Winning a home?

Discussion in 'Homesteading Questions' started by CraftyDiva, Feb 16, 2004.

  1. CraftyDiva

    CraftyDiva Is anybody here?

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    Better Homes & Garden (BHG-TV) is having a drawing for a "Millon Dollar" home, the winner pays all taxes, closing costs, etc. Now if you were to win, how would you handle the costs? Take a loan with house as backing?

    I would want to sell the home and build or buy my own where I would want. Problem is, with all added expense's of winning your already in the hole.

    If you won, how would you handle it?

    Here's the entry for contest if interested. Ends 2/17/04

    http://hgtv.com/hgtv/pac_ctnt/text/0,1783,HGTV_3936_16288,FF.html
     
  2. BCR

    BCR Well-Known Member

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    When you go to the site, do not fall for the pop-up to get a free $25 gift card to Lowe's or Home Depot. I tried for ten minutes and couldn't get passed step 5. Read it all carefully.

    If you win the house, there are furnishings and a car too. All taxes, etc. arte yours to pay. Get a loan and pay them, then sell it all, keep what's left. Even if you had to pay $250K taxes, etc., after selling the house there would still be something left over for you to spend how you wished. And you could keep the furnishings that come with it if you wanted.

    I never did make it through the rigamarole to register for that either.
     

  3. CraftyDiva

    CraftyDiva Is anybody here?

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    Depending on the real estate market in the area, you may sit on that house sale for awhile. Can you afford to pay all expenses while waiting?

    I would take cash value instead of house, but rules read that's a no no.
     
  4. DAVID In Wisconsin

    DAVID In Wisconsin Well-Known Member

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    HGTV gives away a fantasy home every year. Registering always begins on Jan. 1. I've never had trouble registering. The first time you register it takes a few minutes. After that you can just type in you emal and go. I'd Sell that sucker if I won and still have a large bundle of cash to invest. Naturally, I'd go there for a week or so and live like a Rockafeller. Just to see what it feels like. But then I'd be bored with the fancy life and be ready to come home again.
     
  5. nostalgia

    nostalgia Well-Known Member

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    Gosh I don't know, it is absolutely gorgeous! I do love homesteading but I think I could live there and still have a homestead place to go when I want a vacation. :) I think I would try it for a while, then if I am not happy I could sell it I guess. I don't know if that is allowed, I know on some game shows the rules are you can not sell a prize, I don't know what rules apply here???

    I really like that doggie house. And I thought our dog was already spoilt :no: :haha:
     
  6. Cygnet

    Cygnet Guest

    *shrug* I'd probably rent the sucker out, depending on where it was located. Make it income property.

    Failing that, I'd sell it, and if it's a million dollar home and you put it on the market for, say, $500,000 it'll probably sell pretty quick to an investor and you're still ahead $250,000 if the taxes were $250,000. (Though if you sold it for $500,000 in the same year, is it a $500K home or a $1 mil home? Not sure how the IRS would view that.)

    Leva

     
  7. CraftyDiva

    CraftyDiva Is anybody here?

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    Just read the message board for the dream home. It would take 40k to take possession of the house. 15K to 20K yearly after that. Plus due in April of next year to IRS 400K :eek: :eek: :eek: . So 40K gets you in, then you have a year to come up with the rest.

    message board......
    http://boards.hgtv.com/6/ubb.x?a=frm&s=1084078532&f=4714002552
     
  8. RAC

    RAC Guest

    I guess another thing to look at is whether you would want to live there. Also, your taxes will probably only go way up from that point, unless Georgia is like CA with a property tax cap that you can plan for from year to year. And then there are any voter-approved levies for schools and such. If you don't live there, you can't vote....

    Not sure it would make good rental property, as I am not familiar with the area in general. You might be able to make it a time-share, but then it is a business and you'll have all the headaches and taxes with that, and that's assuming the zoning will allow you to do this in the first place. I guarantee if there are other equally nice houses in the area, and the people live there full-time, they are going to take a very dim view of a rental property in their midst, and will call city hall to make sure you're legal.

    Selling it could be a problem in this economy, unless you sell at a loss, and then you may still be in a hole, losses are not dollar-for-dollar write-offs.

    One thing you could do is have an independent appraisal done with comps to either confirm or reduce the value for tax purposes. People do that with prizes all the time--just because "they" say it's worth this much doesn't mean it is.
     
  9. RAC

    RAC Guest

    Also you have to figure in your other costs, insurance, utilities, etc.