My wife's favorite TV network is HGTV, and every year they give away a "Dream Home", most of which have never been occupied by the winners because they can't afford the taxes and maintenance costs of these huge homes. This year's home was revealed tonight and is in Sandia Park, NM, a suburb of Albuquerque. From the video they showed on the introductory show, it's also in the middle of freaking nowhere. It looks like there's nothing for 20 miles in any direction.
My wife's first reaction: "I bet there's rattlesnakes everywhere out there."
My prediction - this will be another one of those homes the winners will never live in.
Last year's home was in Sonoma, a favorite town of ours. We stopped by there and took some photos in January right after the contest began. We've stopped by the house every time we've gone through Sonoma just to see if there's any signs of life, including about three weeks ago. It's pretty clear that no one is living there, and that's really a shame. It's a beautiful house, but the people that won it lived in Florida and had their family back there. I knew as soon as I heard their story they'd never move out here.
According to this July story the winners sold the house back to the developer who is now trying to sell it for $2.2 million. I haven't seen any updates since then.
We'd have moved in given it's only 20 miles or so from where our daughter is in college. HGTV should have picked us. I can do "surprised winner!!!!!" as well as the next guy (HGTV - take note).
Most years the prize has included a chunk of cash that could certainly help with the taxes and costs. This year they've included $500,000, but last year there was nothing. I guess the land costs in Sonoma kept them from adding a cash prize. Those winners were stuck with an immediate tax liability and no way to pay it.
We'll enter the contest as we have most every year, but if we win, it's for sale. My wife doesn't want a dream home complete with rattlesnakes.
UPDATE: Lots of inquiries from people wondering what the taxes will be like on the Dream Home. Well, the total value of the award will be considered regular income, so you can expect to pay federal taxes in the highest possible bracket - something like 39%. I'm not sure what New Mexico's tax rate is, but there will be state taxes on top of the federal hit. Add to that the property taxes that will be due each year on this very expensive property and you've got quite a nut to crack before you can consider living there. That's why there aren't any winners that I know if actually living in the houses they won.
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6 comments:
I've entered the HGTV Dream Home giveaway for several years and never won. The home this year is just up the street from where we currently live. It is in the middle of nowhere, but the views are outstanding. Yes, we have all sorts of wild life here, but it's quiet and convenient to everything unless you are from a big city. If I won, I would do what it took to move in. Good luck and if you happen to drive back to Sonoma, stop through Albuquerque. Shirley
I have to wonder about the income tax costs of winning a $2.2 mill house an $500K in cash. But only wonder--I'm a man of simple tastes.
Still, I lived in ABQ for 33 months and really liked it.
My main concern is when they select these spot to build do they consider safety. I will defintely be concern about rattlesnakes too with small children. I think they should take ma poll from people as to next go spot to build. or just build 3 or 4 homes in regular neighborhood that would equal the cost of building a 2.2 million home. that way people will be able to keep them and wouldn't mind relocating if the area make and sense a possible out of there own pocket they can afford to keep the house. Cynthia W.
I actually love the location! I live in Colorado in the highest incorporated town in North America and there isn't much around. But that kind of location is priceless to me. Anyone can live in a big city next door to a walgreens, home depot, mcdonalds, etc I however prefer the peace and tranquility of the dream home's location. As for rattle snakes well, you just have to teach your kids how to live amongst wildlife. We have bears and cougars aroung but our kids know what to do and what not to do around them.
Ever since I heard about the HGTV DH giveaways I have entered every year. But the thing you have to take into account is that the people who enter for this home couldn't possibly afford to live there. The people who could afford it don't bother to enter, because they already have their dream homes. So in my opinion, no one will ever inhabit the house they won as long as this contest is in existence. I was reading on the HGTV blog right before this and the one good idea I read about keeping it was to turn it into a B&B and pay the taxes every year from it and make a good income on top of it. I think that where there's a will, there's a way. But I do agree with you for the most part- no one will ever keep it. And good luck selling it by the way in this economy. PS- even if I could afford to keep it, I wouldn't just because I don't like the desert and the master bedroom looks too small if you ask me. Not to mention that my 5 kids and me and my husband couldn't feasibly fit.
In 2006 the winner did keep the house, they only lived there for a year because it was too expensive to keep up with. they made a lot of mistakes with their money though, in my opinion. Do a search on Google for 2006 dream home winner and read the story.
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