Off Topic: How much home can you afford-not what you think

User Forum Topic
Submitted by moneymaker on January 12, 2014 - 10:06am

I can't afford to pay the taxes and upkeep on the Ronald McDonald home but I think I can afford the taxes and upkeep on the HGTV home. Anything that costs more than my current mortgage to upkeep and pay taxes on is just not a realistic alternative for me or most people I would think. That is why I am tempted, but have to decline to enter the Ronald McDonald raffle, I will however be entering the HGTV drawing.

Submitted by spdrun on January 12, 2014 - 10:09am.

If you're given a home with high maintenance for free, either sell the dern thing or figure out how to make money from renting it -- you don't have to live in it.

Submitted by CDMA ENG on January 12, 2014 - 10:34am.

Lol... Did the same analysis in my head last night!

CE

Submitted by scaredyclassic on January 12, 2014 - 1:19pm.

i was just discussing with my kid how every time you acquire a possession it's kind of got a n accompanying maintenance/insurance/care factor. there is nothing you can get that is not a pain in some way to keep. he kind of got it, although i suppose he is thinking more along the line of consumables which aren't really keeping things.

what is there one can get that is not a chore to keep?

good health? not a "thing"...

we did yesteday buy some very old industrial style styeel and wood pallets from an old envelope factory, heavy and very beat up, for a coffee table, which ianticipate will have a very low maintenance factor.

kind of the opposite of the fancy new european car my wife acquired.

even a rental home just seem s like a pain in the ass

Submitted by CA renter on January 12, 2014 - 5:39pm.

So your wife is driving around in a fancy European car while you just got rid of your decades-old, cat-urine-stinking Honda with torn upholstery? Too funny! :)

Submitted by CA renter on January 12, 2014 - 5:41pm.

Houses are incredibly expensive, even if they are "free."

Submitted by spdrun on January 12, 2014 - 5:57pm.

Bet the Honda is/was more reliable than any modern Euro-peon car :)

Submitted by Coronita on January 12, 2014 - 8:33pm.

Lol.. You can always take the cash prize.....

You do realize how this raffle works, don't you?

Basically this charity selects a homeowner that has his multi-million home on the MLS.. They agree to take their home off of the MLS during the raffle dates, in return for marketing/PR from the charity and the possibility that the raffle "winner" will want the house (doubt it)...

The actual winner has a choice between getting that home (which most likely they won't take it because they wouldn't be able to afford the income taxes on the home + property tax + other costs of upkeeping the home) OR they choose the cash prize, which is considerably less (around $1million)..

The "owner" of the dream home basically gets a free advertisement of his/her estate that is up for sale and the possibility that some raffle winner will want the home, upon which the charity buys the home at the listed price.

Don't think of it as a raffle ticket.....Think of it as a high yield junk bond :)

Submitted by Coronita on January 12, 2014 - 8:26pm.

This really isn't any different than people who win all those big prizes on the Price is Right... They lady who recently won then Audi R8 convertible is most likely going to take the cash prize instead of the actual car... I seriously doubt she has the finances to pay for the income taxes, registration,etc for a $150k+ new car...

http://www.autoblog.com/2013/12/30/woman...

Submitted by spdrun on January 12, 2014 - 8:33pm.

The actual winner has a choice between getting that home (which most likely they won't take it because they wouldn't be able to afford the income taxes on the home + property tax + other costs of upkeeping the home)

Arrange a loan at 50% LTV (easy enough to do, regardless of income) to cover taxes and other expenses till the home is sold.

Submitted by Coronita on January 12, 2014 - 8:36pm.

spdrun wrote:

The actual winner has a choice between getting that home (which most likely they won't take it because they wouldn't be able to afford the income taxes on the home + property tax + other costs of upkeeping the home)

Arrange a loan at 50% LTV (easy enough to do, regardless of income) to cover taxes and other expenses till the home is sold.

The problem is I believe the income taxes are due upfront...Just like any other type of raffle (like the Price is Right)..

Also there is a huge difference between what the actual home is sold and what the owner listed the home in the MLS.... That $4million+ home that MCD quoted is basically the asking price of what the seller wants, not necessarily what the home will actually get....

Also, you aren't going to get a 50% LTV on a $3-4million home when you don't have anywhere near the income to back it up when you apply for the loan...

For almost everyone, the lump sum payment makes greater sense.

Submitted by spdrun on January 12, 2014 - 8:40pm.

(1) Are lottery winnings subject to the lifetime gift tax exclusion (several million $), or are they taxed as straight income?
(2) If you're dealing with hard-money lenders and are willing to pay 10+% p/a, why not? Assuming a clear exit strategy of selling the home, the loan would be worth the risk to some. QM loan obviously won't happen, but there are other means of borrowing with less pleasant terms.

Submitted by Coronita on January 12, 2014 - 8:43pm.

spdrun wrote:
(1) Are lottery winnings subject to the lifetime gift tax exclusion (several million $), or are they taxed as straight income?
(2) If you're dealing with hard-money lenders and are willing to pay 10+% p/a, why not? Assuming a clear exit strategy of selling the home, the loan would be worth the risk to some. QM loan obviously won't happen, but there are other means of borrowing with less pleasant terms.

I'll let you know when I win :)

Submitted by scaredyclassic on January 12, 2014 - 10:36pm.

It's already too much of a hassle. Screw it. I don't want it. I don't want to win anything. Fuck it...i don't need the headache.

Submitted by Essbee on January 12, 2014 - 11:09pm.

So random... about a year ago, I googled a colleague of mine and accidentally found that he had won the Ronald McDonald house several years back (before we worked together). I've never quite figured out how to ask him about it... "so, I was googling you the other day..." Ummm, no.

Submitted by livinincali on January 13, 2014 - 10:01am.

flu wrote:
This really isn't any different than people who win all those big prizes on the Price is Right... They lady who recently won then Audi R8 convertible is most likely going to take the cash prize instead of the actual car... I seriously doubt she has the finances to pay for the income taxes, registration,etc for a $150k+ new car...

http://www.autoblog.com/2013/12/30/woman-wins-audi-r8-price-is-right-biggest-prize-ever/

There is no option for a cash prize on the price is right. You can either take the prize and pay income taxes on the full retail amount or you can forfeit the prize. For a specialty item or something non transferable like a trip that would be hard to sell on craigslist for something at least 50% of full retail it might be better to just forfeit prize.

Submitted by scaredyclassic on January 13, 2014 - 10:47am.

Who pays actual retail? Seems punitive to tax on full retail

Submitted by Coronita on January 13, 2014 - 11:33am.

livinincali wrote:
flu wrote:
This really isn't any different than people who win all those big prizes on the Price is Right... They lady who recently won then Audi R8 convertible is most likely going to take the cash prize instead of the actual car... I seriously doubt she has the finances to pay for the income taxes, registration,etc for a $150k+ new car...

http://www.autoblog.com/2013/12/30/woman-wins-audi-r8-price-is-right-biggest-prize-ever/

There is no option for a cash prize on the price is right. You can either take the prize and pay income taxes on the full retail amount or you can forfeit the prize. For a specialty item or something non transferable like a trip that would be hard to sell on craigslist for something at least 50% of full retail it might be better to just forfeit prize.

Well maybe not anymore, but at about 10 years ago, a friend of a friend who mentioned they won showcase on TPIR mentioned that they were offered cash in lieu of the prizes at the end... It was kinda a random meeting awhile ago.... We got on the topic of gameshows, because my friend was on going to be on Jeopardy, so one of his friends started talking about TPIR, because she mentioned about winning the showcase, and we were all thinking how did you pay for the taxes on it....

Some of it had to do with if the items were already shipped yet or not....(technicalities)...

Submitted by pencilneck on January 13, 2014 - 11:37am.

If I recall correctly, a few years ago (2009?) they failed to make the reserve to have the grand prize drawing. They nearly certainly won't have the same problem this year, but I'm still not overly fond of this sort of raffle.

"A minimum of 61,375 tickets must be sold by 11:59 p.m., May 2, 2014 for the Grand Prize winner to have a choice of the House or the $2,100,000 annuity or a onetime $1,400,000 cash payment. If fewer than 61,375 tickets are sold by 11:59 p.m. Friday May 2, 2014, the raffle will be held as scheduled, and prizes will be awarded as advertised with the exception that the Grand Prize winner will receive a choice between a sum equal to 50% of the Net Raffle Proceeds paid as an annuity over 20 years, not to exceed $1,300,000 or a onetime cash payment of 70% of the annuity value, not to exceed $900,000."

Submitted by UCGal on January 13, 2014 - 1:27pm.

spdrun wrote:

The actual winner has a choice between getting that home (which most likely they won't take it because they wouldn't be able to afford the income taxes on the home + property tax + other costs of upkeeping the home)

Arrange a loan at 50% LTV (easy enough to do, regardless of income) to cover taxes and other expenses till the home is sold.

The HGTV house grand prize includes $250k cash - presumably to pay taxes and have enough left over to fill the tank of the gas hog car that comes with it.

(The GM SUV fits in the garage with literally just centimeters to spare... Why not build a slightly deeper garage if you're giving away a car that is so oversized?)

Submitted by Coronita on January 13, 2014 - 2:12pm.

So... Why not have a pigg group buy in?

Submitted by Coronita on January 13, 2014 - 2:13pm.

....On second thought....This isn't going to go well. I can see that if someone actually does win, there will be a legal fight in which ticket was part of the group buy in and which ticket was an "individual purchase"...

Plus, with scardey involved, we know we are really screwed...Since in disputes like this, lawyers always win.......

Never mind... Bad idea.....

If you have your raffle ticket, you can keep them... Period.....

Submitted by joec on January 13, 2014 - 7:46pm.

pencilneck wrote:
If I recall correctly, a few years ago (2009?) they failed to make the reserve to have the grand prize drawing. They nearly certainly won't have the same problem this year, but I'm still not overly fond of this sort of raffle.

"A minimum of 61,375 tickets must be sold by 11:59 p.m., May 2, 2014 for the Grand Prize winner to have a choice of the House or the $2,100,000 annuity or a onetime $1,400,000 cash payment. If fewer than 61,375 tickets are sold by 11:59 p.m. Friday May 2, 2014, the raffle will be held as scheduled, and prizes will be awarded as advertised with the exception that the Grand Prize winner will receive a choice between a sum equal to 50% of the Net Raffle Proceeds paid as an annuity over 20 years, not to exceed $1,300,000 or a onetime cash payment of 70% of the annuity value, not to exceed $900,000."

Every year I see this raffle/ad, I am tempted to buy. But after looking at the price of $150. I always figure I can get the same dream/high with a $1-2 mega millions or power ball ticket...

I end up not winning neither

You also need to spend $400 or something on this to get entered in the bonus drawings probably to make it worthwhile since the odds of the grand prize is less likely I'd guess...

Submitted by scaredyclassic on January 13, 2014 - 8:01pm.

Please no group buy in. I hate lotteries. But when there's a group buy in I feel compelled to buy in because I'd feel so shitty if I lost and all of piggingtonia were gloating of their windfall. But I definitely don't ever want to buy a lottery ticket or any portion thereof. I hate all gambling but esp lotteries. If I were a betting man which I'm not I'd bet on me.

Incidentally saw the hustler 1961 on netflix w Paul newman. Awesome flick. On the dangers of gambling, in part vis a vis your soul.

Submitted by spdrun on January 13, 2014 - 8:20pm.

The one time I bought a lottery ticket, I won ... the price of the ticket.

Submitted by Hobie on January 14, 2014 - 8:13am.

Better yet... have a Pigg House Lottery!

Same deal as the McHouse but we pick some house in SD, or better yet some pigg mansion, collect the $$, fail to meet the min number to let the house go, and run a small raffle for the $100 second and third price runner up 'winners'. Have big party later!! Woo hoo!

Submitted by scaredyclassic on January 14, 2014 - 9:00am.

There are definitely laws governing litteries. Don't dabble in fraudulent lotteries. That us good advice right th etere.

Submitted by Coronita on January 14, 2014 - 11:28am.

Hobie wrote:
Better yet... have a Pigg House Lottery!

Same deal as the McHouse but we pick some house in SD, or better yet some pigg mansion, collect the $$, fail to meet the min number to let the house go, and run a small raffle for the $100 second and third price runner up 'winners'. Have big party later!! Woo hoo!

Cool.... I nominate someone that lives in Del Mar Mesa to donate their home...

Submitted by moneymaker on October 18, 2018 - 1:19pm.

Time to buy a lottery ticket? Odds of winning $329 Million in cash after taxes is 1 in 303 Million. Just hope you don't have to share the winnings!

Submitted by TeCKis300 on October 18, 2018 - 9:04pm.

scaredyclassic wrote:
i was just discussing with my kid how every time you acquire a possession it's kind of got a n accompanying maintenance/insurance/care factor. there is nothing you can get that is not a pain in some way to keep. he kind of got it, although i suppose he is thinking more along the line of consumables which aren't really keeping things.

what is there one can get that is not a chore to keep?

good health? not a "thing"...

we did yesteday buy some very old industrial style styeel and wood pallets from an old envelope factory, heavy and very beat up, for a coffee table, which ianticipate will have a very low maintenance factor.

kind of the opposite of the fancy new european car my wife acquired.

even a rental home just seem s like a pain in the ass

What about the acquired wife? I assume the european car was maintenance for said wife.

Of course, I'm realizing this for my own situation...

Submitted by gromit on October 19, 2018 - 9:35am.

TeCKis300 wrote:
scaredyclassic wrote:
i was just discussing with my kid how every time you acquire a possession it's kind of got a n accompanying maintenance/insurance/care factor. there is nothing you can get that is not a pain in some way to keep. he kind of got it, although i suppose he is thinking more along the line of consumables which aren't really keeping things.

what is there one can get that is not a chore to keep?

good health? not a "thing"...

we did yesteday buy some very old industrial style styeel and wood pallets from an old envelope factory, heavy and very beat up, for a coffee table, which ianticipate will have a very low maintenance factor.

kind of the opposite of the fancy new european car my wife acquired.

even a rental home just seem s like a pain in the ass

What about the acquired wife? I assume the european car was maintenance for said wife.

Of course, I'm realizing this for my own situation...

And the wife is maintenance for the self.

Even your health is a chore to maintain.

It's the law of entropy: nothing can be maintained without effort.

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