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

KatunguTeam@gmail.com

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~