Graduations: Today Here, Tomorrow Where?

It seems a millenium ago that my senior class at Houston St. Thomas High put on academic robes from the era of the middle ages and paraded across a stage to handshakes, diplomas and the familial tumult of proud and excited relatives and friends. Some of us had scholarships, some knew that Notre Dame or The University of Houston, or Rice Institute (now University) or one of many other institutions were awaiting our genius. There was only optimism to be seen or heard anywhere among us. After being placed on Rice's accepted-but-waiting list, I chose the more certain path to The University of Texas at Austin, where I was told I would be in something called 'Plan II', an accelerated liberal arts program. Not even sure whether Plan I was better or not, I fled in my 1958 Ford to the shining future in the state capital, where adult freedom awaited.

Well, as every single one of you over 35 knows, it is good to start young, because the passage of time guarantees only that we grow older, if we live. Whatever life successes or lack of same, we find that our anticipated assumption of great things to come falls somewhat short for most of us. Wars, health, accidents, foolishness of youth, all of the vagaries of mortal kind color and shape even the most glorious life experience. Princes and presidents and paupers find common ground in this truth. Yet life is worth the effort, family and friendship, courtship and love, teamwork and bonds forged in common victory or loss, all enrich us and allow deeper understanding. Then comes, to many, parenthood and the witness of another generation beginning the same cycle, unwilling and possibly unable to avoid it's own stumbles by learning from the advice and warnings of our most sincere guidance. They are eager to flee our protection and concern as fast as their own transport can convey them, speeding headlong into their future, which will certainly be bright and fulfilling, of course.

Except for financing it all, as we know. Mom and Dad are still looked to for the the boring stuff, like rent, food, clothes and transportation, among other things. Of these, only the rent category can be made to actually benefit parents over the term of a collegiate's education, while allowing the younger set everything this new freedom requires. Unless your youth is a budding Michael Dell, your primary hope for a positive return on your endless expenses is the purchase of a residence for your student's use rather than 4 or 5 years or more of monthly rental payments which purchase neither equity nor market appreciation, such as Austin has experienced since it's founding. Austin has about doubled in size every twenty or so years since it has existed, through every war, recession, depression and real estate cycle.

If you have other kids following the first, your gains can be made even more attractive. But in any case, this choice allows room rentals to other students, which can help with payments and upkeep, it allows tax advantages, and it creates real gains through increasing value over time. Of primary importance is obtaining the assistance of an experienced real estate professional who understands the university market as well as investment buying. Over 25 years of buying and selling for clients in the UT, Concordia and St. Edward's areas have demonstrated my skills in this market. I enjoy dealing with students and parents and any extended family or advisors involved, and will be pleased to speak with you about personal representation and assistance in evaluating your options.

About TIme...

Palestinians are firing rockets at the Israelis, who are attacking the Palestians, who are supported mainly by Iran, who is also supporting the Iraq and Afghanistan bombers, who are also occupying Pakistan, whose suicide fanatics attacked India, the latter two nations of which have nuclear weapons.

And we are really concerned about the economy and an Illinois governor who has an extremely bad haircut and worse judgement about when and where to plan shakedowns, right? Heck, the economy hurts us right here and right now, and that other stuff is sort of like tsunamis, or massively overloaded ferrys that overturn and drown hundreds of people. Great conversation starters, good for head-shaking, but nothing we can do much about, directly. Well, I don't have a plan for avoiding future ocean-borne disasters either, so isn't the state of real estate a real mess?

Here in Texas we are apparently doing pretty well compared to most other areas. That's what we hear, anyway. You tell a seller, someone who bought a property from you just a couple of years ago, who needs to get out from under that now-anchor pulling resources and credit ever deeper, that even with new paint and fixing-up, that house with ugly carpet and no-bathtub-only-a-shower has little chance to sell anytime soon. Prices are dropping steadily in most places here, and unless a property is clean and 'special', price is all there is to compete with. In a market with so many foreclosures and pre-foreclosures and just-rented-to-hang-on-as-long-as-we-cans, both sales and leasing prices are affected, and not in a owner-favorable way.

Of course, the best option is to hold the property if possible, continue to occupy it, until real estate recovers. When not possible, and a lease is not the answer either, a seller absolutely needs the advice and assistance of an experienced individual to help make the decisions on preparing the house and grounds for market, within the sellers' available budget, priced very competitively and targeted at the most likely buyers for that property. This process will determine the chance for successfully selling the house within a reasonable time frame.

Usually this advice will be obtained from an active real estate agent who knows something about the area, has had experience with different markets, who can explain various ways to increase the appeal to buyers, and who has some skill in estimating the costs of property preparation and how such work would affect the sales price. Not all agents have all of these skills and abilities.

Since 1983, I have been active in Austin real estate, and that includes every market cycle, up or down. I have been a residential appraiser, and although I am not currently licensed as an appraiser, I certainly retain that knowledge. I have owned an investment-property management company since 1986, and have long experience with house repairs and their costs. Over 25 years worth of clients have taught me what buyers look for and what they must have before they will make an offer. When it's time to negotiate, I excel at advising clients on their options at every stage. I personally follow each pending deal through the maze of timelines and important deadlines, to a successful close. All of my clients are important, and all get my full attention.

Since we can't solve the world's most serious problems from here, let's focus on your real estate issues. We can deal with those.

Jack Josey Newman