GayRealEstate USA

The Gay Ghetto Top 10 for 2008

By Jeff Adolph

Gay Ghettos

GLBT towns, cities, villages, ghettos, enclaves, districts, quarters, and neighborhoods are referred to with various descriptive words. But they all represent blossoming pride, celebration, and reliable real estate value.

Each year we choose our Gay Ghetto Top 10 by cross-analyzing demographics against real estate sales data to discover those especially prized metropolitan areas throughout the USA that are most in vogue with the diverse GLBT community. When the number crunching is over, we usually have 10 distinct winners, individually ranked by virtue of their popularity. But for 2008 we have some unique and special surprises – including three 2-way ties and a 3-way tie. Our top 10 are so outstanding, in other words, that they rate higher than ever.

Here are our selections – ranked 1-6 to accommodate 10 championship GLBT communities:

#1 & #2 - Atlanta, GA & Portland, OR (2-Way Tie)

 

Atlanta (pictured above)

 

“Peach City” reigns as the South’s GLBT capital and continues to attract record numbers of GLBT newcomers each year. Combine Southern charm and hospitality with the exciting urban sophistication and thriving economic base of a world-class cosmopolitan city and you the unique Hot ‘Lanta cocktail. The midtown hosts a well-established gay enclave, but at least half a dozen other districts are up-and-coming GLBT ghetto centers.

 

Portland Oregon

 

The “Rose City” boasts a thriving arts scene that ranks among America’s best; and its Hawthorne District is home to one of the most concentrated lesbian communities on the continent. Portland’s Burnside Triangle is a triangular district that underwent a complete renaissance and is now thoroughly established as a GLBT enclave stretching over several energetic city blocks. The influence of Burnside spreads into nearby neighborhoods including the Pearl District (a former industrial section of old Portland that now booms with art and commerce) and the rather upscale and upbeat Northwest neighborhood.

 

#3 - Charlotte, NC

 

Charlotte

 

Charlotte is one of the largest banking centers in the world, and is second only to NYC in that respect. But the “Queen City” also benefits from a powerfully funded arts community and offers wonderful museums, entertainment venues, and an eclectic mix of 19^th century neighborhoods and sleek urban downtown architecture. Neighborhoods like South End and NODA (North Davidson Street) enjoy a thriving GLBT presence and the city has other desirable and affordable enclaves including tree-lined Windsor Park.

 

 

#4 & #5 - Raleigh, NC & Tampa/St. Pete Metro Area, FL or (2-Way Tie)

 

Raleigh

 

Raleigh is North Carolina’s capital city and occupies one section of the Piedmont region’s Research Triangle. It benefits from an expanding arts and entertainment scene and an overabundance of renowned universities and high-tech industries. Raleigh is also fast becoming a capital city for GLBT communities. Housing is affordable; upside economic and population growth potential is strong, and it is centrally located between the pristine Outer Banks coastal region and the wildly popular Blue Ridge Mountains.

 

Tampa/St. Pete Metro

 

If 300 days of sunshine each year along some 40 miles of beachfront appeal to you, that might explain why Tampa and St. Pete have experienced a steady influx of like-minded GLBT residents and business owners during the past decade. Downtown’s Central Avenue underwent a complete revitalization and the city hosts Florida’s biggest GLBT festival. Art enthusiasts appreciate the fact that while this metro area is a great place to buy a permanent or vacation home for equity appreciation; it also serves as the proud home to the most extensive collection of Salvador Dali paintings outside of Spain.

 

#6 & #7 - Dallas/Fort Worth, TX & Short Hills/Metuchen/Surrounding, NJ or (2-Way Tie)

Dallas/Fort Worth

 

Dallas has a relatively young population, a steady economy, a low cost of living, and one of the biggest commercial fashion and furniture districts in the USA. The “Big D” is also big in terms of GLBT communities that can be found throughout the sprawling city with a high concentration along Greenville Ave., Cedar Springs Road, and Oak Lawn Avenue. The Dallas gay Mecca converges in the gorgeous historic Turtle Creek area – home to the Frank Lloyd Wright-designed Dallas Theater Center. Neighboring Fort Worth is a smaller city with big city GLBT amenities including its own gay film festival and rodeo.

 

Short Hills/Metuchen/Surrounding Areas

 

Natural and historical beauty, vibrant downtown venues that retain quaint charms but exceptionally innovative restaurants and shops, the nationally recognized Paper Mill Playhouse, a first-class school system, and easy commutes into the Big Apple all conspire to make this area a uniquely awesome place to live. These valuable features have not been lost on the GLBT community that thrives in this Victorian-era central New Jersey enclave of restored antique homes and outstanding real estate investment opportunities.

 

#8, #9 & #10 - Palm Springs, CA & Chicago Metro Area, IL & Austin, TX or (3-Way Tie)

 

Austin

 

Austin has a long reputation for gay-friendliness, and what was long ago a large gay underground is now a tremendously creative GLBT synergy that permeates the whole city in full view of everyone. Austin is the state capital, an important academic center, and the music industry’s newest crown jewel. Plus the city has a high-tech industry presence only rivaled by Silicon Valley. Austin offers a wide range of GLBT enclaves that are literally all over the map, and Texas is famous for low taxes and high growth.

 

Chicago

 

“Chi-town” surprises many newcomers who do not expect so much abundant and accessible green space – including many miles of public lakefront parks – in such a large American city. Better-known assets include the entire range of big city perks and activities – from major sports teams and museums to world famous restaurants and a sizzling music scene. The local GLBT celebration attracts half a million people for its annual parade, and scores of them stay each year to become fulltime residents of the numerous architecture-rich neighborhoods found in the wonderful Windy City.

 

Palm Springs

 

Ideally situated two hours from Los Angeles and San Diego, Palm Springs combines sunny days, breathtaking mountain views, exotic nightlife, an historic downtown village, and an array of galleries, gardens, museums, shops, and restaurants. These days it also offers rare affordability, as California’s housing prices have fallen from their high perch to become much more accessible. In 2008 the town offers rare opportunities for upward equity appreciation. Plus same-sex marriage is now legal. No wonder Palm Springs has emerged as one of the most dynamic and fast-growing GLBT destinations in the USA.

 

Trace the social migration of America’s GLBT population through history. What emerges is a virtual blueprint for success in terms of smart growth, savvy investment, vibrant arts and culture, robust economics, low crime, high property value, superior schools, and model communities.

 

Pick your “Gayborhood” and rest assured that the future is bright for a diversified return on investment highlighted by synergistic appreciation of assets that are both tangible and intangible.

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By Jeff Adolph

Gay Ghettos

GLBT towns, cities, villages, ghettos, enclaves, districts, quarters, and neighborhoods are referred to with various descriptive words. But they all represent blossoming pride, celebration, and reliable real estate value.

Each year we choose our Gay Ghetto Top 10 by cross-analyzing demographics against real estate sales data to discover those especially prized metropolitan areas throughout the USA that are most in vogue with the diverse GLBT community. When the number crunching is over, we usually have 10 distinct winners, individually ranked by virtue of their popularity. But for 2008 we have some unique and special surprises – including three 2-way ties and a 3-way tie. Our top 10 are so outstanding, in other words, that they rate higher than ever.

Here are our selections – ranked 1-6 to accommodate 10 championship GLBT communities:

GLBT Real Estate Benefits Mark Optimistic Progress with Recent Court Ruling

By Jeff Adolph

'Ask A Realtor'

To practice real estate in the USA means to first go to real estate school, where much of the curriculum is devoted to studying – and learning how to abide by – Federal Fair Housing Law. The Architectural Barriers Act, the Americans with Disabilities Act, the Age Discrimination Act, and half a dozen Presidential Executive Orders all provide various kinds of protection and legal rights that fall under the broad category of Fair Housing Law.

 

Title VIII of the Civil Rights Act of 1968 – the Fair Housing Act – for instance, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, disability, and familial status. The familial coverage is extended and interpreted to include children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18.

 

But nowhere in any of these important pieces of civil rights related legislation does sexual orientation come into play. That is, of course, unless you are in the dominant default demographic of heterosexuals who can get a marriage license anywhere in the country to automatically enjoy special protections, tax breaks, and ownership rights related to real estate.

 

Countless GLBT couples have been subjected to both overt and covert discrimination when it comes to the practice of real estate and the business of mortgage lending. Some have been told they cannot rent together. Others have been told that they cannot both put their names on a homeowner’s insurance policy. GLBT couples have been taxed at a much higher rate than married couples, for example, who almost always receive preferential treatment when filling IRS tax forms. That is especially true when it pertains to the tax advantages of real estate such as capital gains tax breaks.

 

Things are changing, however, and the momentum for progressive legislation is gaining power and traction thanks to a landmark decision handed down on May 15^th by the California Supreme Court. The court struck down two California laws that had limited marriages to only being valid when between a man and a woman. In doing so they decided that same-sex couples have a constitutional right to marry. The legal premise for the California decision was based in part on a court case that was settled 60 years ago and determined that interracial marriage should be legalized. Back then California again made history because it was the first state in the USA to legalize interracial marriage.

 

Unless the court grants a stay, the law will go into effect in time for many June brides to take full advantage of it. California Governor Arnold Schwarzenegger said in a statement to the press that he respected the ruling and did not support a constitutional amendment to overturn it. So it is predicted that the ruling will indeed stand – and it should have a powerful proactive influence upon similar future judicial cases across the USA.

 

Other state high courts in New York, New Jersey and Washington ruled on same-sex marriage in recent years and their decisions were narrowly divided. That means that these states will likely be the first to reconsider the issue in the wake of the groundbreaking California change. The Connecticut Supreme Court is also expected to weigh in on same-sex marriage, perhaps before the end of the year.

 

Evidence that others will follow suit came quickly. Just two weeks after the California ruling, Governor David Paterson of New York sent an official memo to his state agencies instructing them to recognize same-sex marriages performed in states and countries where they are legal. The agencies were told to revise existing policies and regulations as needed to comply with the new mandate.

 

According to census data more than 100,000 same-sex couples live in California. The state already had the benefit of a domestic partnership law that confers almost all of the benefits that are afforded to their married counterparts. But speaking for the majority in his written option, California Chief Justice Ronald M. George basically said that the domestic partnership law was not sufficient and that gays deserved more.

 

“In view of the substance and significance of the fundamental constitutional right to form a family relationship,” he wrote, “the California Constitution properly must be interpreted to guarantee this basic civil right to all Californians, whether gay or heterosexual, and to same-sex couples as well as to opposite-sex couples.”

 

The 4-to-3 decision made California the second state to allow same-sex marriages, following a similar ruling in the state Massachusetts. Back in 2004 thousands of gay couples who had rushed to get married under a temporary law saw their marriages nullified by a court decision, so this time the higher court ruling was cause for exuberant celebrations outside San Francisco City Hall.

 

For quality real estate experts serving the GLBT community, visit www.gayrealestate.com or call toll Free phone number 1-888-420-MOVE (6683). Their agents value your input and take pride in meeting your needs and expectations when you buy or sell a home.

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New Series Beginning

By Jeff Adolph

LGBT Residential Real Estate

Last week concluded our 'Around the Nation' series, where I progressively went through each states real estate facts and figures and gave you a sounder understanding of the real estate climate in each, as well as where LGBT communities were gravitating to.

This week I am beginning a new series that possibly will have no ending, as I am focusing on those gayest zip-codes that we uncovered in our last series. This series will be entitled 'LGBT Zipcodes -- A Closer Look', and shall uncover what is 'new' in a residential sense, in each of the locations that we discovered. So hold on to your realty because this new series is going to the backbone of Gay RealEstate USA, and it will enable you to know what makes the gayest locations in America so great, as well as why the LGBT community gravitate to each in a realty and lifestyle sense.

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The Interest Rate Outlook Continues to Improve

By Jeff Adolph

Ask a Realtor

Most of the business news emphasizes an expansive subprime debacle and the growing troubles of lenders and mortgage-backed security investors. Optimism is scarce in the headlines. Or at least it is scarcely reported within the mainstream media. But the fact is that major problems in the mortgage industry now overshadow the good news that conventional 30-year fixed rate mortgages are a bargain.

The Fed Funds rate was cut to a bare bones rate of 2 percent on April 30^th. Recent rates on the tried-and-true 30-year fixed rate mortgage – which has been the bread and butter of the American housing market through all sorts of ups and downs – hover right around the attractive six percent level. Those who pay a little extra at closing can even get lower rates, and sometimes that is a smart strategy for those buyers who plan to stay in the home for many years.

Short-term owners are better off taking the going rate – which is still a bargain – because it will require less closing costs. That’s because if you intend to sell within 2-5 years you won’t have the loan long enough to capture savings over the long haul. Keep in mind while planning your exit strategies that if you stay in your home as a primary residence for at least two years, you will most likely qualify for a significant tax savings on any capital gains. With the housing market so oversold, capital gains are a very real possibility over the next 2-3 years, so homeowners who invest now and sell after the end of this decade may be rewarding with a double bonus of gains plus tax breaks.

If you are shopping for a home – at a time when home prices are historically affordable and builders of new homes are throwing in lots of valuable perks and upgrades – there is no time like now. This season, all over the USA, the building industry is – both literally and figuratively – throwing in everything including the kitchen sink in order to market and sell unusually backlogged inventories of new homes.

Or you may want to refinance, take out a home equity loan, or use a home equity line of credit (HELOC) to fund home improvements or upgrades. With the slowdown in the housing industry putting the squeeze on builders and contractors, their services are available for discounted prices. Many are hungry for work, so this summer will offer a great opportunity to add tangible equity and quality of life enhancements for a super reasonable price to a home, rental unit, or vacation property. Although this normally a hectic season to try to find qualified contractors – because most of the good ones stay booked months in advance – this year there are plenty of expert professionals waiting to jump on a job and get it done in a timely fashion.

Or you may have purchased a home within the past few years and gotten stuck with an increasingly expensive adjustable rate mortgage. In that case, refinancing into a predictably prudent conventional mortgage at current interest rates is a no-brainer. Although rates during the most recent real estate bull market spoiled many consumers with super-low single digit interest, many of those rates were just teasers or come-on’s to lure buyers into ARM loans that have now catapulted into double digit territory. But conventional 30-year rates like those offered now have not been around in years.

Don’t delay, however, because the Federal Reserve issued statements at its final April meeting insinuating that the unprecedented series of big rate cuts may now be ending. So those who capture a fixed rate now will enjoy built-in savings when the cycle again sends the cost of borrowing higher.

To offset the rising cost of other household expenses while maintaining a prudent rein on the mortgage, consider employing a biweekly payment strategy. Although many mortgage lenders and banks will manage a biweekly plan for you, they do so for fees that typically undercut your savings. A better strategy – as long as you are somewhat organized and have a moderate amount of financial discipline – is to just create and manage it all by yourself.

Here’s how it works. Let’s say, for instance, that your monthly payment is $1,600. Instead of paying once a month, just pay $800 every two weeks. By paying half of your monthly payment two weeks ahead of time, you will make the equivalent of a whole extra payment each year. Savings realized over the life of a 30-year loan could cut the payoff time by about three years. That not only saves you all those extra payments but it adds up to large savings of interest paid on your outstanding principal balance. Most mortgage companies will let you employ this clever but painless strategy, and it will not cost you any extra to launch your biweekly payment program.

Each of the mortgage and real estate brokers at www.GayRealEstate.com and www.GayMortgageLoans.com is especially committed to the GLBT community. To contact one of these experts just visit the Web sites or call toll free at 1-888-420-MOVE (6683).

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Government Foreclosure Rescue Plans are in the Works

By Jeff Adolph

Ask a Realtor

Officials in Washington are busy crafting comprehensive rescue plans to help homeowners and revive a troubled housing market.

The Federal Housing Administration (FHA) has already stepped into a greater role as part of the government’s economic stimulus and real estate revitalization effort. The agency has recently experienced a substantial increase in the number of conventional borrowers refinancing into FHA-supported products. Refinancing business has tripled within the past two years at the FHA, as consumers seek more affordable loans with smaller down payments and lower interest rates.

Two significant events at the agency target homeowners seeking affordable loans and alternatives to costly adjustable rate mortgages. The most recent is a change in the amount of mortgage money that the FHA can insure.

Limits for FHA-insured loans were adjusted a month or two ago to compensate for extreme inflation in the housing market during the last bull market. As the housing bubble expanded, so did home values, so that the medium price of a home nationwide jumped considerably. In pricier regions like California, the average home now costs around half a million dollars. So the FHA was given permission to raise their cap from a rather outdated $362,790 to $729,750. The new loan limits help not only buyers but also homeowners wishing to refinance more expensive properties.

The other big initiative supported by the Bush administration, and announced at the end of 2007, is a project dubbed FHASecure. Under FHASecure, about a quarter of a million households will avoid foreclosure by refinancing with FHA-insured loans. FHASecure lets homeowners with strong credit histories refinance with attractive rates and terms, as long as they were making timely mortgage payments before their loans reset and triggered defaults.

One of the most ambitious and hotly debated plans is one now being argued in Congress that was conceived by Representative Barney Frank, the Chairman of the powerful Financial Services Committee. Under his proposed plan, the government would inject some $300 billion into the sagging housing and mortgage markets by expanding the jurisdiction of the FHA to insure mortgages and the refinance of existing mortgage loans.

To try to ease the impact on taxpayers, the Frank proposal also includes provisions for adding various fees and small closing costs to these loans, so that borrowers would help pay for the federal insurance. The most punitive fee would penalize those who use the loans to refinance homes but then sell them for a profit, and was added to the plan to discourage people from using the loans to “flip” houses for quick cash. If someone sells during the first year, for example, they will pay a penalty equal to all of the profit they derive from the sale. During the second year of the new mortgage they would have to pay 80 percent of their profits back to the FHA, and the fees would gradually diminish through the fifth year. After five years of servicing the loan, homeowners who sell will be charged a so-called “exit fee” of three percent of any profit they make.

While some see the exit fee as an imposition on consumers, most agree with it because it creates a method for the FHA – and taxpayers – to share in a real estate market rebound. By helping homeowners avoid foreclosure now, in other words, the FHA becomes entitled to a small stake in any equity that accumulates in the future.

Lenders would need to forgive significant amounts of debt owed to them for the plan to work, because many homeowners owe more on their mortgages than their properties are worth. But those who support the idea say that it will help both lenders and homeowners.

• Overall, the proposal could prevent between one and two million foreclosures and halt home-price declines that are now fueled by excessive inventories of repossessed homes.
• Mortgage companies will lose more if they have to foreclose on homes than they would by letting borrowers off the hook for some of their outstanding debt when they refinance.
• And the newly structured loan would have the backing of the FHA, which gives added incentive to lenders and investors to go along with the plan.

Critics say the bill does not provide adequate protection for taxpayers, because it calls for the FHA to lower its loan application standards and lend to people who are already in financial trouble with less than stellar credit.

Meanwhile Robert Shiller, a Yale economist, says the real culprit is inflation, not lenders, loans, and homeowners. Home prices adjusted for inflation grew 85 percent during the decade that ended in 2006. But despite the downturn they have only shrunk by 15 percent. That insight may not help to resolve the foreclosure rescue plan debate, but it certainly supports the notion that over the long haul, real estate is still the best investment – despite historic setbacks and bearish market cycles.

Whether you’re buying, selling, or refinancing, contact the professionals at www.GayMortgageLoans.com and www.GayRealEstate.com. Or call toll-free at 1-888-420-MOVE (6683). The entire network is comprised of experts dedicated to assisting the GLBT community.

Real Estate Tax Implications for GLBT Couples

By Jeff Adolph

Ask a Realtor

The entire system of USA taxation favors real estate ownership in ways that make property owners green with cash, and investors in other kinds of tangible or intangible assets green with envy. For example, ownership of artwork, commodities, or stocks and bonds conveys few deductions – whereas real estate offers everything from mortgage interest deductions to breaks for those who reinvest capital gains from the sale of a residence.

But before we get too excited about our tax write-offs, it is important to remind ourselves that while the system favors real estate, the more overriding and dominant paradigm in the USA is that it favors all things heterosexual. If you happen to be gay, an entire menu of sweet treats at tax time may be removed from the table – or made more difficult to get.

Consider, for instance, the basic documentation required to file our state and federal income taxes. Nobody – gay or straight, liberal or conservative – believes that the complex and convoluted forms are user-friendly, and everyone agrees that they could be simplified and streamlined. If you happen to be a GLBT citizen paying taxes as a member of a “domestic partnership”, however, the spaghetti bowl of rules, regulations, guidelines, and protocols reaches a whole different level of mess and stress. The paperwork becomes so exponentially more bizarre and frustrating for gays that it makes tax filing for “straight” couples seem downright – to invoke an unintentional pun – straightforward.

We can first pause and celebrate the fact that this year there are more states in the nation that accept tax returns from GLBT couples. Thanks to legal acknowledgement of same-sex couples, it is now possible to file state income tax forms in California, Connecticut, Massachusetts, New Jersey, Vermont, and the District of Columbia. But to do so – and this is where it gets really bogged down in red tape – each member of the domestic partnership has to first fill out an individual IRS tax return. That makes sense, because the federal government doesn’t recognize these GLBT partnerships. But what may leave couples – and their tax accountants – scratching their heads in disbelief and frustration is that next, the two individual taxpayers have to fill out another IRS tax return, pretending to be an officially authorized and legal couple. The return is unacceptable as far as the IRS is concerned, of course, but without making this mock return you cannot file your state taxes.

Kevin McCormally, editorial director of Kiplinger’s Personal Finance, recently pointed out some of the unexpected problems faced by GLBT couples at tax time on the NPR television show Nightly Business Report. He explained it this way:

“Because federal law forbids these couples to file jointly, the states start their tax computations with a joint Federal return. That means same-sex couples basically must complete a minimum of four tax returns. They use that fantasy return as the jumping off point to prepare a joint state tax return.”

In other words the make-believe return is necessary in order to help make the paperwork of the federal government jive with that submitted to the state government.

If the tax money was believe it might not be so bad, and it might make for a cute skit on Saturday Night Live. But the reality for GLBT couples is that while the tax authorities require this fantasyland filing system, the very real and factual consequences are entirely legally binding and financially relevant. Plus they mean that you have to invest lots more time filling our your returns – while running a much higher risk of sending up a red flag (or rainbow colored one as the case may be) that will incur a dreaded audit. And if you hire a professional to prepare your taxes, you can expect to pay as much as four times the going rate – since you have to fill our four times as much paperwork.

The bottom line is that the typical tax breaks for real estate enjoyed by the majority of Americans are limited for GLBT couples. And even when you do qualify for them, they are harder to verify and can be a huge hassle at filing time.

But the good news – which is not negated by current tax laws – is that ownership of real estate still pays off with a much greater return than other investment vehicles. Interest rates have been slashed six times in as many months. Buying and building a home has not been this affordable in years, and the potential for equity appreciation is extraordinary.

More FHA insured loans are available. Veterans are eligible for no-money-down fixed rate loans. Recent emergency changes that relaxed limits on conventional loans allow you to borrow almost twice as much at the same rates. The outlook is wonderful. Meanwhile, keep reminding your elected officials that GLBT taxpayers deserve true equality under the law.

For experienced Realtors to help you understand and take advantage of the perks of property ownership, visit www.GayRealEstate.com or call toll free          1-888-420-MOVE       (6683). This global online GLBT real estate resource is the largest in the world.

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