THE KATUNGU TEAM
CREDOTRUST REAL ESTATE GROUP
“Not having a prenuptial
agreement leaves unmarried
couples at the mercy of state
divorce laws…”
In This Issue
Important Considerations
for Unmarried Couples
Buying a Home Together
Local Housing Market
Update
Interest Rate Update
What are Mello-Roos
Special Tax Districts?
Customer Success
Stories: Principle of
Offense
Discounted Property
Maintenance Inspection
Happy Father’s Day
Issue 2 Believe and Put Your Trust in Us June 2018
Important Considerations for Unmarried
Couples Buying a Home Together
The National Association of Realtors (NAR) reported that since 1981,
the highest record of first time homebuyers who are unmarried
couples was in 2017. With homes becoming less affordable,
unmarried couples are considering buying homes together to
increase their buying power. However, there are some risks they
should consider and minimize during the process of planning and
buying a home together. Below are three important considerations:
Sign a Prenuptial Agreement for the Home: A prenuptial
agreement, commonly known as a prenup, is no longer only for rich
people who want to protect their assets before getting married. It is a
legally binding document that may be signed by a couple before
getting married. The couple should discuss and sign a prenuptial
agreement stating their percentage of co-ownership interest in the
home. Not having a prenuptial agreement leaves unmarried couples
at the mercy of the state divorce laws under common-law marriage if
their relationship is unsuccessful.
Choose Proper Ownership Title: Three common real estate
property ownership titles in Colorado are joint tenancy (equal
ownership of 50/50 split), tenant in severalty (full sole ownership),
and tenant in common (unequal ownership, e.g., 65/35). For more
information on ownership titles visit www.CredoTrustHomes.com,
click on buying and homeownership information, and search for April
2, 2018 blog titled ‘Common Ways for Holding Title’.
Involve Parents with Discretion: Involving parents when
unmarried couples are buying a home may be a source of confusion
and stress because
parents may be
uncertain about the
future possibility of
the couple getting
married. Therefore,
involve parents with
discretion.
We Contribute 10% of Our Commission as an Incentive for Using Our Services
Information is deemed reliable as of the date of printing. It should be used for information only, not as a realtor’s advice. The Katungu Team and
CredoTrust Real Estate Group are not liable for its use.
Local Home Prices and Affordability Update
The increased cost of building supplies compiled with increased
population and demand for housing, and low supply of homes has
caused the cost of new and resale
homes to steadily increase. The
month-to-month single family/patio
homes activity of new listings in May
2018 increased by 5.5%, the average
sales price increased to $355,927
which is up by 11.2% when compared
to $319,969 in May 2017, and the
median sales price increased to
$317,250 which is up by 13.3% from
$280,000 in May 2017. Refer to data
table for May 2018 average and
median prices for single family/patio
homes by area. For condos/
townhomes, the average sales price
in May 2018 increased to $225,266
which went up by 18.6% from
$189,914 in May 2017, and the median sales price increased to
$210,000 which went up by 13.5% from $185,000 in May 2017.
What are Mello-Roos Special Tax Districts?
Mello-Roos Districts commonly known
as special tax districts are becoming
popular in Colorado Springs as land
developers, and home builders
expedite rate of developments and
constructions to meet the low supply
and high demands of housing. A Mello
-Roos District is a Community
Facilities District that imposes special
property tax on homeowners who live
within the district. This district has
chosen to seek public financing
through the sale of bonds to finance
certain public improvements and
services.
Uses of Mello-Roos Tax
The tax is used to pay for principal
and interest on the bond used for
improving streets, water, sewage and
drainage, electricity, infrastructure,
schools, parks and police protection to
newly developed areas.
Determining Mello-Ross Tax
Most special taxes levied on
properties within these districts have
been structured by density of
development, square footage of
construction, etc. The amount of tax
may vary year-to-year. For more
information, read our blog at
www.CredoTrustHomes.com. Mortgage Interest Rates Update The period between 2005-2006 was a record breaking real estate market
with interest rates hovering over 6%. According to Bankrate’s weekly survey
of large mortgage lenders reported on May 23, 2018, the average interest
rate for a 30-year fixed mortgage is at about 4.8% as compared to 4.13% a
year ago during the same period. It is important to emphasize that for every
1% increase in mortgage interest rates, it reduces the buying power by 10%
for a mortgage loan with the same monthly payment.
Area Average
Price
Median
Price
Black Forest $638,135 $517,275
Briargate $424,490 $412,180
Central $289,250 $269,250
East $279,760 $265,354
Fountain Valley $271,935 $269,450
Manitou Springs $401,350 $385,000
Marksheffel $344,642 $342,550
Northeast $330,592 $310,000
Northgate $483,651 $435,000
Northwest $441,864 $413,750
Old Colorado City $337,938 $340,000
Peyton $469,530 $495,000
Powers $305,408 $300,000
Southeast $229,059 $235,000
Southwest $455,130 $380,700
Tri-Lakes $557,731 $528,500
West $305,464 $305,000
Our Customer Success Stories: Principle of Offense
One of the enemies of success that might trap you in your
comfort zone is a natural tendency to do the same things
in the same way you have become accustomed. To vote
yourself off the comfort island, you should practice the
Principle of Offense. This principle states that you should
maintain continuous and vigorous action to seize, retain
and exploit the opportunities as they cross your life’s path.
One of our past military customers, James and Lori,
displayed this principle when they bought their home.
One day James and Lori contacted The Katungu Team in
response to an online advertisement for a single family
home that we were marketing for either sale or lease.
While viewing the property, they mentioned to Mary that
the first time they saw the property on the online, they
committed to make it their family home. Immediately after
viewing the property, they completed and submitted a
lease application. While conducting the tenant screening
process, one of them was eligible to buy a home using a
Veterans Affairs (VA) loan which provides 100 percent
financing with zero down payment. During our meeting to
execute a lease agreement, we requested them to select
either a defense strategy to continue being tenants or an
offense strategy to become homeowners. After a brief
discussion, they decided to become homeowners. We
gave them an educational PowerPoint presentation
related to the benefits and process of buying a home and
addressed their questions. Also, we scheduled an
appointment to meet with one of our preferred lenders to
get them preapproved for a VA loan. We executed a
month-to-month lease agreement which enabled them to
process required documents to close their home and
become homeowners.
James and Lori successfully became homeowners
because they used the Principle of Offense which
motivated them to think outside the box and capitalize on
the opportunities that were available to them.
James, Lori and their Family standing outside their home
Discounted Professional
Home Maintenance Inspection
The A2Z Inspection Services is offering
discounted home maintenance inspections for
$175. Below is a brief description of what the
inspection involves:
A2Z Property Maintenance Inspection involves
visually inspecting the general condition of the
roof and structure, interior/exterior condition,
electrical panel, all available outlets, plumbing,
water heater,
visible signs of
leakage (filling
sinks/tubs,
excluded). Visually check/inspect heating system
(no operational tests performed). Appliances
excluded. Maintenance Inspection Report will
include ONLY issues of concern that need
immediate attention or regular maintenance
found during the inspection. Standard Inspection
Agreement MUST be electronically signed prior
to inspection. Contact us at 719-548-1717.
“The Principle of Offense states that you should
maintain continuous and vigorous action to seize,
retain and exploit opportunities as they cross
your life’s path ...”
Contact Us
Please contact us
and visit our
websites for more
information about
our real estate
services.
Namati Katungu, Realtor®, GRI,
Eco-broker, MRP, LHP, QSC,
CDPE
The Katungu Team
CredoTrust Real Estate Group
Believe and Put Your Trust in Us
Text/Voice: (719) 231-5174
Visit us on the websites at:
www.CredoTrustHomes.com
www.KatunguTeam.com
The Katungu Team
CredoTrust Real Estate Group
Believe and Put Your Trust in Us
P.O. Box 63931
Colorado Springs, CO 80962
PLACE STAMP HERE
“There is nothing good or bad, but thinking makes it so.” ~Shakespeare~
“A good father is one of the most unsung, unpraised,
unnoticed, and yet one of the most valuable
assets in our society.”
~Billy Graham~