action for at least one more meeting.” Outlook Highlights • At the current pace, home sales this year are expected to be the highest since 2007. Existing home sales in August fell a little short of expectations, but the inventory of existing homes for sale remained below the six-month mark. •

The faster-than-expected decline in the unemployment rate is boosting demand for homes. However, a more significant contributor is likely the continued low level of mortgage rates, which has kept affordability high despite impressive gains in house prices. The interest rate on 30-year fixed rate mortgages averaged 3.9 percent in August, and the rate on 15-year fixed rate mortgages averaged 3.12 percent.

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Based on upward revisions of the 2014 Home Mortgage Disclosure Act (HMDA) data on mortgage origination, and stronger-than-expected housing activity in the first half of 2015, Freddie Mac has increased its estimate of 2015 mortgage originations to $1.53 trillion and 2016 originations to $1.40 trillion.