Investing in Guam’s real estate has long been a popular strategy for individuals seeking to build wealth and secure their financial future. One particular approach gaining traction among potential buyers is purchasing a property to live in now and rent out later. This dual-purpose investment appeals to a wide range of individuals on the island, including those looking for investment homes and military personnel seeking a strategic move.
Military personnel, in particular, have shown a growing interest in this approach, often searching for properties on Guam before being stationed here. If you're considering such a venture, there are several crucial factors to bear in mind. Throughout this article, we’ll explore ten essential things you should know when buying a property to live in now and rent later, ensuring that you make an informed decision and maximize your investment potential.
Top Places to Live in Guam
As more and more people consider Guam as a potential investment destination, it’s important to know where the best places to live are. With 19 beautiful villages making up this wonderful island oasis, each of them has something special to offer in terms of surroundings and lifestyle.
Let's take a look at some of the most popular residential areas for buying and selling homes in Guam.
Barrigada, a village in the United States territory of Guam, is primarily known as a largely residential municipality. Positioned to the south of the Antonio B. Won Pat International Airport, it offers a convenient location for residents. It’s in the Central part of Guam so many find this location desirable.
The housing options in Barrigada include apartments, single-family homes, and multi-family dwellings, catering to various lifestyles and preferences. For DoDEA, this is part of the Andersen school district. Barrigada benefits from an educational system that supports the growing community's needs.
Nestled on the western shore of the United States territory of Guam, Tamuning, also known as Tamuning-Tumon-Harmon, features a wide variety of homes for residents to choose from, catering to diverse preferences and budgets, ranging from luxurious to more budget-friendly options.
As one of the most dynamic and rapidly growing areas in Guam with the majority of hotels, restaurants, and businesses on Guam located here, the village provides a bustling and vibrant atmosphere. This makes it an attractive place to live for individuals and families alike. With its warm and tropical climate, boasting year-round temperatures in the high-80s, Tamuning provides a pleasant and inviting environment for its residents to enjoy.
It's no secret that Dededo is a popular spot for military families, thanks to its proximity to the Air Force Base and Camp Blaz. But did you know that Dededo also offers a fantastic mix of housing options? Whether you're looking for an apartment, townhome, or single- or multi-family dwelling, you're sure to find something that suits your needs here.
And with so many people calling Dededo home, you can bet that the village offers some of the best amenities around. From shopping and dining to ethnic grocery stores, nearby beaches, and hiking trails, there's always something new to explore in this bustling part of Guam.
Situated at the heart of Guam's tourism industry, Tumon stands as a prominent village celebrated for its stunning Tumon beach adorned with palm trees. Acting as a focal point for visitors and locals alike, Tumon offers an array of shopping centers and entertainment opportunities. The village's vibrant nightlife adds to its allure, providing residents and tourists with a lively and exciting atmosphere.
Falling under the Andersen school district, Tumon's real estate predominantly comprises condos, making it an ideal destination for those seeking a resort-style living experience close to the action.
Living in Yigo, Guam offers a delightful experience with its picturesque hiking trails and secluded beach access, providing residents with opportunities to immerse themselves in nature's beauty. As a quaint village, Yigo is known for its reasonably priced housing options, making it a popular choice among military families.
The village's single-family dwellings are characterized by spacious lots and greater distance between neighbors, offering a sense of privacy and tranquility for those seeking a peaceful residential setting in Guam.
In addition, Talofofo, Santa Rita, Piti, Sinajana, and Chalan Pago are also among the best places to live in Guam due to their proximity to the Navy Base, offering convenient access to employment opportunities and support services for military personnel and their families. Residents of these areas can enjoy a unique blend of suburban living coupled with the vibrancy of local culture, as well as stunning coastal views and recreational activities, making them attractive and well-rounded communities.
10 Things You Should Know About Buying a Property to Live in Now and Rent Later
If you're considering buying a property on Guam to live in now and rent out later, there are several important factors you should keep in mind. Listed below are 10 things you should know about buying a property to live in now and rent out later.
#1 Market Analysis
Conducting a market analysis is essential when buying a property to live in now and rent later on in Guam for several reasons. Firstly, it allows potential buyers to assess the local real estate market's current condition and trends, ensuring that the investment is made under favorable conditions.
By researching areas with high rental demand, strong job growth, and potential property value appreciation, buyers can identify regions that offer better prospects for generating rental income and long-term profitability.
Another option is to work with a realtor who knows and shares local market information constantly with the community. This will allow you to be informed about potential opportunities as well as the current market conditions.
#2 Financing Options
Exploring financing options is crucial when buying a property to live in now and rent later on the island of Guam. By considering various loans, including VA and VA Assumption loans for military personnel, as well as USDA, FHA, ARM, and more, you can find the best fit for your financial situation.
Additionally, calculating your expected rental income allows you to assess whether it will sufficiently cover mortgage payments, property taxes, insurance, and maintenance costs, ensuring a sustainable and successful investment strategy.
#3 Location Selection
Choosing the right location is crucial when purchasing a home to live in now and rent later in Guam. A well-chosen location, featuring amenities such as good schools, shopping centers, and recreational facilities, will attract tenants and ensure a consistent rental demand.
Moreover, considering the property's proximity to your workplace and essential services enhances convenience and overall livability. For those targeting military renters and buyers, prioritizing areas close to the bases becomes essential, meeting their security concerns and maximizing the property's rental potential.
#4 Property Type
Opting for the right style property holds significant importance when purchasing a house to live in now and rent later in Guam. By selecting the type of property that best suits your investment strategy, such as single-family homes, condos, townhouses, or multi-unit properties, you can tailor your choice to align with maintenance preferences, rental income potential, and the target tenant demographic.
#5 Rental Market Research
Conducting rental market research is key to ensuring that the property will generate consistent rental income. Researching potential tenant profiles, such as military personnel and their families, medical professionals, students, and tourists helps identify the target demographic more precisely. As well as investigating prevailing rent prices in similar properties allows you to determine the most suitable rental rate for your investment. If you’re interested in renting to military personnel, ask a realtor who has this niche as their forte to provide an in-depth market analysis.
#6 Property Management
Property management is a crucial step when buying a home to live in now and rent later in Guam. Deciding whether to manage the property yourself or hire a professional property management company is essential. Outsourcing responsibilities like tenant management, maintenance, and rent collection can save time and effort, allowing you to focus on other aspects of your life and investment.
When considering potential property managers, speak with references of current homeowners under their management. This provides valuable insights into their responsiveness, access to contractors for repairs, regular property inspections, and timely and detailed expense reports ensuring you find a reliable and competent manager for your rental property.
#7 Rental Laws and Regulations
Familiarizing yourself with the rental laws and regulations in Guam is essential when renting out a property. Upholding local laws ensures compliance with tenant protection standards, reduces potential legal disputes, and protects your rights as a landlord.
Some crucial regulations include rent control, tenant screening processes, rental agreement standardization, security deposit limits, eviction rules, procedures, and disclosure requirements.
#8 Long-Term Investment Strategy
Developing a long-term investment strategy is critical to ensuring that buying a property in Guam to live in now and rent out later is successful. Consideration of factors such as rental income, mortgage payments, maintenance expenses, tenant profiles, area growth prospects, and other details allows you to assess the likelihood of your investment achieving its desired outcomes over the long term.
By adhering to a well-defined plan, potential investors can also increase their chances of success and optimize the return on investment by carefully monitoring the progress of the property concerning their established goals.
#9 Cash Flow Analysis
Conducting a cash flow analysis is key when making an investment in a property to live in now and rent out later in Guam. Estimating the expected monthly income, expenses, and tax liabilities provides valuable insights into the profitability of the asset over time. By considering these factors, buyers can determine if they have sufficient funds to cover mortgage payments and other costs, while also providing a safe return on their investment.
#10 Future Planning
Consider any future changes in your circumstances that may affect your ability to manage the property or continue renting it out. Life events such as job relocation, changes in family size, or retirement plans should be factored into your decision-making process. Having a plan for the future allows you to ensure that your investment is sustainable and profitable over the long term, providing peace of mind and reassurance.
By keeping these 10 key points in mind when buying a property in Guam to live in now and rent later, potential investors can maximize their chances of making a successful purchase. Following this advice will provide valuable guidance on the process of becoming a landlord and provide insight into the necessary steps for making a sound investment that will continue to generate income over time.