Alexander Gonta

IS BUYING THE AMERICAN DREAM A GOOD INVESTMENT IN TODAY'S MARKET?

Yesterday The Hudson County MLS (HCMLS) issued it's productivity reports for 2008. The results are extremely interesting. If in 2002 a consumer decided not to buy a home or condo with his $250,000 savings this is what he would have after 6 years.

$250,000 invested in 2002:

Bank Savings.....approximately $305,000 in 2008

Stock Market.......no change after 6 years or less???

The volume of sales in 2002 and 2008 in both the HCMLS and NJTAXRECORDS.COM have about the same amount of sales in both data bases. The following is the average sale prices for both.

HCMLS
2002 $257,000
2008 $395,000

NJTAXRECORDS.COM
2002 $216,000
2008 $392,000

If this consumer purchased a home in 2002 how much would the consumer be worth today?

Think about it: it gives you a place to live, a tax shelter for your income, and something you will eventually owe free and clear when you retire. The majority of people's wealth is in the real estate holdings that they own. Please contact me today and let's discuss how today's lower prices and outstanding low interest rates make the reality of home ownership still very affordable and very possible.

Do You Believe The Dire Media-Predictions?

There will always be cynics and skeptics who will tell you that the real estate market is going to crash - these kind of people have always been around…

Meanwhile, the successful investors are still "in the game" buying and holding onto their properties as they continue appreciating in value.

Here's an example of how (for years) the media has criticized real estate investing…

Dire Media-Predictions:

In spite of all of these so called "predictions", people continue to build wealth with investment properties and save a lot of money on their taxes each year…

If you want to succeed, find someone who is already doing it and model them. You don't need to re-invent the wheel because the wealth-building system that I follow is a proven, tried and true investment-property strategy that WORKS!

The Benefits Of Investing In Real Estate

Interest rates are historically low. An economic stimulus package is around the corner. Prices have dropped in some cases. More people are returning to renting vs buying because of tighteting credit standards, which helps you as an investor. With all of the mixed-media messages surrounding us these days, it's confusing for people to know where to invest their money (be it stocks, bonds, a 401K or real estate).

In my experience there's no better way to save a bundle on your taxes (while simultaneously building your wealth) than through investing in real estate…

Here's why…

· Huge Tax Benefits - Properties typically appreciate while the IRS allows you to write your properties off as depreciating.

(This one benefit alone allows me to write off thousands every year!)

· Using "Good Debt" to Build Wealth - "Good Debt" is debt that makes you money where as "bad debt" does not, it just makes your further in debt… The benefit of "good debt" is LEVERAGE because you don't need to have a lot of money to get started - you can start with the equity from your home.

· A Balanced Investment Portfolio - You've heard the expression, "don't put all your eggs in one basket", well the same applies to investing. By investing in real estate (in addition to other investments such as your IRA, 401K, stocks and bonds) you will have a stronger and more stable investment portfolio…

· A Personal Retirement Plan - Can we even count on Social Security as a retirement option any more? When managed correctly, investment properties are a very good potential source of passive income for when you retire.

· Deferment of Capital Gains Tax - When you sell an investment property, if you made more money than you bought it for, that's called your "Capital Gains" and Uncle Sam will tax you on that gain. However, the government allows you to transfer that gain into another "like kind" property by using a 1031 tax exchange. This allows you to bypass taxation by deferring the financial gain into your next investment.

· Instant Equity - It's possible to find investment properties that are $5k, $10k, $15k (or more) below market value. When an investor buys properties like this, he or she can instantly use the equity from this for additional buying leverage.

· Long Term Growth - My method for real estate investing is about buying and holding properties for the future because I know that their value will almost invariably continue to increase!

Don't Listen To Anyone That Tells You -
You Can't Succeed By Investing In Real Estate!

Maybe you've seen the late-night TV infomercials on "How to Get Rich Quick by Investing in Real Estate" and thought to yourself, "Is this stuff for real?". In my opinion, most of these campaigns are just designed to sell you a bunch of expensive information - rather than real world investment properties.

The key to winning at the "game of real estate investing" is to surround yourself with positive, forward-thinking people who are already doing it themselves. People who will support your vision for building wealth - and "coach you" to succeed.

You and I have a responsibility to prepare for our retirement by making our money work for us - and buying investment property is one of the most effective, long-term, tried and true ways to do this (provided you make wise investment decisions and manage them properly).

My job is helping regular people (just like you) - to successfully find, purchase, and maintain high-quality, "wealth-building" investment properties - making sure that we carefully evaluate your financial needs first, so that the next investment you make - makes sense for you!