Andrew Chong

Position yourself to take advantage of historically low interest rates and lower the interest costs on credit cards. The fastest way to do that is to pay down credit card balances to under 20% of the limit. Further, paying down the balances will initiate a bounce in credit scores, which may lead to lower interest rates when applying for credit.

The conventional wisdom that I've conveyed to my base used to be 30% balance to the limit. I'm sure many of you have heard this number. However, we recently had a credit expert give a class at the office and he advised 18%. Since many writers have advised 30%, I've decided to merge the advice and use the 20% figure, just to be safe. Nonetheless, the message is, pay down balances (and stop maxing out your cards and paying the minimums each month).

If you're financing your lifestyle with credit cards it's a ominous sign that you're overextended, and your personal financial crises could happen at any time, especially when least expected.

Here is a thought: as individuals we should be taking steps to respond to and to prosper in this market and in the recovery when it happens. With the tremendous, unprecedented amount of government spending, the bills will come due and will usher in a period of high inflation. It's on the way. So, get liquid, pay off the credit cards (don't close them, however), cut living expenses, and pump up the savings. Inflation means higher prices for everything including food, necessities, real estate, electricity, gas. You want to be in a low-or-no-debt position with cash.

Recently Houston, Katy and surrounding areas saw the failure of one of the area's builders, Royce Homes (and its sister brand, Espree). What does this mean for Houston real estate? Bargains.

Royce closed shop with an inventory of over 300 already-built homes located in many communities all over the area. The remnant of the company is now trying to get these properties sold and has discounted the whole inventory by 20%. For example, a $150,000 home is now on sale for $120,000. That's a great bargain for a never-lived-in property.

There is a glitch, however. The people in charge are not easy to find. The listings are no longer active on the local MLS, and the company has basically ceased to exist. Fortunately, after searching around for 2 days, I finally got a reply from an obscure email, and have now established a phone contact, access to properties and the entire list of available homes.

Is a Royce home in your future? Give me a call and let's talk.

© Copyright 2005

We are there. This is the last of the series. Please enjoy and share these with your friends and neighbors.

1. Play it safe. Don't let strangers into your house, even to use the restroom. Be polite but decline.
2. Reward yourself. That was hard work. Spend the small fortune you've just made on pizza and cokes for everyone afterward. You just made room for more stuff!!
3. If push comes to shove, put stuff out on the curb. Somebody will take it. I once piled about a hundred clay bricks ("Free Landscaping Bricks") I no longer wanted by the mail box. By the next day they were all gone. I did the same with some left-over 2x4s and baseboards. Gone.
4. Do it again until the crap pile has been reduced to acceptable levels.
5. Organize and Gather. One client had boxes in the attic which he hadn't touched in 10-plus years. Go through your wardrobe - 2 or three times - and pile up items. You know what I'm talking about: jeans and clothes that don't fit anymore, clothes that you bought but which you ended up not liking once you got it home. But since you spent $50 bucks on it - 7 years ago - you didn't want to throw it out. Old t-shirts, suits, ties, belts and shoes.

Remember, the goal is to de-clutter and get rid of stuff. For all your real estate needs, whether buying or selling Houston real estate and surrounding areas give me a call.

Let me know what you think of these articles. Were they helpful? What was your favorite tip?

© Copyright 2005

Garage sellers unite! We're almost there. Please enjoy and share these with your friends and neighbors.

1. Give stuff away. If you have loads of a particular item, give one away with each purchase. For example, at another sale my friend had a case of cozies - 50 of them - from her old company. It sat in her garage for a couple years. Everyone who walked up got one. No more cozies.
2. It's not old - it's antique. Even that stereo from college has value - to somebody. Put it out, price it low, and watch it acquire a new owner.
3. Be prepared for a rain date. Always check the weather forecast the night before. If it's sunshine, you're on. If it's rain, postpone until another weekend. (Thus, don't buy an ad.)
4. Be novel. My neighbor packed a cooler with cokes and bottled water and sold them for $1 each.
5. Recognize the buying signals. Your ears should perk up when someone asks, "How much is this?" (Thus, don't use price tags.) Another signal is, "Will you take $x for it?" Your answer: "Yes!" Still another is, "I only have $x. Will you take it?"

Remember, the goal is to de-clutter and get rid of stuff. For all your Houston and Katy real estate needs, whether buying or selling real estate in Houston and surrounding areas give me a call.

What did you think?