the total prize is actially $2,038,375 approx. because the home alone is 2 mill and the suv is extra. The federal taxes are just over $509,594. Then, you have to calculate how much you owe to the state where you reside. In my state, it would cost an additional 101,555. So, I would owe $110,000 after I handed over the cash prize. Some states consider it income. Some states consider it gambling winnings. It just depends on where you live. Luckily, I have that much equity in my current home. But, not everybody in this economy has a hundred grand just laying around. Yes, sometimes, you can arrange to make monthly payments, but with the utilties, a $300 a month HOA fee, a $900 a month property tax bill, and a $200 a month Homeowners insurance bill, who can afford to make a monthly payment to their state for the initital tax bill? Some people, but not most people. That's just reality.
But, isn't the idea of winning a dream home to not have to pay a mortgage anymore? What's the point of moving into a dream home and it costing your just as much or more than your old one did? You're just paying it to the government and the HOA instead of the mortgage company. Sure, you've got a beautiful home, but you're not getting ahead financially speaking. And, the 13000 doesn't include utilities or home owners insurance, which will be substantial on a 2 milion dollar home. And, don't think those HOA fees and taxes aren't going to go up every year.
Yes, Lessie, I've given it a lot of thought the last few days and conlcuded that HGTV is trying to do a good thing, but our government's and states' tax laws are making it impossible for lower or middle income people to keep the prize. I do think HGTV could have tried to build the home in an area with lower propety taxes, though. There are areas in New Mexico that have lower tax rates than Sandia Park. Maybe I'm being naive about the taxes because I'm from Alabama and used to paying only $250 a year. Even here, if my house and lot were worth 1.7 milion, my taxes would probably be $2,500 a year. But, that's a lot more manageable than ten grand. Even so, we can't blame HGTV for the tax laws. I'm disillusioned with the taxes, not the contest. I still hope I win even though, I'll have to sell it becaue i'ts going to cost $25 grand a year to maintain and we won't be able to afford that in our retirement years.
It will take almost $510,000 just to pay the feds. Then, depending on what state you reside in, you may have to pay income taxes to that state as well. You can go to your state's revenue dept. web site for more information.
I had actually done all of the tax calculating and researched what our current home is worth and how much we still owe on it, and come to the realization that we could live in the Dream Home if we won it. Then, yesterday, I found out that the annual property taxes on the Dream Home are $10,000 and the HOA fees are $3,000 and that nixed it. That is as much as we are paying for our entire mortgage, taxes, and insurance now. Why do that when we can sell it and buy or build a home with much lower property taxes and zero HOA fees? It just doesn't make sense. The property taxes are outrageous and the HOA fees unnecessary. It's almost as if HGTV doesn't want the winner to live in the dream home or they would build it in a more affordable place.
Yes, there is a community well that is maintained by the HOA and is covered by the fees.
It was already posted at approximately $10,000 per year in property taxes plus $3,000 per year in HOA fees.
I suspect that you are tyring to say something negative about HGTV, but I'm not sure because what you write is rather difficult to decipher. This is all in good fun. Relax and enjoy.
Wow, that is utterly shocking. I guess I'm spoiled living in Alabama. My property taxes are $250 per year and, no, I don't live in a van down by the river. I live in a nice average sized house on an above average sized lot. The ONLY upside is that you get to deduct that ridiculous amount from your federal income tax----THANK GOD!!!
One of the bloggers checked with the community and posted that they were $2400 per year, but someone else posted $300 per month. So, I don't know for sure. I know this for sure. Neither I nor my husband plays golf and we aren't interested in paying $300 a month for a pool when all you have to do is join the Y. And, as far as the gate goes, my watch dog has worked just fine for me so far. I'm not a big fan of the whole gated community thing. I think it's highly over-rated. It's just an excuse for developers to keep milking people long after the lots are sold. That's the one thing about this house that I DO NOT love and I wish HGTV would stop building the Dream Homes in those communities. Okay, end of sermon.