Living
Condo, co-op policies protect your investment
To rent or buy? Depends on your situation
By SAMMY DWECK
With a homeownership rate at 45 percent, Washington is home to fewer homeowners than any of the 50 states, even New York, which has a homeownership rate of 54 percent. Not only are D.C. resident nomads less likely to buy a home, but they sometimes are apprehensive of homes’ rental policies in anticipation that they need to lease out their place, particularly a condo.
Rental policies exist in some buildings and govern how long you can rent your unit and how many units in a building can be rented at once. Buyers often imagine keeping a property for decades as an investment, but they sometimes neglect to consider that their next investment will likely require the equity (and profit) from their first home.
The rental restrictions some buyers reel against actually protect their investments. Lower “investor ratios,” meaning more owner-occupants usually come with the substantial perk of a well-maintained building and keep financing flowing to the building. Last week, my client and I stumbled upon a darling property near Logan Circle but we both noticed that the dozen-unit building seemed well overdue for a facelift. As it turns out, 75 percent of the units in the building were leased. Absentee owners typically don’t have a vested interest in spending on maintenance and improvements until the roof starts caving in. My client decided to pass on this property in favor of one in a building that was better cared for.
Condos have traditionally provided more rental flexibility than cooperatives, but this is changing as condo boards smarten up in response to the challenges of today’s tighter financing climate as well as complaints from owners’ occupants about unruly tenants and neglected hallways. Limiting the search to condos ignores the inventory and options that come with a whole segment of the market. Co-ops can make a great home for first-time buyers. For some, a co-op evokes the idea of a fussy, restrictive Old New York institution that excludes people and controls the way you live — oh, and you can’t rent it. This is a misperception, particularly in Washington.
Some agents are not as well-versed in co-ops as they are in condos and choose to direct clients away from them rather than explaining the merits of a different kind of ownership. In fact, before condos ever existed in D.C. in the early 1970s, co-ops were the only way to own an apartment unit in Washington. Co-ops tend to have rental restrictions to preserve the cooperative character of the building but also to protect owners’ mortgage interest tax deductions and D.C. Homestead Exemptions.
Co-ops can be fabulous homes and wonderfully advantageous tax vehicles for the right purchasers. In addition to generally coming with much lower property taxes resulting in a reduced overall monthly cost of ownership, compared to condos, you’ll usually get a lot more square footage in a co-op for the same price as a condo in the same neighborhood. And you can generally rent them – regulations vary from building to building but you can be assured that tenants will be more qualified and sometimes better behaved than condo tenants. The cooperative board’s requirement for approval adds a layer that results in a lower overall incidence of short sales and foreclosures in a building, which help protect the value of other units. Fewer delinquencies in payment of maintenance charges balance the building’s budget. Closing costs are lower as individual shareholders in cooperatives do not have to buy title insurance (about 1 percent of the purchase price).
So, buyers, whether condo or co-op, don’t write off buildings just because of leasing policies. Those policies can do wonders to protect the quality of life and financials of your building and when you move up, you are probably going to want your cash anyway.
Sammy Dweck of The Amber & Sammy Group with Evers & Co. Real Estate, Inc., is a licensed real estate agent specializing in townhouse, condo and co-op sales inside the Beltway. Reach him at G[email protected] or 202-716-0400.
Real Estate
Snatching your dream home in D.C. this winter
A good time to get a deal during slower season
If you’re thinking about planting roots in the DC Metro, then the winter months are a time when you can get a good deal during a slower time in the market. D.C. isn’t just for politicians and monuments; it’s a city brimming with diverse neighborhoods, chic eateries, and more rainbow flags than you can shake a stiletto at. But before you slip into those house-hunting boots, let’s make sure you’re well equipped for the real estate game in our nation’s capital.
1. Credit Check. Before you even start ogling those gorgeous row houses in Capitol Hill or swooning over condos in Logan Circle, make sure your credit score is ready. Lenders love to see a credit score that’s as high as my hair. If it’s looking a little low, then pay down those cards and keep your balances low.
2. Budget Realness. We all love a little splurge now and then (those D.C. brunches aren’t cheap), but buying a home is no time for financial fantasy. Work out your budget and know what you can afford monthly. Factor in those hidden costs like HOA fees and property taxes. Stay within your budget so you can keep rocking those designer threads without a sweat.
3. Location, Location, Location! D.C. is all about neighborhoods with character. Are you more of a Dupont Circle fan or perhaps Petworth? Maybe you fancy the historic vibes of Georgetown or the up-and-coming cool of Navy Yard. Each neighborhood has its own vibe and price tag, so do your homework and figure out where you fit in. Pro tip: Visit at different times of day to really feel the neighborhood’s pulse.
4. Find a Real Estate Agent. Find yourself a real estate agent who not only knows the market but also gets you — someone who can dish out honest advice and help you avoid any missteps. The right agent will be your guide, confidante, and maybe even your future brunch buddy. Remember, you’re in this together, so choose someone who’s as excited about finding your dream home as you are.
5. Mortgage Pre-Approval – The Golden Ticket. Nothing says “I’m serious” like a pre-approval letter from your lender. It’s the ultimate accessory to your house-hunting outfit, giving sellers that warm, fuzzy feeling that you’re not just window shopping. Plus, it helps you know exactly how much home you can afford, so you’re not falling head over heels for something out of reach.
6. House Hunting: The Fun Part! Time to put on your walking shoes and start touring. Don’t be afraid to ask questions, take notes, and envision yourself hosting fabulous dinner parties in these spaces. But be prepared to act fast. D.C.’s real estate market moves quicker than a “RuPaul’s Drag Race” elimination round, so if you find “the one,” don’t hesitate to make an offer.
7. Inspection, Baby. Once you’ve got an offer accepted, it’s time for the home inspection. Think of it as the all-important makeover montage. You want to uncover any issues before they become your problems. Trust your inspector and get those deets — everything from the roof to the basement needs a thorough once-over.
8. Closing Day – You’ve made it. The grand finale! You’ve done the work, and now it’s time to close the deal. Gather your paperwork, bring your ID, and maybe wear something that screams “I’m a homeowner!” After the signatures and happy tears, the keys are yours. Pop the Champagne and toast to your new fabulous life in D.C.
Final Thought: Love is Love, and Home is Home. Remember, your home should be a place where you feel comfortable, safe, and fabulous. Whether you’re single, partnered, or part of a chosen family, the D.C. Metro offers a vibrant, inclusive community that’s ready to welcome you with open arms. So go out there and claim your slice of this iconic city — you’ve got this.
Justin Noble is a Realtor with Sotheby’s International Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin provides white glove service at every price point. Reach him at 202-503-4243, BurnsandNoble.com or [email protected].
Real Estate
2024 D.C. residential real estate market in review
Insights and trends for the LGBTQ community
As 2024 ends, the residential real estate market reflects a year of notable shifts, with both progress and setbacks impacting LGBTQ homebuyers and sellers. While strides have been made in fostering inclusivity in some areas, the overall landscape has grown increasingly complex. The political climate, coupled with emerging challenges to diversity, equity, and inclusion (DEI) programs, has significantly influenced the housing market and the LGBTQ+ community’s experiences within it.
Impact of Political and Social Shifts
The incoming Trump administration has signaled a rollback of DEI initiatives across various industries, and housing is no exception. Efforts to reduce funding for fair housing programs and weaken protections against discrimination have raised concerns for LGBTQ individuals seeking equitable access to housing. Many previously inclusive initiatives in real estate development and local government policy may be scaled back or abandoned altogether, creating a climate of uncertainty.
Despite these challenges, organizations like GayRealEstate.com continue to advocate for LGBTQ buyers and sellers, providing a critical safety net in an increasingly polarized environment.
Trends for LGBTQ Buyers, Sellers in 2024
- Increased Caution in Relocation Decisions:
LGBTQ+ individuals and families have grown more deliberate in choosing relocation destinations. States with strong anti-discrimination protections, such as California, New York, and Massachusetts, remain top choices, while states perceived as less LGBTQ+ friendly have seen a decline in migration.
- Emergence of “Safe Zones”:
Many LGBTQ+ buyers are seeking out neighborhoods and cities that actively uphold inclusivity despite national trends. These “safe zones” often feature strong community support and resources, but their limited availability can lead to higher housing costs.
- Barriers to Homeownership Persist:
Discrimination in lending and housing remains a significant challenge. If you experience discrimination in lending or housing, it’s essential to report it and seek support.
At the Local Level: Report incidents to your city or state’s Fair Housing Office or Human Rights Commission. To find your local office, check your city or state government website for contact details.
At the National Level: U.S. Department of Housing and Urban Development (HUD):
- Phone: 1-800-669-9777 (Toll-Free)
- TTY: 1-800-877-8339
- Online Complaint Form: HUD Discrimination Complaint
Additionally, working with an LGBTQ professional through GayRealEstate.com provides an added layer of security and advocacy. These experts understand your unique needs and are committed to ensuring you experience a fair and inclusive home-buying or selling process.
- Focus on Financial Security:
With the economic uncertainty brought about by political shifts, LGBTQ buyers are prioritizing affordability and long-term financial stability. This has led to increased interest in shared housing arrangements, multi-generational living, and cooperative housing solutions.
- Advocacy for Fair Housing Protections:
Advocacy groups and legal organizations are ramping up efforts to defend and expand fair housing protections for LGBTQ individuals. These efforts remain a crucial counterbalance to the rollback of federal DEI programs.
Challenges and Opportunities in the Current Climate
The expected rollback of federal protections and reduced funding for fair housing programs will pose significant challenges, particularly in regions already struggling with inclusivity. However, the resilience of our LGBTQ+ community and our allies has created opportunities for grassroots movements to push for local-level inclusivity and support.
Looking Ahead to 2025
As the new administration takes office, the housing market’s inclusivity for LGBTQ individuals may face further obstacles. However, the strength of community-driven initiatives and the unwavering support of advocacy organizations like GayRealEstate.com (and the 21+ National LGBTQ non-profit organizations they support financially monthly) offer hope for continued progress at local and regional levels.
LGBTQ buyers and sellers are encouraged to stay informed, seek out trusted allies in the real estate industry, and leverage platforms like GayRealEstate.com to ensure their home-buying or selling experience remains as smooth and equitable as possible.
Despite the challenges of an evolving political and social climate, one thing remains certain: LGBTQ individuals have allies who stand by their side, fighting for equality and inclusivity in housing and beyond. For more than 30 years, GayRealEstate.com has been a steadfast advocate for LGBTQ rights, helping thousands of individuals and families navigate the home-buying and selling process safely and confidently.
Not only does GayRealEstate.com connect clients with LGBTQ-friendly agents, but the organization also actively supports LGBTQ non-profit initiatives, ensuring that the community continues to thrive. No matter the obstacles ahead, we want you to know: We’re not going anywhere.
Whether you’re buying, selling, or relocating, GayRealEstate.com is here to provide the expertise, resources, and unwavering support you deserve. Together, we’ll continue building a brighter, more inclusive future—one home at a time.
Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected].
Autos
SUV rundown: ‘tis the season for traveling
6 standouts whether trekking home for the holidays or taking daily commutes
Here are six standout SUVs from which to choose if you’re looking for a new ride this holiday season.
BMW X5
Price range: $67,000-$90,000
MPG: 23 city/27 highway
0 to 60 mph: 5.3 seconds
Cargo space: 72.3 cu. ft.
WHAT’S TO LIKE: With a base model nudging $70,000, the midsize BMW X5 costs a pretty penny. Yet this dream machine offers a choice of boffo engines, exciting handling and enticing features. Four trim levels, including a plug-in hybrid and gnarly M60i (a V8-powered ride that costs—yikes!—$20,000 more but scoots from 0 to 60 mph in just 3.6 seconds). Spacious, too, with oodles of room. And if you’re jonesing for glitz, there’s a glass-trimmed shifter that looks like real crystal, massaging seats, panoramic roof with embedded LED lighting, rear window shades and more. There’s also the latest tech: 12.3-inch digital display, 14.9-inch infotainment touchscreen, wireless charger and 20-speaker Bowers & Wilkins stereo. Pricey? Yes. Worth it? Drive one and see.
BUICK ENCORE
Price range: $27,000-$34,000
MPG: 29 city/31 highway
0 to 60 mph: 8.8 seconds
Cargo space: 50.2 cu. ft.
WHAT’S TO LIKE: Buick keeps hitting the high notes with its bravura designs, and the Encore—a sassy subcompact—is no exception. Surprisingly spry, with comfy seats, concise handling and a classy cabin. There’s beaucoup standard gear, including remote start, LED headlights, smartphone integration and the latest safety systems. Open your wallet a bit more to add larger wheels, 360-degree camera, hands-free liftgate, Bose audio and other niceties. A big plus: lotsa storage. Alas, not the peppiest engine, but capable enough to not feel sluggish. Compared to upscale divas—Audi Q3, BMW X1,Mercedes GLA 250—the affordable Encore deserves, well, an encore.
GMC ACADIA
Price range: $44,000-$57,000
MPG: 20 city/27 highway
0 to 60 mph: 6.7 seconds
Cargo space: 97.5 cu. ft.
WHAT’S TO LIKE: The third-gen Acadia, redesigned for 2024, is the best yet. This full-sizer is now larger, more potent and full of gizmos, including hands-free driving assist, wireless charging, Wi-Fi and more. For off-roading, there’s a tighter suspension, all-terrain tires and even a steel skid plate. My only beef was with the automatic braking system, which scared me silly the first time I was backing into a garage. The driver’s seat began vibrating and buzzing wildly, even though there was nothing nearby. Then the brakes slammed on—hard. Most vehicles only beep or apply the brakes when too close to an object. This, though, felt and sounded like a manic whoopee cushion. But yes, after driving the Acadia for a week, I missed having such a quirky alert on my next test vehicle.
JEEP GRAND CHEROKEE
Price range: $37,000-$69,000
MPG: 19 city/26 highway
0 to 60 mph: 7.4 seconds
Cargo space: 70.8 cu. ft.
WHAT’S TO LIKE: A glam ride on a gutsy chassis. Earlier this year I reviewed the mid-range Overland model. Now it was time for the top-of-the-line Summit Reserve. Mixing pizzazz, power and pampering, this gung-ho SUV spoiled me good. And at $69,000, it should. This is BMW X5 territory, yet the Jeep delivers virtually the same creature comforts and advanced safety monitors. The seats may not be as taut, but that’s a minor quibble. A trailer-tow package also can’t be beat: automatic headlight leveling, load-leveling rear suspension, and heavy-duty cooling and electrical systems.
LINCOLN NAUTILUS
Price range: $52,000-$75,000
MPG: 21 city/29 highway
0 to 60 mph: 7.2 seconds
Cargo space: 71.3 cu. ft.
WHAT’S TO LIKE: Lincoln previously appealed mainly to Gramps and G-ma, but now the target is a younger crowd. For the midsize Nautlius, this means mod styling, a finely crafted interior and eye-popping features like a four-foot digital display. The ginormous screen is part of a sweeping dashboard that stretches onto the door panels. Handling and cornering are smooth yet sporty, especially in the new hybrid model. When the Nautilus was parked, I could indulge in some guilty pleasures with a multisensory setup that integrated the panoramic screen, surround-sound stereo, massaging seats and a fragrance diffuser into a truly spa-like ambiance. Nirvana, indeed.
SUBARU FORESTER
Base model: $29,000-$38,000
MPG: 26 city/33 highway
0 to 60 mph: 9.3 seconds
Cargo space: 74.2 cu. ft.
WHAT’S TO LIKE: Solid, steady, a sure thing. Thanks to all-wheel drive, the Forester’s handling is excellent—especially in rain or snow. And even though this is no speedster—the powerplant is a tad pokey—the fuel economy outshines most rivals. My test drive was the midrange Sport model, which boasted 18-inch black-painted wheels, raised roof rails, foglights, tinted rear windows and an all-weather package with a windshield-wiper de-icer. Best of all: the cargo room was big enough for all my holiday shopping, including a very wicked outfit for my husband—my own Prince Fiyero.
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