Guam Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from the Guam market statistics and home values to community happenings on the island. That’s because we care about the island community and want to help you find your place in it. Please reach out to us if you have any questions at all. We’d love to talk with you!

July 11, 2024

8 Benefits of Doing a VA Assumption as a Buyer in Guam

Essential Packing: 8 Must-Have Items for Your Household Goods Shipment to Guam

 

When considering purchasing a home in Guam, one option you may come across is a VA loan assumption. This process involves assuming the existing VA loan of the current homeowner, transferring the responsibility of the mortgage from the seller to the buyer. VA loan assumptions can offer several advantages to buyers, making them a smart choice for veterans and active-duty military personnel. Here are eight benefits of doing a VA assumption as a buyer in Guam.

One of the most compelling reasons to consider a VA loan assumption is the potential for a lower interest rate. VA loans typically offer competitive interest rates compared to conventional loans. If the existing VA loan was secured when interest rates were lower, assuming this loan can allow you to benefit from those favorable terms, potentially saving thousands of dollars over the life of the loan.

 

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Unlike traditional home purchases where a new appraisal is required, a VA loan assumption often eliminates this step. The original appraisal from when the seller secured the loan is typically sufficient. This not only saves you money on appraisal fees but also speeds up the buying process, allowing for a smoother and quicker transaction.

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VA loan assumptions can significantly reduce closing costs. Since you are assuming an existing loan, many of the fees associated with originating a new mortgage are avoided. This can include lender fees, appraisal costs, and other charges typically incurred with a new loan. Reduced closing costs can make the home-buying process more affordable and less stressful.

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Military Member Buying in Mangilao, Guam  4. Easier Qualification Process

 

The qualification process for a VA loan assumption can be more straightforward compared to obtaining a new VA loan. While the buyer still needs to meet certain criteria, such as credit and income requirements, the process is generally less stringent. This can be particularly beneficial for buyers who may have slightly lower credit scores or who are concerned about meeting the stricter standards of a new mortgage application.

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By assuming a VA loan, you retain all the benefits associated with VA loans, including no private mortgage insurance (PMI). VA loans do not require PMI, which can be a significant cost-saving benefit. Additionally, VA loans typically have more favorable terms and protections for borrowers, ensuring you continue to benefit from these advantages.

 

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If the original loan was secured with a low-interest rate, assuming the VA loan can result in lower monthly mortgage payments compared to current market rates. This can improve your monthly cash flow and make homeownership more affordable. Lower monthly payments can also help you manage your budget more effectively, giving you more financial flexibility.

 

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When assuming a VA loan, the seller's VA entitlement remains tied to the loan until it is paid off. However, if you are a veteran or active-duty service member, you can restore the seller's entitlement by substituting your own entitlement. This ensures that the seller can regain their VA loan benefits for future use, while you can take advantage of the VA loan benefits for your new home in Guam.

 

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The VA loan assumption process can often be faster than securing a new mortgage. Since many steps involved in originating a new loan are bypassed, such as the need for a new appraisal and extensive underwriting, the closing process can be expedited. This can be particularly advantageous if you need to move quickly or are working within a tight timeframe.

 

Consider Packing A Generator To Avoid Inconveniences!

 

 

For veterans and active-duty military personnel looking to buy a home in Guam, a VA loan assumption can be an attractive option. With benefits such as lower interest rates, reduced closing costs, and easier qualification processes, VA loan assumptions offer a range of advantages that can make homeownership more accessible and affordable.

 

If you're considering purchasing a home in Guam, it's essential to explore all available options, including VA loan assumptions. By doing so, you can make an informed decision that best suits your financial situation and homeownership goals.

 

For more information on VA loan assumptions and how they can benefit you as a buyer, don't hesitate to reach out. As an A.I. Certified Agent™, I am here to help you navigate the home-buying process and take advantage of all available benefits.

 

 

1. U.S. Department of Veterans Affairs. "VA Home Loans." [va.gov](https://www.va.gov/housing-assistance/home-loans/)

 

2. Investopedia. "VA Loan Assumption: How It Works, Pros and Cons." [investopedia.com](https://www.investopedia.com/terms/v/va-loan-assumption.asp)

 

3. Military.com. "VA Loan Assumption: What to Know." [military.com](https://www.military.com/money/va-loans/va-loan-assumption.html)

 

4. The Mortgage Reports. "What is a VA Loan Assumption?" [themortgagereports.com](https://www.themortgagereports.com/39453/what-is-a-va-loan-assumption)

 

5. NerdWallet. "How to Assume a VA Loan." [nerdwallet.com](https://www.nerdwallet.com/article/mortgages/assume-va-loan)

 

6. Veterans United. "VA Loan Assumptions: A Detailed Guide." [veteransunited.com](https://www.veteransunited.com/va-loans/va-loan-assumptions/)

 

7. Home Buying Institute. "VA Loan Assumption: A Comprehensive Guide for Buyers." [homebuyinginstitute.com](https://www.homebuyinginstitute.com/va-loan-assumption/)

 

8. Bankrate. "VA Loan Assumptions Explained." [bankrate.com](https://www.bankrate.com/mortgages/va-loan-assumptions-explained/)

 

---

Leah del  Mundo

Your A.I. Certified Agent™ and 72Sold Trained Expert on Guam

The Ultimate Guide To Living In 76123, Fort Worth, Texas

A local Guam real estate agent is ready to help you find your next home!

Posted in Guam Home Buying
July 9, 2024

The 8 Advantages of Offering a VA Loan Assumption as a Home Seller in Guam

Essential Packing: 8 Must-Have Items for Your Household Goods Shipment to Guam

 

Selling a home can be a complex process, but if you're a VA home seller in Guam, offering a VA loan assumption to potential buyers can be an advantageous strategy. This process involves allowing the buyer to take over your existing VA loan, which can be appealing for many reasons. Here are eight, of many more,  benefits of doing a VA assumption as a Seller in Guam, and how it can make your home more attractive to buyers.

 

One of the primary benefits of offering a VA loan assumption is the potential to attract a broader pool of buyers. VA loans are highly desirable due to their favorable terms, such as no down payment requirements and competitive interest rates. By making your VA loan assumable, you open the door to a larger audience, including veterans and active-duty service members who might prefer this option over securing a new mortgage.

 

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VA loan assumptions can speed up the home-selling process. Since the buyer is taking over an existing loan, many of the steps involved in securing a new mortgage are bypassed. This can lead to a quicker closing process, which is beneficial for both the seller and the buyer. A faster sale means you can move on to your next home or investment sooner, reducing the time and stress associated with a prolonged selling process.

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The attractive terms of an existing VA loan, such as a lower interest rate, can make your home more appealing and potentially justify a higher asking price. Buyers may be willing to pay more for a home that comes with an assumable VA loan, especially if the current market interest rates are higher than the rate on your loan. This added value can give you an edge in negotiations and help you achieve a better return on your investment.

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Military Member Buying in Mangilao, Guam  4. Avoiding Early Payoff Penalties

 

If your VA loan has an early payoff penalty, selling your home through a VA loan assumption can help you avoid this fee. Since the buyer is assuming the loan rather than paying it off, the terms of the loan remain intact, and you are not penalized for paying off the loan early. This can save you a significant amount of money and make the selling process more cost-effective.

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For sellers, a VA loan assumption can simplify the financial transition to your next home. By transferring your existing loan to the buyer, you can avoid the hassle of settling the loan in full and then securing a new one for your next property. This continuity can make your financial planning more straightforward and reduce the stress associated with moving and managing multiple mortgages.

 

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Offering a VA loan assumption can be a powerful marketing tool. Highlighting this option in your listings and marketing materials can attract attention from qualified buyers who are specifically looking for VA loans. This unique selling point can differentiate your property in a competitive market, helping you stand out and attract serious buyers.

 

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When you offer a VA loan assumption, you retain your VA loan entitlement until the loan is fully paid off by the new buyer. This means that if the buyer defaults, your entitlement is still in place, offering you a layer of protection. Additionally, if the buyer is also a veteran or active-duty service member, they can substitute their entitlement for yours, allowing you to restore your full VA loan benefits for future use.

 

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By allowing a VA loan assumption, you can enhance the affordability of your home for the buyer. The buyer can take advantage of the existing loan's favorable terms, such as lower interest rates and the absence of private mortgage insurance (PMI). This can make your home more affordable and attractive, increasing the likelihood of a successful sale.

 

Consider Packing A Generator To Avoid Inconveniences!

 

 

Offering a VA loan assumption as a seller in Guam can provide numerous benefits, from attracting a broader pool of buyers to achieving a higher sales price and speeding up the selling process. It can also simplify your financial transition, serve as an effective marketing tool, and enhance the affordability of your home for buyers.

 

As the only 72Sold and AI-certified trained agent on Guam, I leverage advanced strategies and technology to ensure your home-selling process is smooth and successful. If you're considering selling your home and want to explore the benefits of a VA loan assumption, don't hesitate to reach out. Let's work together to make your home sale as efficient and profitable as possible.

 

 

1. U.S. Department of Veterans Affairs. "VA Home Loans." [va.gov](https://www.va.gov/housing-assistance/home-loans/)

 

2. Investopedia. "VA Loan Assumption: How It Works, Pros and Cons." [investopedia.com](https://www.investopedia.com/terms/v/va-loan-assumption.asp)

 

3. Military.com. "VA Loan Assumption: What to Know." [military.com](https://www.military.com/money/va-loans/va-loan-assumption.html)

 

4. The Mortgage Reports. "What is a VA Loan Assumption?" [themortgagereports.com](https://www.themortgagereports.com/39453/what-is-a-va-loan-assumption)

 

5. NerdWallet. "How to Assume a VA Loan." [nerdwallet.com](https://www.nerdwallet.com/article/mortgages/assume-va-loan)

 

6. Veterans United. "VA Loan Assumptions: A Detailed Guide." [veteransunited.com](https://www.veteransunited.com/va-loans/va-loan-assumptions/)

 

7. Home Buying Institute. "VA Loan Assumption: A Comprehensive Guide for Buyers." [homebuyinginstitute.com](https://www.homebuyinginstitute.com/va-loan-assumption/)

 

8. Bankrate. "VA Loan Assumptions Explained." [bankrate.com](https://www.bankrate.com/mortgages/va-loan-assumptions-explained/)

 

---

Leah del  Mundo

Your A.I. Certified Agent™ and 72Sold Trained Expert on Guam

The Ultimate Guide To Living In 76123, Fort Worth, Texas

A local Guam real estate agent is ready to help you find your next home!

Posted in Guam Home Selling
July 4, 2024

10 Things NOT to Do When Under Contract to Buy a Home on Guam

Essential Packing: 8 Must-Have Items for Your Household Goods Shipment to Guam

 

Buying a home is an exciting milestone, especially in a beautiful location like Guam. However, once you're under contract, there are crucial things to avoid to ensure a smooth transaction. Here are ten things you should NOT do when buying a home on Guam.

Opening a new credit card can significantly impact your credit score. Lenders look at your credit activity closely, and a new line of credit can raise red flags. Even if the card comes with appealing rewards or a zero-interest offer, hold off until after your home purchase is complete.

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It can be tempting to buy new furniture or appliances for your new home, but large purchases can alter your debt-to-income ratio. Lenders may reassess your financial situation if they see significant changes in your spending patterns, which can delay or even derail your mortgage approval.

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Stability is key when you're applying for a mortgage. Changing jobs during the process can be risky, as lenders prefer borrowers with steady employment. If a job change is unavoidable, consult with your lender to understand the potential impact on your loan approval.

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Military Member Buying in Mangilao, Guam  4. Don't Make Late Payments

Your payment history is a critical component of your credit score. Late payments on your existing debts can lower your score and negatively affect your mortgage application. Ensure all bills are paid on time to maintain your creditworthiness.

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Closing credit accounts can decrease your credit score by reducing your overall available credit. It also impacts your credit utilization ratio, which is the percentage of your total credit limits that you're using. Keep all accounts open until after your home purchase is finalized.

 

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Co-signing a loan increases your debt liability, which can affect your debt-to-income ratio. Even though you're not the primary borrower, lenders will consider the co-signed loan as part of your financial responsibilities, which can complicate your mortgage approval process.

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Lenders often need additional documentation or information during the mortgage approval process. Ignoring these requests or delaying your response can slow down the process and jeopardize your loan approval. Stay responsive and provide all requested information promptly.

 

Consider Packing A Generator To Avoid Inconveniences!

Lenders track your financial stability through your bank accounts. Changing bank accounts during the mortgage approval process can create complications, as the lender may need to reassess your financial situation. Keep your existing accounts open and avoid making significant changes.

 

Consider Packing A Generator To Avoid Inconveniences!

Taking out a new loan, whether it's for a car, personal expenses, or another purpose, can significantly alter your debt-to-income ratio. Lenders evaluate your ability to manage your existing debt along with a new mortgage, and additional loans can affect their decision.

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Loaning money to friends or family might seem like a kind gesture, but it can reduce the cash you have available for closing costs and your down payment. Lenders require proof that you have sufficient funds to cover these expenses. Any reduction in your cash reserves can jeopardize your ability to close on your new home.

 

Consider Bringing Recreational & Hobby Items When Packing For Guam!

 

 

 

Avoiding these ten common pitfalls will help ensure a smooth and successful home-buying experience on Guam. Remember, your financial stability and creditworthiness are under close scrutiny until your home purchase is complete. Making cautious and informed decisions can prevent unnecessary delays and complications.

As an A.I. Certified Agent™, I am committed to using the latest technology and strategies to help you navigate the home-buying process smoothly. From understanding the nuances of the local market to leveraging advanced artificial intelligence tools, I am here to support you every step of the way.

 

If you have any questions or need further guidance on buying a home in Guam, don't hesitate to reach out. Let's ensure your home-buying journey is as seamless and stress-free as possible.

 

 

Leah del Mundo

 

Your Guam A.I. Certified Agent™

The Ultimate Guide To Living In 76123, Fort Worth, Texas

A local Guam real estate agent is ready to help you find your next home!

Posted in Guam Home Buying
July 3, 2024

Navigating Guam’s Real Estate Market: Comprehensive Forecast and Strategic Insights for Future Buyers and Sellers

Essential Packing: 8 Must-Have Items for Your Household Goods Shipment to Guam

As the Exclusive Certified 72Sold Program Director for Guam and the first AI Certified Agent on the island, I'm thrilled to share my in-depth insights into the future of our local real estate market. The past few years have brought dynamic changes, influenced by both global trends and specific local developments.

 

Whether you are looking to sell your home quickly and for the most money or considering investing in property on our beautiful island, understanding the market's trajectory is crucial. Here's an extended look at what you can expect in the coming years:

 

The Guam real estate market has consistently shown resilience and growth. A significant driver of this trend is the strong military presence and the influx of off-island buyers. This sustained demand, coupled with limited inventory, is expected to continue driving property prices upward.

 

For homeowners considering selling, this trend presents a prime opportunity to maximize returns. Buyers, on the other hand, should act swiftly to secure properties before prices escalate further.

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Interest rates have been a focal point in recent discussions and are crucial in shaping real estate market trends. Currently, mortgage interest rates are higher than 6.5%, which can impact affordability for many buyers . These higher rates mean that mortgage payments are not as low as they have been in the past, making it more challenging for some buyers to enter the market.

 

However, for Sellers, understanding this environment is key. While higher interest rates can limit the buyer pool, motivated buyers are still active in the market, often driven by the need for relocation or investment. This context highlights the importance of strategic pricing and targeted marketing to attract serious buyers despite the interest rate environment.

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Guam's strategic military significance profoundly impacts the local real estate market. Military relocations ensure a consistent flow of potential buyers and renters, creating a stable demand for properties.

 

If you're selling a home, tapping into this market segment is highly beneficial. Our 72Sold system is designed to identify all possible buyers and create a competitive environment, ensuring quick sales at the best price. We particularly cater to military families and personnel, leveraging our expertise to meet their unique needs.

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Preparing for Island Life: Must-Have Items for Your Guam Move Infrastructure and Development in Guam

 

Ongoing infrastructure projects and new developments are set to enhance the island’s appeal significantly. From road improvements to new commercial ventures, these advancements will likely attract more investors and boost property values.

 

Staying informed about these projects can help you make savvy investment decisions. For example, areas experiencing infrastructure upgrades may see a spike in property demand, making them lucrative investment spots. Additionally, new commercial developments can increase the desirability of nearby residential properties.

 

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While the market shows promising growth, it’s essential to prepare for potential volatility. Global economic conditions, geopolitical events, and natural disasters can all impact the real estate market.

 

However, with the right strategies and expert guidance, you can navigate these challenges effectively. Our approach focuses on competitive pricing, targeted marketing, and innovative buyer-finding strategies to mitigate risks and capitalize on opportunities. By staying proactive and adaptable, you can turn market fluctuations into advantageous situations.

 

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Navigating the legal and tax landscape of real estate transactions in Guam is crucial. Whether you’re selling or buying, compliance with local regulations ensures a smooth process. We maintain strong relationships with lenders, title companies, home inspectors, contractors, and appraisers to provide comprehensive support throughout your real estate journey.

 

Understanding these legal and tax nuances can prevent potential pitfalls and facilitate a seamless transaction. Additionally, leveraging tax benefits associated with real estate investments can enhance your financial outcomes.

 

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The recent National Association of Realtors (NAR) settlement has significant implications for the real estate market, including here in Guam. The settlement, aimed at increasing transparency and fairness in real estate transactions, introduces changes that affect commission structures and disclosure requirements.

 

For Sellers, this means greater clarity on the costs associated with selling their property and potentially lower commission fees. Buyers can expect more straightforward and transparent processes when purchasing a home. These changes emphasize the importance of working with a knowledgeable and compliant real estate professional to navigate the new landscape effectively.

 

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Beyond the financial and logistical aspects, real estate decisions profoundly impact lifestyle and community. Guam offers a unique blend of cultural richness, natural beauty, and strategic location. Investing in property here means not just a financial decision but a commitment to a vibrant community.

 

As a homeowner or investor, you're contributing to and benefiting from this thriving ecosystem. Embracing the local culture, engaging with community initiatives, and supporting sustainable development are integral to making the most of your real estate journey in Guam.

 

Consider Packing A Generator To Avoid Inconveniences!

 

 

The real estate industry is rapidly evolving with technological advancements. Virtual tours, AI-driven market analysis, and digital transaction platforms are transforming how we buy and sell properties. Staying abreast of these innovations can give you a competitive edge. As the first AI Certified Agent on Guam, I leverage cutting-edge technology to enhance marketing efforts, streamline transactions, and provide clients with real-time data insights.

 

Embracing these tools ensures a more efficient, transparent, and successful real estate experience. Buyers benefit from precise property matches and personalized recommendations, while sellers enjoy optimized marketing strategies that attract the right buyers quickly and effectively.

 

Consider Bringing Recreational & Hobby Items When Packing For Guam!

The Guam real estate market is poised for continued growth and opportunity. By staying informed and leveraging expert strategies, you can make the most of this dynamic landscape. Whether you're looking to sell your home quickly and for the most money or seeking to invest wisely, our AI Certified Agent advantage ensures you achieve your real estate goals.

 

Ready to make your next move in the Guam real estate market? Contact us today to learn how we can help you succeed.

 

Feel free to reach out if you have any questions or need personalized advice. Let's make your real estate journey in Guam a successful and rewarding experience!

The Ultimate Guide To Living In 76123, Fort Worth, Texas

A local Guam real estate agent is ready to help you find your next home!

June 14, 2024

8 Things To Bring In Your Household Goods Shipment To Guam

Essential Packing: 8 Must-Have Items for Your Household Goods Shipment to Guam

Moving to Guam requires careful planning, as this beautiful island destination presents exciting opportunities and unique challenges. One of the most integral tasks in preparing for your move is deciding what household goods to include in your shipment.

To help you get started, we've compiled a list of eight items that will make your transition smoother and your new life more comfortable. This guide offers preparation tips and highlights hard-to-find essentials on the island, ensuring you have everything for a stress-free move to Guam.

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Posted in Guam Home Buying
May 13, 2024

Facing The Selling Struggle: Effective Solutions For A Stubborn Market

Facing The Selling Struggle: Effective Solutions For A Stubborn Market

Have you had difficulty selling your home in Guam despite putting in significant effort? It's not uncommon, in today’s market with high interest rates, for properties to linger on the market longer than expected.This does cause frustration and uncertainty for homeowners. Despite meticulous planning and numerous showings, some properties just won't attract the right  buyer. 

When faced with this situation, it's essential to collaborate with your trusted realtor to reassess your approach, identify potential obstacles, and implement targeted solutions to revive buyer interest and expedite the sale process. This article explores practical steps and strategies to address common issues hindering the sale of your home, from adjusting pricing strategies and enhancing property presentation to considering alternative options.

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Posted in Guam Home Selling
April 5, 2024

The Importance Of Using A Buyer’s Agent

The Importance Of Using A Buyer’s Agent

Navigating the real estate market in Guam, especially for newcomers, can be a complex and daunting task. As many individuals relocate to Guam for work, often in military or contractor roles supporting the military, the need for expert guidance becomes paramount. This is where a Buyer’s Agent comes into play. A Buyer’s Agent is a dedicated professional available and eager to support clients throughout every stage of the home-buying journey. Their primary responsibility is to represent and protect the interests of the Buyer, ensuring they are not taken advantage of in unfamiliar territory. In a unique market like Guam, understanding the local culture, processes, and nuances is crucial.

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Posted in Guam Home Buying
March 14, 2024

Should You Sell Or Rent Your Guam Property? 6 Things To Consider

Should You Sell Or Rent Your Guam Property? 6 Things To Consider

Deciding whether to sell or rent out your property in Guam can be a daunting task, fraught with numerous considerations and potential implications. The dilemma presents itself starkly: should you part ways with your property for a lump sum or opt for the steady stream of income through renting? It's a decision that demands careful evaluation of the various factors at play. Before making a choice, it's essential to weigh the advantages and disadvantages of both options to determine which aligns best with your financial goals and circumstances.

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Posted in Guam Home Selling
Jan. 12, 2024

5 Things To Do In Tumon, Guam

5 Things To Do In Tumon, Guam

  • Tumon, located on the northwest coast of the United States along Tumon Bay, is a lively district also where most of the hotels are located with many bars and restaurants.
  • Part of the municipality of Tamuning, Tumon serves as the heart of Guam's bustling tourist industry.
  • The district boasts a beautiful palm-fringed promenade, dotted with lavish beach hotel resorts
  • Investors interested in investment homes find Tumon appealing because it draws a lot of military members looking to have fun on the island.
  • The military community, including homebuyers and those seeking activities, is attracted to Tumon.
  • Tumon is a starting point for military individuals looking for Things To Do In Guam.

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Posted in Guam Home Selling
Jan. 3, 2024

Guam 2023 Year-End Market Report