Journal Gazette from Mattoon, Illinois • Page 13

Monday, October 29, U79 Mattoon (II.) Journal Gaiette-13 Something Speeia msettia ISy'soiraess Defender- of the do mm mmmmgggmt Vr tit I i -i 1 "-ft A It wasn't too long ago that the average customer was middle-aged. Today, Irons said, the average customer tends to be In their 20's in age. The Importance of weddings and funerals to the business has diminished as business from those events is not as large a percentage of the typical flower shop as it once was. Irons said six percent of the public buys flowers on a daily basis. Yet in Europe 88 percent of the public buys flowers on a daily basis, Irons said.

"They've always been raised with it," Irons explained, "it's been a custom of theirs." By far the fastest-growing aspect of the American floral business has been the boom in green and blooming plants. Irons said the zenith of the plant-buying craze is over, but plants are still enjoying a high degree of popularity. The plant heydey lasted about four years and was spurred, in-part, Irons said, by a "back-to-nature" mood among the American public. The plant-buying public is now more selective in what plants it now wants, Irons indicated. Plants that bloom are currently the top-selling item in the floral business, Irons said.

It used to be that people held "contests" to see who could accumulate the most plants, but not anymore, he said. Irons also said the public Is buying flowers on a day-to-day basis because "they enjoy the beauty of fresh flowers at home." "We still play on emotions," Irons added. The downtown in the economy has hit floral shops both ways. Irons agreed people are less likely to purchase flowers during an economic downtown, but he pointed out a benefit. The economic climate has wrought an interest in home gardening among many people who are staying at home more and need a hobby or something to keep them occupied.

1 MMMMII JBPWMJU IB 4 Mi I' 1 I I Dan Irons keeping watch for 700 Illinois florists Harry Gaines, manager of the Cross County Hall, recently was awarded a certificate of achievement In retail marketing promotion by the National Research Bureau. The award marked the second straight year the mall's promotional activities nave been recognized In the top 10 of the nation's malls with 400,000 square feet or under. (JG Photo) In top ten florists from all over the U.S. and some overseas. The magazine Is a journal of what is happening in the floral world and does not accept any advertising.

Irons said requests for permission to reprint articles form the journal are received frequently. One article brought 25 requests for permission to reprint, Irons noted. Much of Irons' time as executive director, he said, is taken up by arranging MATTOON Dan Irons wouldn't mind if you said polnsettia plants were pretty. He'd probably be happier if he could sell you one. But ask him if poinsettia plants are really poisonous and he might turn redder than a poinsettia leaf and thrust Into your hands a pamphlet entitled "A Clean Bill of Health for the Poinsettia Plant." The poinsettia plant is not, as many people think, toxic.

Informing the media and the public is only one facet of his job as executive director of the Illinois State Florists Association. From a desk in the back of his floral shop at 505 S. 23rd, Irons overseas the needs and wants of the 700 members of the association. It's a Job that demands a lot of work and travel. Irons said, though, that the demands are not so great that he never has time to tend to what got him Into the job in the first place his floral shop.

Irons got the job six years ago when he was elected as one of 18 board of directors of the state association. The board then appointed him executive director. About every two or three years, irons rengotiates his contract, but other than that his future status as executive director is never mentioned. His desk is the "home office" for the floral association. Hardly a day goes by when Irons' phone isn't ringing off the wall with calls from florists asking how to do something or where to find out something.

The Illinois State Florists Association, among its many activities, awards scholarships to student desiring to study horticulture, gives research grants to the University of Illinois for research into ornamental horticulture, keeps watch on florists' interests in Springfield and publishes a six-times-a-year magazine. The magazine is a source of pride for the organization. Irons said its subscription list includes Realty MaiP Bag By Robert J. Bruss DEAR BOB: It's pretty discouraging trying to buy a home today. My husband and I have been looking since late August.

In that time, mortgage interest rates have gone up and so has the number of unsold homes in the town where we want to move. The realty agent told us, frankly, we can't qualify for a new mortgage at today's high interest rates and with our modest income. You would think that with about $17,000 annual income we should be able to afford a decent house, wouldn't you? Beth A. DEAR BETH: Don't give up. Persistence pays.

Thousands of people in exactly your situation are buying homes every day. If they can do it, so can you. To find a home you like and can afford, stop looking for the "red ribbon deal." That's a home in perfect condition for which the seller wants top dollar. Instead, find a motivated "don't wanter" seller, such as a person being transferred to another city, a divorce situation, an illness or death caused sale, or other situation Involving a motivated seller. Then make an offer.

Until you make a By CRAIG SANDERS Business best Home buying discouraging 3 Lumpkin gains MATTOON Richard A. Lumpkin, president of Illinois Consolidated Phone Company, has been elected third vice president of the United, States Independent fetane association (USITA). Lumpkin wHs electedTat the association's 82nd annual USITA represents over 1500 non-Bell system telephone companies. This places Lumpkin in line to be president of the organization in three years. Lumpkin is a member of a pioneer independent telephone company family.

His great-grandfather organized the Mattoon Telephone Co. in 1894 and was active in the formation of USITA in 1897. His father R.A. Lumpkin, is hoard chairman of Illinois Consolidated, and a director of USITA for many years. He was presented with the association's highest award, the Distinguished Service Medallion.

Lumpkin has been associated with Illinois Consolidated since 1963. He became vice president and treasurer in 1970 and president in 1977. Office managers appointed trade fairs and shows. He also serves as a liason for the state association to such national organizations as the Society of American Florists. "I'm probably one of the best known people in the floral industry in the state," he said.

Being in the trenches of what's happening in the floral industry, Irons has seen his industry changing. well while the over-priced expensive ones aren't moving as quickly, Don't let this temporary situation worry you. DEAR BOB: Although I realize the financial markets are in a state of flux, what is the relationship between the prime rate and mortgage rates? Chuck S. DEAR CHUCK: There is no direct relationship. But the prime rate (the interest rate banks charge their best customers) historically Is more volatile than mortgage interest rates on new loans.

At the moment, the prime rate is higher than mortgage rates, but this isn't always so. All that can be said for the relationship of these two rates is they move in the same direction, up or down, at the same time. DEAR BOB: I invest In rental houses and apartment houses. While my houses have gone up in value fantastically, my apartments haven't. Why? Gerry G.

DEAR GERRY: The market value of homes is determined by recent sale prices of similar nearby homes. For example, if several homes in your neighborhood have sold recently around $90,000 your similar home is probably worth about $90,000. But income properties are valued according to their net income. Rents for apartments have not kept pace with inflation. Landlor-Ro" Jarreau, a candidate for constable in Pointe Coupee Parish, home of constables Nolan "Chuck" Jarreau and Robert "Cow" Jarreau.

Bergners to Robert Yamamoto (standing left), advertising director for Coles Publishers, and Juantta Greene (standing right), advertising repreaeaUttre of the Journal Gazette, meet with the new Myers Brothers store manager, Mike Bond (seated right), and Marion TrumMe, dvertlsmf manager lor Bergner. Myers Brothers, located the Cross County High rates create new opportunities MATTOON John Thompson, vice president of Trucking rural Mattoon, has promoted Maxine Cole to the position of office manager. Mrs. Cole has been with the trucking firm for 13 years, holding various positions from secretary to claims agent. Mrs.

Cole and her husband Ron reside in Mattoon with their son Jerry. Thompson also announces the addition of two new secretaries to the office staff, Janice Beyers and Cindy Collins. USft" A pose Ms. Beyers of Mattoon is a graduate of Pana High School and Was formerly employed by R.R. Donnelley and Sons, as traffic assistant and secretary.

Mrs. Collins is a graduate of Newton High School. She was formerly employed by Calderwood Corp. in Charleston and Inland Container in Indianapolis, where she held the positions of executive secretary annd traffic secretary. Mrs.

Collins and her husband Jim reside in Charleston. Ms. Beyers and Mrs. Collins have attended Lake Land College, studying secretarial science. which are published mommy by tne Board of Governors of the Federal Reserve System.

The ceiling is set at 2i percent (rounded to the nearest Va of 1 percent) above the index figure. By law, the commissioner has no discretion to make adjustments in the rate of interest. Schilling Is the son of Mr. and Mrs. Joseph Schilling of Mattoon.

IIP June Depew i I I ft Lumpkin wriuen ofrcr, you'll never buy a house; You may have to make a dozen or so offers, but sooner or later you'll find a seller who will accept the offer. Look for motivated sellers whosel homes have high balance existing mortgages you can take over. In your first offer, provide for the seller to help with your financing by taking back a second mortgage. You'll be surprised how often the seller says "yes." With seller financing, you've thereby eliminated your home finance problems. DEAR BOB: I read in the newspaper that the average sale price of homes in some areas is falling.

Does this mean we are in for a real estate crash? Should we sell our home now? Mrs. L.J. DEAR MRS. L.J.: No. No.

In some towns, including my own, the average home sale prices are falling slightly. The reason is the cheaper homes are selling well, but sales of expensive homes have slowed due to the high interest rates on mortgages. Many more people can afford cheap homes than can afford expensive ones. The less expensive homes are selling property purchase. In 1978, on the average, homes appreciated in value about 14 percent.

While this pace has been continuing in 1979, in some communities the appreciation rate is slowing due to an oversupply of homes for sale. In oversupply situations, only the homes priced at their real value usually sell; the over-priced ones remain unsold. LACK OF BUYER COMPETITION. When interest rates rise, some buyers are priced out of the market. The result is lessened competition among the remaining property buyers.

In other words, a "buyer's market" results. This has already happened in many cities and will probably happen in more soon. With often only one buyer Interested in a property, he can name his own purchase terms withour fear of competition from another buyer offering a higher price or better terms. WHERE TO FIND TODAY'S BARGAINS. In just the last few weeks, home buyers have found househunting is much easier that it was previously since many potential buyers have withdrawn to the sidelines.

Those "reserve buyers" are hoping mortgage interest rates will come down. If rates do drop, by then the price of homes will probably have gone up correspondingly. the Illinois Association ot Realtors In recognition of outstanding service and contributions to the real estate profession. The Coles-Cumberland Board of Realtors will honor Newell and other area realtors at the 1979 annual banquet Nov. 3 at the Charleston Country Club.

-Harry J. "Soup" Kember Jr. of Whlfe Castle, a candidate for the House, Is taking full advantage of his nickname. His TV ads always show a can of "Kember" soup with the familiar red and white label of a national brand. Although None of the Above is not a nickname, it is the ultimate example of the name game in Louisiana politics.

He was an unknown minor candidate as warehouses leased to major tenants. I've found these buildings to be trouble-free (the tenant pays for the upkeep) and great investments with high buyer demand due to minimal management. Nick M. DEAR NICK: Thanks for the suggestion. Yes, I agree.

DEAR BOB: Thanks for sending your report "How Wrap-Around Mortgages Can Increase Your Real Estate Preofits." As a result; we sold our home with a 10 percent wrap-around mortgage and left the old, low interest VA mortgage on it. As a result, our home soldor governor when he qualified for governor as Luther Devine "L.D."Knox. But when he legally changed his name to promote his campaign theme of putting a "None of the Above" slot on election ballots, he gained instant national recognition and thousands of dollars worth of publicity he never could have bought. The name change came too late to go on the ballot, and the courts ruled it was deceptive, but None of the Above got his message across. take over MalL will be changed to Bergners within the next tew weeks.

Bond, a native of Charleston, began his retail career with Bergner's In Galeaburg 1175 where be started as a stock boy. He has served as supervisor of several areas and was assistant buyer in the downtown Peoria Bergner store. Re resides Charleston. i Av 3 v- Maximum interest rate set By ROBERT J. BRUSS Interest rates on mortgages are at all time highs.up to 13 per cent in California on single-family owner-occupied homes.

While these high rates are scaring away many home buyers, when you consider the alternative of not buying, that's even worse. Smart buyers realize that high interest rates are creating buying opportunities which didn't exist at lower rates. THE TRUE COST OF MORTGAGES. Finding the true, after-tax cost of a home mortgage is quite simple. Just multiply the loan's interest rate by your combined state and federal income tax bracket.

For example, suppose you can get a new home mortgage at 12 percent interest and that you are in a combined state and federal tax bracket of 30 percent. Twelve percent multiplied by 30 percent is 3.6 percent; subtracting 3.6 from 12 gives an 8.4 percent after-tax interest rate. In other words, after considering the income tax dollars saved for the mortgage Interest itemized deduction, the borrower-taxpayer's 12 percent home loan is really only costing about 8.4 percent. Where else can he borrow so cheaply? APPRECIATION IN MARKET VALUE. Another factor to consider is the probable appreciation in market value of the SPRINGFIELD William Schilling, acting commissioner of the Illinois Savings and Loan Commission, announced that the maximum interest rate for residential real estate loans will be 11.25 percent In November.

Schilling Is required to calculate and file the interest rate monthly based upon the yields of Long Term United States Government bonds, Mrs. Depew to be coordinator at Century 21 MATWON Mrs. June Depew has been appointed sales coordinator tor Century 21 Hutton-Matheny Realty, 1020 Broadway. In addition to coordinating the sales staff's efforts, Mrs. Depew will continue to serve as a real estate saleslady, according to Charles Hutton and Steve Matheny, operators of the agency.

Mrs. Depew and her husband, Ed, reside at 1320 S. 6th St. Newell wins realtor award CHARLESTON Dale Newell, of Robert Carlisle, Realtor In Charleston, was named Realtor-Associate of the Year for the State of Illinois at the Illinois Association of Realtors' annual convention in Chicago. The award Is not made on the basis of sales achievment, but is awarded annually to a member of.