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  1. #1
    GregG is offline Junior Member
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    Dec 2005
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    HGTV Dream Home Worth Winning?

    This is not really a legal question.. Just a matter of casual conversation.. HGTV gives away a dream home each year..

    [url]http://www.hgtv.com/hgtv/dream_home/[/url]

    I believe the home this year is worth 2.1 million dollars... If you win, you must pay federal and state taxes.. I think you can use the home equity to pay the taxes.. Even so, wouldn't the tax payment on the winnings alone would be something like $2000 per month if financed 30 years. What about insurance? property taxes? How is it possible for an average income person to live in this house for a year before unloading it? I would think payments would be due on the equity.. I suppose if you take the home's equity, pay off all your current debts and mortgage.. Maybe $2,000 to $2,500 a month isn't so bad if you have no other debts..

    From the stuff I read, most winners live in the home for a year or so then unload it. The profit from the sale is usually 1 to 1.5 million. Is it risky winning the home and living in it for a period of time? Still the profit from the past sale's seem good.. What are the chances maxing out the home equity before you can unload it.. Just curious.. it sounds like a prize that would be interesting to win, but are you playing Russian Roulette?
    Last edited by GregG; 01-08-2006 at 05:37 AM.
  2. #2
    rmet4nzkx is offline Senior Member
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    Of course there are many legal and financial questions associated with such a large winning and anyone lucky enough to win would be well advised to retain both financial and legal counsel which of course costs money. Typically, unless cash type winninga such as lotterys, the tax implications frequently encourage winners of large prizes to liquidate their winnings in order to pay the taxes and even efforts such as paying the taxes like Oprah did when she gave away hundred's of cars still created undue tax burdens for the winners who could not bare them either.

    I understand that there is a $250,000 cash prize to the grand prize winner from a lending firm, whether or not that is in the form of a home equity loan or not is not certain and since the home is complete and furnished some time before it is awarded, there is some equity naturally built up. Each home to date has been sold and some more than others may be easier to sell at a profit than others. Depending on a person's assets, they may be able to access retirement plans. This home is over 5,000 sq feet and could easily hold a large extended family with combined incomes to offset costs, that is if they could move their work there or work from home. It could also be used for a vacation rental or B&B operation and still break even on costs. It is also possible that it could be transfered to a non profit or become headquarters to a small cooporation if zoning allowed such. Not having all the details of the agreements, there may be other options.

    These are turn key homes not leaving much room for your personal possessions and with only a two car garage for storage, lol, someone might find themselves in the business of selling items on the internet to offset costs.
  3. #3
    HomeGuru is offline Senior Member
    Join Date
    May 2000
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    Quote Originally Posted by GregG
    This is not really a legal question.. Just a matter of casual conversation.. HGTV gives away a dream home each year..

    [url]http://www.hgtv.com/hgtv/dream_home/[/url]

    I believe the home this year is worth 2.1 million dollars... If you win, you must pay federal and state taxes.. I think you can use the home equity to pay the taxes.. Even so, wouldn't the tax payment on the winnings alone would be something like $2000 per month if financed 30 years. What about insurance? property taxes? How is it possible for an average income person to live in this house for a year before unloading it? I would think payments would be due on the equity.. I suppose if you take the home's equity, pay off all your current debts and mortgage.. Maybe $2,000 to $2,500 a month isn't so bad if you have no other debts..

    From the stuff I read, most winners live in the home for a year or so then unload it. The profit from the sale is usually 1 to 1.5 million. Is it risky winning the home and living in it for a period of time? Still the profit from the past sale's seem good.. What are the chances maxing out the home equity before you can unload it.. Just curious.. it sounds like a prize that would be interesting to win, but are you playing Russian Roulette?

    **A: it still would be worth it.

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