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

[moneymaker]

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.

[spdrun]

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.

[CDMA ENG]

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

CE

[scaredyclassic]

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

[CA renter]

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! 🙂

[CA renter]

Houses are incredibly expensive, even if they are “free.”

[spdrun]

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

[Coronita]

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/

[Coronita]

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 🙂

[spdrun]

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.

[Coronita]

[quote=spdrun]

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.[/quote]

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.

[spdrun]

(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.

[Coronita]

[quote=spdrun](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.[/quote]

I’ll let you know when I win 🙂

[scaredyclassic]

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.

[Essbee]

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.

[Author]

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