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NOVEMBER 26, 2018 ISSUE | REJGUAM.COM
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Properties to love
Tumon pearl The right stuff Cutting a rug
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Home grown Hands-off gardening
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Need to know Bringing it home
t INDEX PROPERTIES TO LOVE....................................................4 THE RIGHT STUFF...........................................................6 HOME GROWN.................................................................8 THE DOCTOR IS IN.........................................................10 MARKET WATCH............................................................14 VILLAGES........................................................................16 NEED TO KNOW.............................................................18
This Tumon pearl is within walking distance of the beach. It’s four balconies reveal a partial view of the ocean for ultimate relaxation. Photo by Steven Graff
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PROPERTIES TO LOVE
THE REAL ESTATE JOURNAL
THE SKINNY SAN VITORES PALACE UNIT A2 TUMON, GU $2,205 PER MONTH Inside • 3 bedrooms • 2 full bathrooms • Washer/dryer in unit • 1,400 square feet of living space Outside • Four balconies • BBQ area • Reserved parking What’s cool • Walking distance from beach, restaurants, shopping and entertainment in the heart of Tumon • Newly renovated kitchen and bathrooms • Partial views of ocean • Pet friendly How to make this your own (quickly) Contact: Renee Y. Harrison Century 21 Realty Management Call: 777-7071 Email: ryldesigns@yahoo.com
Tile floors make the 1,400 square feet of living space easy to keep clean.
Take advantage of top of the line appliances in the newly renovated kitchen and bathrooms.
In the heart of Tumon, this location is just minutes from restaurants, shopping and entertainment.
Photos by Steven Graff
THE REAL ESTATE JOURNAL
The rental comes with reserved parking space and a BBQ area for year-round gatherings.
PROPERTIES TO LOVE
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Two full bathrooms leave plenty of personal space for families.
At $2,205 per month, Unit A2 is perfect for anyone who loves to be close to the downtown action.
Photos by Steven Graff
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THE RIGHT STUFF | FLOORING
THE REAL ESTATE JOURNAL
Cutting a rug Tile, hardwood and laminate seem to get all the attention when it comes to the latest in flooring. But let’s not forget about carpet, which is alive and well. Textures and tiles are trending. Patterns are popular. And Berber is big. Like any flooring, it’s all about what you want to spend, and what look you’re going for. “People buy based on comfort and
price,” said Lani Flores, operations manager at the Carpet Store. “We have entry level to the very plush, thick, luxurious carpeting,” she said. Most buyers fall somewhere in the middle when it comes to cost and the most common place to put down carpeting is in the bedroom, Flores said. That space would typically run anywhere between $400 and $1,000 — not including
cost of installation. Three common types of carpeting include polyester, nylon and wool. Polyester is budget and eco-friendly and known for its sustainability and stain resistance, said Joby Thomas, general manager of Carpet Masters/Shutter Factory. Nylon is softer and has long-lasting durability, while wool — though popular — is not the best choice if
there are children in the household, he said. Newer technologies are also making carpets more durable and cushier, with many today treated with Scotchgard, a material that protects the carpet’s fibers and backing. Some carpets even glow in the dark (yes, glow in the dark — the lighting from the room continued on page 7
Patterned designs have become increasingly popular for commercial clients. Photo
courtesy of Carpet Masters & Shutter Factory
THE REAL ESTATE JOURNAL
THE RIGHT STUFF | FLOORING
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continued from page 6 energizes it so it kicks on when you flip the switch). Solid colors are still king for residential buyers, Thomas said, while patterned designs have become increasingly popular for commercial clients. Designed carpet won’t necessarily cost customers more money, but the installation may be higher because the installer has to spend more time matching everything up. Tiled carpeting has taken off in the commercial space and works well for office spaces and hallways — anywhere there is high traffic. It’s more expensive than traditional broadloom carpets, though. Berber — which is made from different types of yarn — is another popular carpet for places that have high traffic. Its durability makes it last longer and resist stains. There are also carpets with texture and multi-level loops, which give thems more interest and that layered look. One trend among many carpeting companies that do wallto-wall carpeting, Flores said, is to also make custom rugs, since hardwoods and laminate continue to attract customers. p
Covering a bedroom space in carpet would typically cost between $400 and $1,000 — not including cost of installation.
Berber — which is made from different types of yarn — is another popular carpet for places that have high traffic.
Photos by Steven Graff
Solid carpet colors are still king for residential buyers. 18-FHB-Mortgage_RealEstateJournal_Size6.875"X9".pdf
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HOME GROWN | HANDS-OFF GARDENING
THE REAL ESTATE JOURNAL
Improving your home’s curb appeal takes a level of expertise and commitment that many people don’t realize.
Photo courtesy of LMS
Sit back and relax Improving your home’s curb appeal with plants is no easy task. It takes a level of expertise and commitment that many people don’t realize. So, if you’re looking to elevate your property, consider letting the professionals take over. The island has several landscaping businesses to give you that sophisticated and well-designed green look. It’s also hands-off after that, as they come back every few weeks to maintain and water.
LMS Guam is one of the island’s long-standing, full-service companies that design landscapes for residential and commercial clients, install the plants and maintain the greenery. They have a wide range of professionals to make this happen, from planting crews to planners to architects to horticulturists and a nursey filled with native plants, shrubs and trees to choose from. For Robert Salas, owner and
founder of LMS, landscaping projects big or small are an art. “I love it,” he said, “because I like seeing things beautiful.” And keeping it that way takes the right tender loving care. “Planting a plant is like having a kid: you have to give it water, which is like the milk,” Salas said. “You have to give it medication when it is sick — that’s the fertilizer to kill bugs. It’s the same concept.” Some residents go into land-
scaping thinking it’s just planting plants in soil. “Then they realize it’s not that easy to make it look nice, especially the planting of the grass and the plants,” said Myrna Libardos, president of Guam Tropical Landscaping Inc., which has been serving the island since the 1980s. “[We] ensure that it’s going to grow healthy and maintain it.” p
THE REAL ESTATE JOURNAL
HOMEGROWN | HANDS-OFF GARDENING
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Landscaping takes a wide range of professionals, from planting crews to planners to architects to horticulturists.
Photo courtesy of LMS
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THE DOCTOR IS IN | WATER BL AS TING
THE REAL ESTATE JOURNAL
The pressure is on It might well be time to give your house or driveway a clean slate. This rainy season has left many of them stained and slick with mildew and mold. One of the easiest and most effective ways to wash off that grime is with a water blaster unit — which can be bought or rented on Guam. There are several different sizes of water blasters, each categorized by pressure measured in pounds per square inch. They typically run from 2,500 PSI to 5,000 PSI. The higher the PSI, the stronger the water pressure. The 2,500 PSI blaster is for general cleaning, like the inside of a garage, said James Adkins, vice president of East West Rental Center. But if you’re looking to remove mold from a driveway or house, or even strip paint from the side of a house or roof, go with a unit on the higher end of the pressure scale, he said.
“4,000 is the baseline where we would start someone,” Adkins said. “That will take care of almost anything, and the price difference is not a lot these days, as the technology has gotten better.” “We do offer the 2,500 to people who want to save a few bucks, but it’s going to take you longer,” he added. At East West, renting units costs between $100 a day for the 2,500 PSI and up to $154 a day for the 5,000 PSI. They can be rented in four-hour intervals, as well, at a cheaper rate, or weekly. Most are gas powered, which are stronger, but electrical ones are available. Consider splitting the costs of a day rental with a neighbor who needs to water blast their property, too. To buy a unit at Home Depot can cost anywhere between $250 and $1,000. Home Depot also rents out a 3,500 PSI unit for four hours, daily, weekly or monthly. Besides the unit, you’ll need a garden hose to feed it a water
supply. Using a 25 to 50-foot hose is recommended. The machine needs about five gallons per minute of flow. “If you get too far away [from the faucet], the water flow gets restricted,” Adkins said. “You want to get a good hose, nothing with a bunch of kinks in it. If you get low pressure coming into the pump, you will get low pressure coming out, and that can actually destroy a unit.” Units come with the output hose, the wand and different nozzles that dictate the spraying effect. Depending on what you are washing, it could take anywhere from two to four hours or more to complete the job. It’s important to follow the instructions to avoid hurting your property or worse, yourself or another person. Rental stores will give you tips on how to use their units safely and correctly. A few steps to know: Keep the tip of the wand at least 12 inches from the surface, so you get close enough
to remove the material, but far away enough so you don’t damage it. Don’t water blast yourself or other people — anything alive, really, even plants — and keep away from electrical boxes and cars. “One important thing is to not water blast with slippers on,” Adkins said. “Over the years, you would be surprised by the number of people who come back in with bandages on toes.” Also, never leave the unit idle and running for more than a minute — it could burn out the valve and it will need to be replaced before you can continue. Water blasting isn’t just a dry season activity on Guam. “People use this all year round,” Adkins said. “I think more people actually rent in the wet season, because it’s a lot cooler. A little cloudy and a little rain — that’s the best time.” If you think about it, you’re going to get wet anyway. p
Water blaster renting units can cost between $100 a day for 2,500 PSI and up to $154 a day for 5,000 PSI.
Rented water blaster units come with the output hose, the wand and different nozzles that dictate the spraying effect.
Water blasters are categorized by pressure measured in pounds per square inch and typically run from 2,500 PSI to 5,000 PSI.
Photos by Steven Graff
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MARKET WATC H
THE REAL ESTATE JOURNAL
Real property tax and its effects BY EDMUND E. BROBESONG In Guam, real property tax is imposed on land as well as improvements (e.g., buildings) on the land. For land, the real property tax rate is 7/72 (0.0972%) of the value. For this purpose, value means 90% of the appraised value (or fair market value). Therefore, the real property tax rate on land is effectively 0.0875% of the appraised value (or fair market value). Similarly, the real property tax rate on improvements is 7/18 (0.3889%) of the value. Therefore, the real property tax rate on improvements is effectively 0.35% of the appraised value (or fair market value). Public Law 34-116 provided for an additional real property tax of 7/18 on improvements with a value of $1 million. Because the law specifically says $1 million, we understand that the Department of Revenue & Taxation is looking for guidance from the attorney general on whether the additional real property tax applies to improvements with values over $1 million. By federal law (Organic Act of Guam), the government of Guam cannot borrow more than 10% of the “aggregate tax valuation� of the property in Guam. As mentioned above, value (or tax valuation) is 90% of fair market value. However, the assessed value was not always 90% of fair market value. Back in the 1970s, assessed value was 35% of fair market value. However, on Sept. 29, 2007, Public Law 2919, increased the assessed value to 70% of fair market value. On April 2, 2009, Public Law 30-07 increased the assessed value to 90%. On March 28, 2012, Public Law 31-196 increased the assessed value to 100%. However, on Sept. 10, 2016, Public Law 33-185 reduced the assessed value to 90%. Even though the assessed value as a percentage of fair market value was 35% in the 1970s, this percentage gradually increased to 100% and then back to 90%. However, the real property tax was 1% of the value resulting in an effective rate of 0.35% of the fair market value. During the 1970s, the real property tax rate was separated between land (0.5%) and improvements (1%). On July 8, 1996, the real property tax rate on land was reduced to 0.25%. Ever since July 8, 1996, the effective real property tax rate on land and improvements have been 0.0875% and 0.35%. Even though the assessed value as a percentage of fair market value changed, the effective real property tax rates remained the same because of corresponding changes to the real property tax rates. p
Source: Ernst & Young LLP
Source: Ernst & Young LLP
16 VILL AGES
| YIGO
THE REAL ESTATE JOURNAL
Growing up Yigo is the island’s largest and most northern v i l l a g e , encompassing 35 square miles stretching from approximately Pati Point to Ritidian in Shalyn F. Allen the North and President and from Ritidian principal broker Welcome Home Realty to the coast near Pagat. It is home to Andersen Air Force Base and numerous housing subdivisions, but still retains some of the most openrange and forested space on Guam. “[Yigo] is a little bit like the country, so it’s a little more private. You’ve got a little more space between the houses and a little more greenery. It’s not quite so crowded like Dededo or when you’re in Tamuning,” said Shalyn F. Allen, president and principal broker
at Welcome Home Realty. “Because of that our homes tend to be a little bit larger and we’re seeing a lot newer homes in our area versus in Tamuning or Dededo. We’re seeing a lot of building.” Since the 1980s Yigo has continued to grow, mostly through the construction of public and private housing subdivisions. Today, it is Guam’s second most populated village, and continues to become more and more popular with many projects upcoming and in the works. “We are seeing a lot of buildup with the military. If you just take Route 3 through Dededo it’s crazy how much they’re doing back there. And because of that we’re seeing a lot of new things coming up there,” Allen said. The Yigo Town Center, for example — where Welcome Home Realty’s office is — three years ago housed just her office and one bar. Now the whole space is filled — all of the units in that complex are taken.
“The commercial spaces are really filling up. … Yigo is getting a facelift and it feels good. It’s really exciting. … There’s reason to come to Yigo now,” she said. Allen said that she continues to see new houses popping up throughout Yigo as well. According to the Mayor’s Council of Guam, Yigo is known for its rich soil, which provides opportunity for growing coffee, cocoa, pineapples, oranges and tangerines. In the past it has been known for its production of chocolates, which were served to visitors in the Chocolate House of the Governor’s palace. The village derives its name from the word “yugu”, which is the frame placed over the neck of a carabao and harnessed to a cart. This may be as a result of the village’s multitude of Ifil wood trees, the hard wood used to make the yoke of the carabao and oftentimes the construction of the carabao cart. p
YIGO POPULATION: 20,539 SCHOOLS
Public: 5 • Simon Sanchez High School, F.B. Leon Guerrero Middle School, Machananao Elementary School, Daniel L. Perez Elementary School and Upi Elementrary School Private: 3 • Dominican Catholic School, Trinity Christian School, Saint Paul Christian School Military: 1 • Andersen Elementary and Middle School
SHOPPING AND RESTAURANT HIGHLIGHTS:
• Pay-Less Supermarket, Pacific Supermarket, Shen’s Furniture, Bubbly Tea Cafe, Ajiyiro, Uptown Pub & Grill, Island Girl Coffee ‘n Quenchers, Joann’s Bakery, Vons Chicken, McDonalds, Sao Mai, Pho Tasty, Café Panadero, VietBowl, Domino’s, KFC
GOLF COURSES: 3
• Starts Guam Golf Resort, Guam International Country Club and Palm Tree Golf Course (military)
PROPERTY AVAILABILITY/ PRICE RANGE:
• 52 residential for sale, priced $140,000 to $760,000 • 46 residential for rent, priced $500 to $4400 • 10 commercial for rent, priced $500 to $3200 • 2 commercial for sale, priced $1 million to $2.5 million MAYOR: Rudy M. Matanane ATTRACTIONS: Battle of Yigo Monument, Pacific Peace Memorial Park, Mt. Santa Rosa, Yigo Race Track, Ritidian Point
Photos courtesy of the Mayor’s Council of Guam
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NEED TO KNOW | SHIPPING
THE REAL ESTATE JOURNAL
Goods shipped from off-island need to be properly packaged so they stay intact during the trip and don’t get damaged or scratched.
Photo by Steven Graff
Bringing it home Vacations aren’t just for relaxing, sightseeing and spending time with friends and family. They’re for buying. That’s why taking an extra piece of luggage is a smart idea, so you can fit all those souvenirs from New York or trinkets from that outdoor market in Seoul on the flight back with you. But what about the dining room set or couch you spotted while off island? Or that bike you couldn’t find back home? Or the expensive sculpture you don’t want sitting in the belly of the plane? Don’t let their size or fragility defer you from buying — as long as you are willing to spend the
money and wait, you can pretty much ship anything back to Guam from the United States and even other countries like Japan and South Korea, via freight forwarder or shipper. First, it’s good to know what you can’t ship back: live animals, food that needs to be refrigerated or ammunition and explosives. Otherwise, it’s fair game. “If it’s within the confines of the opening of the container, then we can ship it,” said Paje Butler, general manager of Dependable Global Express. That means it needs to be less than seven and a half feet wide in order to fit inside either a 20-
foot or 40-foot shipping container that’s placed on the ship traveling by ocean. “I think most people who fly here are pretty savvy,” Butler said. “They do their shopping and drive up a U-Haul with everything they bought and drop off at the dock [outside of Los Angeles, for example] and then we will take it over to Guam.” If you’re not near a port, you’ll have to ship the items there. Many companies, like DGX, will also arrange to pick up them up. Dewitt Guam partners with its sister company Approved Forwarders in California to also ship items back to Guam for customers. Similar to DGX, they don’t accept
live plants, pornographic materials, alcohol exceeding one-gallon, hazardous materials or ammunition. Goods also need to be properly packaged so they stay intact during the trip and don’t get damaged or scratched. Remember, it’s likely being placed with everyone’s else goods in one container. The shippers use plywood and crates to secure the items in containers, but it’s up to you — or the packaging company you hire — to ensure the actual item is boat ready. “The ocean is not a smooth highway,” Butler said. “It’s gets pretty rough out there.” continued on page 21
THE REAL ESTATE JOURNAL
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Shipped items need to be less than seven and a half feet wide in order to fit inside either a 20-foot or 40-foot shipping container that’s placed on the ship traveling by ocean. Photo by Steven Graff
Antique cars, car parts, boats, air conditioning units, furniture — you name it and shipping companies have most likely gotten it back to the island. Dewitt has shipped back taxidermy items through the years, said Corine Berking, general manager at Dewitt. And several years ago, they delivered a few choice pieces from the Chinese Terracotta Army, including a life-size horse and some artifacts from the Qin Dynasty. But just because something fits doesn’t always mean it makes sense to ship. Cost is the biggest thing to consider, along with time. It takes at least two weeks for goods to be shipped via freight forwarders, but it could be longer, depending on the weather or other uncontrollable events. Companies price shipments by volume. It’s generally $6 to $7 per cubic foot. But there are other costs to consider, like customs and the Invasive Species Inspection fees, which shippers generally build into costs. The latter fee is affordable, though, at 75¢ for 1,000 pounds. Delivery to your home on Guam will cost you, too. Shipping items back via plane is another option, though only for continued on page 22
NEED TO KNOW | SHIPPING
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NEED TO KNOW | SHIPPING
THE REAL ESTATE JOURNAL
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PUBLISHER Maureen N. Maratita BUSINESS EDITOR Meghan Hickey LIFESTYLE EDITOR Jesse C. Babauta CONTENT COORDINATOR Steven Graff CREATIVE DEPARTMENT SUPERVISOR Vikki Fong DESIGN & PRODUCTION Conrad Calma Keisha Marie Gozum Luisa Joy Castro GENERAL SALES MANAGER Ken Duenas PRODUCT REPRESENTATIVE Arvie Cipriano ADMINISTRATION Janice Castro Carmelita McClellan Jenalyn Aguon MANAGING DIRECTOR Marcos W. Fong
The Real Estate Journal — November 26, 2018. Entire contents copyrighted 2018 by Glimpses of Guam Inc. The Real Estate Journal is published monthly by Glimpses of Guam Inc. 161 US Army Juan C. Fejeran St., Barrigada Heights, Guam 96913. (671) 649-0883; Fax (671) 6498883. POSTMASTER: Send address changes to Marianas Business Journal, P.O. Box 3191, Hagåtña, Guam 96932. Send e-mail to glimpses@glimpsesofaguam.com. All rights reserved. Subscriptions, 6 months $60 1 year $120. Payment must accompany order. 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 Marianas Business Journal 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.
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relatively smaller, lighter items. Can’t fit those extra clothes or books you bought in your suit case? Private companies like FedEx will ship them back to Guam, as will the United States Postal Service. They have similar restrictions. Shipping from places outside the United States is more involved, but stateside shipping companies do have offices in major international cities, so it’s doable. And you can always ship from a post office overseas. Make sure you factor in some time to drop off boxes or packages at the shipping locations, post office or a port — it can be time consuming, so plan accordingly. p
Companies price shipments by volume, which is typically $6 to $7 per cubic foot. Photo by Steven Graff