Connect with us

Real Estate

Wishing all Americans a happy fourth

Whatever your dream, take a day to celebrate our nation

Published

on

American, gay news, Washington Blade

(Photo by Jnn13; courtesy Wikimedia Commons)

Throughout my childhood, my parents led me to believe that the parades, the fireworks and all the pomp and circumstance associated with Independence Day were for me.

You see, I was born on the Fourth of July.

As far back as I can remember my birthday celebration would be a study in red, white and blue, from the clothes I wore to the cake I ate to the paper on the gifts I unwrapped. My formative years were very colorful indeed and I was the epitome of the Yankee Doodle Dandy.

When I turned 18, even the news of my visit to Evart, Michigan (pop. 1,883), where I celebrated my birthday with my high school sweetheart and his family, appeared in the society pages of the now-defunct Evart Review.

That morning, the front page of the small town paper wished its residents a ā€œHAPPY 4TH OF JLUY!ā€ in four inch, boldface type. (I suspect the editor of the paper had celebrated a bit too much himself the night before.)

For decades we have been told that homeownership is the American Dream, but on July 4, 1776, the real American Dream was born when the Declaration of Independence from the Kingdom of Great Britain was adopted. While my age is more hippie than hipster, I was not there the day John Hancock signed his name on the bottom of that life-altering document with his recognizable flourish.

I was around, however, for the bicentennial celebration in 1976, living for the second time in Michigan, adjacent to the Canadian border, where Americans innocently asked whether Canada also had a Fourth of July.Ā  (The answer is yes; it follows the third of July.)

I also had the honor during my previous career of swearing in new citizens of our country at numerous naturalization ceremonies, several of which took place on Independence Day. For most of those immigrants who came to our shores and chose to pledge allegiance to our country, that was and remains the greatest American Dream.

Since then, Iā€™ve had the privilege of representing many people who were the first in their families to purchase a home, a dream many would not have been able to realize were it not for the Civil Rights Act of 1968 and all the federal and state laws and modifications that followed, making up what we now know as equal opportunity housing.

As early as 1944, our nationā€™s military and veterans could avail themselves of mortgage loans specifically designed to help them achieve stability during and after honorably serving this country. While the current process for obtaining a Veteranā€™s Administration home loan is often frustrating and time-consuming, the original goal is still a worthy one.

Even now, with our area becoming one of the most expensive housing markets in the country, real estate agents are able to offer the benefits of D.C.ā€™s Home Purchase Assistance Program, Property Tax Abatement Program and the D.C. Open Doors mortgage loan program to clients whose low to moderate income levels may qualify them for these creative methods of promoting homeownership.

My own version of the American Dream began when I bought my first home in the year following the bicentennial. At that time, without email, websites and Facebook, real estate agents used a variety of more traditional methods to market properties and stay in touch with clients.

Over the years, I received birthday and holiday greeting cards, gifts of fruit baskets and seed packets, and monthly recipe postcards from the agents I had worked with, but my favorite marketing display would take place when a house was for sale during the Fourth of July weekend.

About a week before the holiday, the listing agent would come to the house with two-dozen 8×12-inch American flags on sticks, which he or she would pound into the ground on both sides of the front walkway with a rubber mallet. The following Sunday, each open house visitor would walk a patriotic path to the house. It was impressive.

So in the spirit of such patriotism and in remembrance of our forefathers who founded this country and made it possible for each of us to strive to achieve our own American Dream, I wish you all a HAPPY 4TH OF JLUY!

Valerie M. Blake can be reached at Keller Williams Capital Properties, 202-246-8602 or at [email protected]. Each office is independently owned & operated. Equal Housing Opportunity.

Advertisement
FUND LGBTQ JOURNALISM
SIGN UP FOR E-BLAST

Real Estate

Navigating D.C.ā€™s down payment assistance programs

On the way home, after a detour and a few speed bumps

Published

on

D.C. offers some of the most extensive programs for down payment assistance in the country. (Illustration by demianvs/Bigstock)

D.C. offers some of the most extensive programs for down payment assistance that are managed by the Greater Washington Urban League and the DC Housing Finance Authority, for programs like HPAP and EAHP (Home Purchase Assistance Program and Employer Assisted Housing Program). 

The District also offers the DC Opens Doors Program. All of these are great examples of offerings to help first-time or newer home purchasers to afford buying in the District of Columbia, one of the nationā€™s most expensive housing markets. 

There are various requirements for a buyer to use the program. These can be found at dhcd.dc.gov/service/homeownership. Many qualified local lenders are knowledgeable about these programs and can assist in dozens of these transactions each year. Often, asking a lender about these programs is a great place to start. Tina Del Casale with Sandy Spring Bank has been helping her clients with these programs for years. As part of her education outreach for clients, Tina informs her buyers of the following:

  • In the HPAP and the EAHP program, the seller must provide the opportunity for the buyer to perform a home inspection with a qualified home inspector. Ā 
  • The items that are flagged as ā€œmust repairsā€ need to be fixed by the seller. Ā 
  • The buyer must get their financial documentation to the lenders involved, as well as to the District of Columbia to be approved to use the program. Ā 
  • Whichever organization or department is managing the down payment assistance fund disbursal will also be involved in the process.Ā 
  • Ideally, it takes about 45-60 days from the date of ratification (going under contract) to close (the settlement date)Ā 
  • The lenders help to qualify/approve the condo buildings for financial health, ensuring that the finances within the building are being maintained by the homeowner association.

What happens, often, is that the process goes smoothly until the organization that manages the down payment assistance funds receives the file. The closing date can be extended time and time again, causing both the buyer and the seller to recalculate moving dates, moving trucks, packing, when to move funds around, whose home they will be sleeping at after the 3rd or 4th delay, and wondering if the seller is going to become so agitated with the entire process that they begin to Google search the term ā€œsmall claims court.ā€ In a recent instance, the buyer was delayed about four times over the holidays and when the file was ready to close, they were informed that the settlement had to be the following day. So, it was a situation of delay, delay, delay, delay, delay, delay, delay, and do this NOW, which means a buyer must coordinate (for the maybe 3rd time) a day off of work and recalculate their entire schedule at the last second to accommodate an organization that seems to have made few efforts to stay in communication along the way.

These delays make the buyer less competitive to win an offer and can make a planned purchase fail due to the failure of the buyer to perform. Nobody wants to be told their house will sell and then must make alternative plans when they realize the contract is not going through, OR there will be a significant delay by up to one to three months. 

How can we make this process more user friendly? If we could, developers might be more motivated to make affordable housing units available for more people, knowing that the process of selling a unit wonā€™t cause interminable delays and headaches for all parties involved.  Buyers must be fully vetted financially before submitting an offer. Is there a way to fully vet the down payment assistance funds, that they arrive in escrow at the title company a week or two before settlement so that all parties can plan their lives accordingly? 

Self-awareness as an organization is crucial for knowing where blind spots exist, how they can be looked at, and how a decent process can be improved to fulfill its own goal of helping buyers get into homeownership. Perhaps an exit interview or feedback form could be sent to each buyer after purchase and looked at for suggestions for improvement.


Joseph Hudson is a referral agent with Metro Referrals.Ā Reach him at 703-587-0597 orĀ [email protected].

Continue Reading

Real Estate

Tips for those considering buying a home in the Caribbean

Weather, safety, infrastructure among concerns

Published

on

Many Americans are considering leaving the country for the next four years. The Caribbean is an appealing option. (Photo by Nik Sorokin/Bigstock)

I recently returned from cruising through the Caribbean, just in time to experience the last vestiges of a snowstorm and 15-degree weather, coupled with a plethora of angry people wearing red hats, absent-mindedly riding around in circles on the Metro. No matter ā€“ I still have that post-vacation glow.

The Caribbean, a diverse region of 13 independent countries, 12 dependencies, and seven overseas territories, has long been a dream destination for travelers, retirees, and investors alike. With its crystal-clear waters, pristine beaches, and relaxed lifestyle, it’s no wonder that many people are drawn to the idea of owning property in this tropical paradise.

Buying real estate in the Caribbean requires careful planning, research, and an understanding of the unique challenges and opportunities that come with investing in a foreign market. Selecting the right island and community is a critical step in the buying process.

Consider such factors as:

  • Accessibility: Proximity to major airports and ease of travel
  • Infrastructure: Availability of roads, utilities, and amenities such as internet and streaming services
  • Safety and security: Crime rates and political stability
  • Climate and weather risks: Susceptibility to hurricanes and natural disasters
  • Healthcare: Quality and availability of medical services

Property prices and inventory vary widely across the region. Each Caribbean nation has its own rules regarding foreign ownership of property. Some countries have relatively open markets where foreigners can buy land freely. Others, such as the Bahamas, require special permits for non-residents purchasing property above a certain value.

It is essential to work with a reputable local attorney to navigate the legal requirements, including landownership laws and restrictions, residency and citizenship options, property taxes and fees, and title searches and due diligence.

Some islands, like Barbados and the Cayman Islands, offer residency permits for property owners who meet specific financial criteria. These programs can provide tax benefits, visa-free travel, long-term residency rights, and in some cases, top-tier medical facilities, including private hospitals and specialized care centers. 

Moreover, Antigua & Barbuda,Ā Dominica,Ā Grenada,Ā St. Kitts,Ā andĀ St. Lucia offer a Citizenship by Investment (CBI) program for property buyers: In some cases, citizenship will grant you visa-free access to more than 150 countries. While the costs fluctuate depending on the country, the process can be completed in as little as 7-12 months.Ā 

As you can imagine, there has been a surge of inquiries from the U.S. since last fall, so it would be wise to confirm the most recent amount and type of minimum investment required. You can find helpful information from the company La Vida atĀ  goldenvisas.com.

Many buyers in the Caribbean look to generate income through vacation rentals or long-term leasing. Islands with strong tourism demand, such as Aruba, the Bahamas, and St. Lucia, offer excellent rental potential. 

Working with a reputable property management company can help maximize rental income and ensure smooth operations; however, investors should consider seasonal fluctuations in tourism, property management costs, and local regulations on short-term rentals in determining their return on investment before committing to a purchase. 

As in the U.S., buying property in the Caribbean comes with additional costs beyond the purchase price. These may include legal fees (typically 1-3% of the purchase price), stamp duties and transfer taxes that vary by country, real estate agent compensation, property insurance, and maintenance costs.

Financing can be a challenge for foreign buyers, as many Caribbean banks require substantial down payments or have stringent lending criteria. Some investors choose to secure financing from their home country or pay in cash.

Nonetheless, expatriates living in the Caribbean often benefit from a lower cost of living, warm climate, and relaxed lifestyle. Many islands have well-established expat communities, making it easier to adjust to life abroad. As you begin your journey, it is recommended that you secure health insurance that covers medical treatment in both the Caribbean and your home country.

To successfully purchase property in the Caribbean, research and choose your preferred island based on your budget, lifestyle, and investment goals. Work with a local real estate agent who understands the market and legal requirements and, if applicable, speaks the appropriate language. Hire an attorney to conduct a title search, review contracts, and ensure compliance with local laws. Negotiate the purchase price and sign a sales agreement. Secure financing (if needed) and transfer funds. 

Once you have completed additional legal requirements such as obtaining permits, paying taxes, and registering the property, you might consider rental or management options if you are not living there full-time.

But if the Caribbean is to be your home away from home for at least a few years, turn off the news, stick an umbrella in your favorite frothy adult beverage, and lean into island living. 


Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.Ā 

Continue Reading

Real Estate

Navigating the shift: Mid-term rentals in D.C.ā€™s short-term market

Increase in remote work leads to big changes

Published

on

(Photo by ilixe48/Bigstock)

The short-term rental landscape in Washington, D.C., has undergone significant transformation in recent years, driven by the dual market shocks of a pandemic and changing regulations. In addition, consumer preferences have been evolving. 

At the forefront of this shift is Charlotte Perry, owner of LUXbnb, who has been in this business for 14 years. Her experience and adaptability have helped her not only to survive, but also to thrive in the furnished rental market. I sat down with Charlotte to discuss her insights on mid-term rentals, the impact of recent regulations, and her strategies for success.

Scott: Charlotte, thank you for joining me in this discussion. Youā€™ve been in the short-term rental business for over a decade. How have you seen the landscape change in recent years, particularly with the implementation of new regulations?

Charlotte Perry:  Yes, the market has definitely evolved, especially with the pandemic and restrictions on short-term rentals. I used to have greater than 80% of my revenue coming from Airbnb and VRBO, but in recent years, both platforms now account for roughly 25% of my rental revenue.

The shift has been dramatic, especially with the rise of mid-term rentals.

Scott: How did the pandemic impact your business?

Charlotte: The pandemic was tough, I lost 35% of my managed portfolio. All were one-bedroom units in multi-unit buildings. Travel came to a halt, and the few people moving around at that time were not willing to share common areas like lobbies and stairways. But the return of U.S. Foreign Service personnel from our embassies to Washington helped stabilize occupancy. The pandemic also forced me to reevaluate all aspects of the business and become lean and efficient. Despite losing those accounts, my revenue declined marginally in 2020 and then in 2021 and 2022 actually surpassed pre-pandemic results. 

Scott: Thatā€™s quite a recovery. The short-term rental regulations that went into effect in 2022 must have added another layer of complexity. How have you navigated those changes? 

Charlotte: The regulations that were passed in October 2018 and enforced in January 2022 were a significant market shock. The new rules require short-term rental properties to be licensed and only owner-occupied primary residences qualify. This reduced my short-term rental inventory by 75%. More critically, it also reduced the total available short-term rental inventory in D.C. across VRBO and Airbnb, the two main booking platforms. I focused right away on growing my mid-term and long-term rentals in response. The rapid shift in how people travel, along with remote work trends fueled by the pandemic, helped me in ramping up quickly.

Scott: Speaking of mid-term rentals, how do you define that market, and why do you think itā€™s growing?

Charlotte: Mid-term rentals are stays between one and 12 months, and theyā€™ve grown in popularity due to the flexibility that remote work offers. People can now work from anywhere, and many are choosing to spend a few months in different cities to try out new lifestyles. This demand has been further fueled by a parallel trend in vacations. I see retirees coming to D.C. for a month rather than a week.  

Demand for multi-month rentals also comes from the fact that we are the nationā€™s capital so we have many different renters cycling through: federal government personnel, politicians, students on government internships, government contractors, our foreign service and military. In addition to our federal government, D.C. has a strong network of museums, medical centers, universities, NGOs, and international organizations, all of which bring in staff for several months at a time.

Scott: It sounds like adapting to this trend has been key to your success. What have you done to meet the needs of mid-term renters?

Charlotte: My main shifts have been focusing on the needs of longer stays, i.e, a separate workspace, a more complete kitchen set-up, clothing storage, improving appeal, and listening and responding to changing customer needs. Location will always be important, however the set-up and appeal of the property are equally important. I want my guests to feel comfortable and at home the moment they arrive.

Scott: How do you approach pricing, given the changes in demand and market conditions?

Charlotte: I use sophisticated software to analyze market demand and adjust the rental rates. After 14 years in business, I know the cyclical demands for rentals in  D.C.. I raise prices for last-minute bookings or high-demand periods like holidays and events. At other times, I may start with lower prices to build up occupancy, then gradually increase the rates as the property gains more visibility. Itā€™s about being flexible and responding to the market.

Scott: What about the new regulationsā€”how have they impacted your business?

Charlotte: The new regulations did significantly impact my inventory, as I mentioned earlier. But the mid-term rental demand has been strong. In fact, business has been growing steadily since 2020. People warned me that my business would collapse, but itā€™s been quite the opposite. Iā€™ve adapted, and LUXbnb is thriving.

Scott: What other opportunities have you found in the current market?

Charlotte: I work with Realtors, because a temporary turn-key rental is often needed in the buying and selling process. When relocating to D.C. buyers appreciate a soft landing in a turn-key rental. It gives them time to explore neighborhoods and schools and look for the perfect home. Likewise, sellers too appreciate the flexibility of a turn-key temporary rental while they decide their next move. Another major opportunity has been the demand from homeowners who are renovating and need to vacate during construction.

Scott: Youā€™ve also diversified your marketing platforms. Can you speak to that for our readers?

Charlotte: Yes, the first thing I did was make changes to my own website to ensure visitors knew LUXbnb handled furnished rentals for any length of stay, from 3 nights to 3 years. Additionally, while Airbnb and VRBO are important, Iā€™ve found success using platforms for mid- and long-term rentals along with niche platforms like Furnished Finders and Sabbatical Homes. Depending on the property and its location, Iā€™ll choose the platforms that best match my and my ownersā€™ goals for the property, and the renters we are looking for. This has allowed me to reach a wider pool of potential renters and not rely on any one platform.

Scott: Compliance with local regulations is critical in this market. How do you manage that aspect?

Charlotte: Compliance is key, and I always make sure my properties are fully licensed with the various licenses that D.C. issues (short-term rental, vacation rental, single-family rental). Sometimes a property needs all three. Additionally, for all rental durations under 91 nights, we collect the 15.95% sales and use tax, and remit that monthly to the Office of Tax and Revenue. Itā€™s an essential part of doing business here, and staying compliant keeps everything running smoothly.

Scott: Youā€™ve also explored opportunities outside of  D.C. How has that experience been?

Charlotte: Yes, we have the infrastructure in place to expand in two directions. The first is Maryland, Virginia, and Delaware vacation homes. I am seeing good consistent demand with our pilot, so we plan to ramp this up. 

Scott: It sounds like youā€™ve built a resilient and adaptable business. Do you have any final thoughts on the future of the short-term and mid-term rental markets?

Charlotte: The rental landscape is always changing, but we know the mid-term rental market will continue to grow. We are riding the wave of market changes driven by societal shifts in how people work and travel. The demand for flexible, high-quality housing is only increasing. For now, Iā€™m focused on providing the best possible experience for my renters and staying ahead of the market trends.

Scott: Charlotte, thank you so much for sharing your insights. Your expertise and adaptability have clearly positioned LUXbnb as a leader in this space. 

Charlotte: Thank you, Scott, itā€™s been a pleasure partnering with Columbia Property Management. Iā€™m excited about the opportunities ahead for both of our businesses, furnished rentals at LUXbnb and unfurnished property management through CPM.

As Charlotteā€™s experience with LUXbnb shows, the mid-term rental market in Washington, D.C., offers incredible opportunities for landlords who can navigate the new regulatory landscape. With the right strategies and partnerships, thereā€™s plenty of room for success in this growing segment.

For more information about short to mid-term rentals, LUXbnb and Charlotte Perry, please visit luxbnb.com.


Scott Bloom is owner and senior property manager of Columbia Property Management. For more information and resources, visitĀ ColumbiaPM.com.

Continue Reading
Advertisement
Advertisement

Sign Up for Weekly E-Blast

Follow Us @washblade

Advertisement

Popular