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Would you spend $10 Million on a home.

Topic closed. 83 replies. Last post 4 years ago by Teddi.

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Kunming
China
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Posted: May 14, 2013, 10:24 pm - IP Logged

I think whether or not you would buy a $10 million home depends on where you are at in your life. The older you get, the less important it is having an expensive home is to you. That being said, I wouldn't buy a house that expensive or that big. I would want to buy a home where I felt secure and safe. A place where the surroundings are clean and peaceful. Where neighbors are friendly.

Play to win!

    helpmewin's avatar - dandy
    u$a
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    Posted: May 14, 2013, 10:26 pm - IP Logged

    Suppose you won the $Billion and walked away with $300+ million. Could you be happy in Malibu or Aspen?

    http://realestate.msn.com/mega-homes-in-the-priciest-zip-codes

    you have a new friend LOL

    Let it Snow Snowman

      helpmewin's avatar - dandy
      u$a
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      Posted: May 14, 2013, 10:27 pm - IP Logged

      Suppose you won the $Billion and walked away with $300+ million. Could you be happy in Malibu or Aspen?

      http://realestate.msn.com/mega-homes-in-the-priciest-zip-codes

      Would you spend $10 Million on a homeNo Nod

      Let it Snow Snowman

        Teddi's avatar - Lottery-008.jpg

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        Posted: May 14, 2013, 10:40 pm - IP Logged

        So, I was thinking no way would I ever spend $10m on a home even if it was possible... then I came across this:

        "Exquisite Colorado Estate on 370 bucolic acres in Saddle Notch, Loveland surrounded on three sides by open space. State of the Art log home designed by Architect Kathy Scott and built by Pioneer Log Homes of British Columbia with incredible attention to detail. All interior wood surfaces designed and created by homeowner's personal company Genesis Innovations. Extraordinary hand carved kitchen cabinets. Gorgeous hand planed hickory wood floors. Immense carved pieces throughout created specifically for the home by artist Paul Stark. Beautiful custom light fixtures by artist, Peter Fillerup. Stone hearths from indigenous rock."

        http://www.equestriansothebysrealty.com/eng/sales/detail/10-l-868-4462847/2480-saddle-notch-road-loveland-co-80537

        home

         

        Entry

        There seems to be enough room to house other family members and not have to see them if you don't want to. So I could be persuaded....

         

        Go ahead, click the link... you know you want to... it's worth it. LOL.

        LOL. Never say never, that's when fate steps in to prove you wrong. Hyper

          Teddi's avatar - Lottery-008.jpg

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          Posted: May 14, 2013, 10:59 pm - IP Logged

          I think whether or not you would buy a $10 million home depends on where you are at in your life. The older you get, the less important it is having an expensive home is to you. That being said, I wouldn't buy a house that expensive or that big. I would want to buy a home where I felt secure and safe. A place where the surroundings are clean and peaceful. Where neighbors are friendly.

          Absolutely. I think the older you get, not only is it less important to try to outdo the Joneses, a house of that size would require a lot of time, effort and upkeep, even if you had a staff. Seems like too much of a bother to have in your senior years. 

          That being said, Judge Judy built her dream home a couple years ago for $40 million. Of course, part of why it cost so much is because she had it built in under 4 months, by a builder who specializes in expediting mansions. The crews work around the clock in shifts. few hundred men can be working on the site on any given day. But still, it's 23,000 sf, on 5 acres, 13 bathrooms, gatehouse, guesthouse and pool house. 50 seat movie theater, a snoring room in the master suite (which I'd love), and when asked why? They said: why not? Which is as good an answer as any. They struggled to make ends meet when they were younger, they want to spend it and enjoy it now. 

          But she's always talking about her grandkids so I'm guessing they were a big factor in the size and amenities of the house. More power to her.

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            NY
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            Posted: May 15, 2013, 10:49 am - IP Logged

            So, I was thinking no way would I ever spend $10m on a home even if it was possible... then I came across this:

            "Exquisite Colorado Estate on 370 bucolic acres in Saddle Notch, Loveland surrounded on three sides by open space. State of the Art log home designed by Architect Kathy Scott and built by Pioneer Log Homes of British Columbia with incredible attention to detail. All interior wood surfaces designed and created by homeowner's personal company Genesis Innovations. Extraordinary hand carved kitchen cabinets. Gorgeous hand planed hickory wood floors. Immense carved pieces throughout created specifically for the home by artist Paul Stark. Beautiful custom light fixtures by artist, Peter Fillerup. Stone hearths from indigenous rock."

            http://www.equestriansothebysrealty.com/eng/sales/detail/10-l-868-4462847/2480-saddle-notch-road-loveland-co-80537

            home

             

            Entry

            There seems to be enough room to house other family members and not have to see them if you don't want to. So I could be persuaded....

             

            Go ahead, click the link... you know you want to... it's worth it. LOL.

            "surrounded on three sides by open space"

            Sounds like that 4th side might be a deal breaker.


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              Posted: May 15, 2013, 10:52 am - IP Logged

              Absolutely. I think the older you get, not only is it less important to try to outdo the Joneses, a house of that size would require a lot of time, effort and upkeep, even if you had a staff. Seems like too much of a bother to have in your senior years. 

              That being said, Judge Judy built her dream home a couple years ago for $40 million. Of course, part of why it cost so much is because she had it built in under 4 months, by a builder who specializes in expediting mansions. The crews work around the clock in shifts. few hundred men can be working on the site on any given day. But still, it's 23,000 sf, on 5 acres, 13 bathrooms, gatehouse, guesthouse and pool house. 50 seat movie theater, a snoring room in the master suite (which I'd love), and when asked why? They said: why not? Which is as good an answer as any. They struggled to make ends meet when they were younger, they want to spend it and enjoy it now. 

              But she's always talking about her grandkids so I'm guessing they were a big factor in the size and amenities of the house. More power to her.

              I Agree! Go for it Judy.

                dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                Oklahoma
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                Posted: May 15, 2013, 11:00 am - IP Logged

                Absolutely. I think the older you get, not only is it less important to try to outdo the Joneses, a house of that size would require a lot of time, effort and upkeep, even if you had a staff. Seems like too much of a bother to have in your senior years. 

                That being said, Judge Judy built her dream home a couple years ago for $40 million. Of course, part of why it cost so much is because she had it built in under 4 months, by a builder who specializes in expediting mansions. The crews work around the clock in shifts. few hundred men can be working on the site on any given day. But still, it's 23,000 sf, on 5 acres, 13 bathrooms, gatehouse, guesthouse and pool house. 50 seat movie theater, a snoring room in the master suite (which I'd love), and when asked why? They said: why not? Which is as good an answer as any. They struggled to make ends meet when they were younger, they want to spend it and enjoy it now. 

                But she's always talking about her grandkids so I'm guessing they were a big factor in the size and amenities of the house. More power to her.

                You go Girl (Judge Judy)Thumbs Up

                I Love Pink & Green 1908


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                  Posted: May 15, 2013, 11:40 am - IP Logged
                  • Taxes on a $10M (14,000 square ft) house in Palm Beach county...on the water is $67k. But we can round that up to $6k per month for the sake of this convo.
                  • Let's pretend you can actually do this and assign $15K per month on utilities (light, water, gas), and you'd probably have to keep every light on 24/7 and run water constantly to get there.
                  • Security system, housekeeper, gardening, homeowners and flood insurance we can guesstimate to be 15K a month, but let's tack on extra $$ for an umbrella policy...and cable. So put that up $20k per month. 
                  • Now let's add 15K per month for any incidentals on the house. Maybe you'll need to patch the roof or fix a fence.
                  • For everything, and asuming you're in a party house where lights, water, hot tub are constantly in use, we're up to $56,000 per month. Round that up to $60K for anything else I might have missed like HOA fees, PPV boxing and a butler. $60,000 per month = $720,000 per year. But let's still add an addtl $30K for anything else house-related that could even pop up like an unexpected hike in insurance premiums. Maybe another $50k on top of that for more palm trees, a tricked out grill and a per diem personal chef. Now we've covered EVERYTHING, every conceivable eventuality and we're up to $800,000 per year. 

                  And this is Palm Beach county. Home of Billionaires' Row. Where when police, firefighters and teachers complained that the cost of living was too high, they couldn't afford to live in the county they serve, and the mayor told them to move somewhere else.

                  Take that $10M house and put it somewhere like Georgia, Tennessee, the Carolinas and your costs go way way way down. Especially if you're not on the water and you don't have to contend with monster flood policy payments. 

                  You could invest ONLY one quarter of your JP CONSERVATIVELY and make enough in interest ALONE to cover that $800K and still have another half a million dollars to play around with. Without ever needing to touch your principle. If you only invested $30M at 5% per annum, that's $1.5m in interest payments per year. That's almost double what you would need to run your $10M home. Invest $40M, $50M, $60M and...you get the picture. 

                  If after you paid every single bill and expense you can conceivably have, and still have anywhere from  1/2 a Million to $2M to play with... money left over AFTER ALL EXPENSES and STILL never ever touching the rest of the jackpot, seriously, do you really and honestly think paying an extra 3% on anything for inflation should put you in a tizzy? I guarantee an extra 50 cents for milk or an extra dollar for steak will not send you to debtors prison. Unless the US turns into a 3rd world country in your lifetime and you have to contend with a 15% -20% inflation rate, you'll be fine. Millionaires in 3rd world countries deal with those inflation rates every year and they're doing just fine. Believe me. 

                  You don't even need to break even with inflation, all you need is enough to pay your bills. Once you have that, why are you fretting about a 3% increase in anything? Whether your home value goes up or down, why would that bother you? It's paid in full. If it goes down, you have less taxes and lower insurance premiums to contend with. If it goes up, you've made a fine investment choice and you can flip it if for a profit if you want to. Either way, you're golden. 

                  The stock market could crash, you could lose the entire $30M you invested and never receive a single interest payment again and still be fine. Still $90M left. Cut back on the butler, personal chef and 24/7 hot tub parties, and you'll still manage to do more than scrape by. 

                  Do I think it's prudent to spend a possible $800K on upkeep on one house. Absolutely not. I'd either have a less expensive house in a less expensive county or allot $10M to my real estate portfolio and buy multiple properties with it. But I'm certainly not going to call it a waste or stupid for someone else to buy a $10M house if they can afford it and it's what they want. Because that's the marvelous thing about a large jackpot lottery, you don't have to be prudent. As long as you've factored in everything, considered all expenses and you can more than afford it, you can go hog wild within those parameters and enjoy life like you never have before.

                  I had written a long reply but due to my stupidity it got lost. Anyway, just want to say that this is an interesting discussion and no harm or foul is intended. It's useful to pick apart the numbers and just see exactly what the costs are...because I think too many people say well look A > B so I can afford B!  But we also have to look at other costs as well that are not on the price tag so to speak. But anyway in the end if you did have 120M cash a 10M home is certainly affordable in the sense that you can have it if you want, albeit it could be expensive. I was doing some quick looking up of Palm Beach county properties on Zillow and couple of homes that were assessed at 10M had property tax of about 180K...which was lower than I had expected. In any event, everyone does what they want with their own money and I agree with you that I personally would not want to shell out for such a home. It would be interesting to see how much insurance costs though for these massive mansions.

                   

                  The other thing with the 3% inflation is not just about price of milk and eggs...it's about the dwindling purchasing power of money. $120M in 20 years is worth less than $120M today. So if no steps are taken to preserve the power of your wealth (and you spend like crazy) you are essentially losing 3% of your money every year (aka losing out on 3.6 million a year, since that's 3% of 120M). So for investing, you want to be gaining at least 3% each year to not lose money...and then hopefully more to earn money as well. It's more than just pure cash numbers and gawk at how much money you are making each month! Thing is you are losing something like 300K/month due to effects of inflation. People just need to know that and realize that fact and take steps to preserve the power of their wealth. Of course if someone wins that much JP, then even if they lost 3% every year to inflation they would still likely have way way more than they would've ever had so not a terrible deal even if you look at the worst case scenario (aside from blowing it all of course).


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                    Posted: May 15, 2013, 11:54 am - IP Logged

                    I had written a long reply but due to my stupidity it got lost. Anyway, just want to say that this is an interesting discussion and no harm or foul is intended. It's useful to pick apart the numbers and just see exactly what the costs are...because I think too many people say well look A > B so I can afford B!  But we also have to look at other costs as well that are not on the price tag so to speak. But anyway in the end if you did have 120M cash a 10M home is certainly affordable in the sense that you can have it if you want, albeit it could be expensive. I was doing some quick looking up of Palm Beach county properties on Zillow and couple of homes that were assessed at 10M had property tax of about 180K...which was lower than I had expected. In any event, everyone does what they want with their own money and I agree with you that I personally would not want to shell out for such a home. It would be interesting to see how much insurance costs though for these massive mansions.

                     

                    The other thing with the 3% inflation is not just about price of milk and eggs...it's about the dwindling purchasing power of money. $120M in 20 years is worth less than $120M today. So if no steps are taken to preserve the power of your wealth (and you spend like crazy) you are essentially losing 3% of your money every year (aka losing out on 3.6 million a year, since that's 3% of 120M). So for investing, you want to be gaining at least 3% each year to not lose money...and then hopefully more to earn money as well. It's more than just pure cash numbers and gawk at how much money you are making each month! Thing is you are losing something like 300K/month due to effects of inflation. People just need to know that and realize that fact and take steps to preserve the power of their wealth. Of course if someone wins that much JP, then even if they lost 3% every year to inflation they would still likely have way way more than they would've ever had so not a terrible deal even if you look at the worst case scenario (aside from blowing it all of course).

                    The very first button below your posting (red and white circle) will retrieve a lost post. (last thing typed)


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                      Posted: May 15, 2013, 12:06 pm - IP Logged

                      The very first button below your posting (red and white circle) will retrieve a lost post. (last thing typed)

                      Yup I learned the hard way. I actually posted two links to 10M dollar property on the Zillow website and then I got a warning page saying I could not do so because I was new and it was spam protection. So then I hit back button but my post was lost and I didn't know about that life-preserving button. And so I hit forward button on my browser (which in other forums would reload the page and retrieve my post) but it had just tried to submit the post again and I got a 2nd warning and a account lockdown. So I just got done emailing with the webmaster to get my account back after all that fiasco.

                       

                      But definitely remember that feature now. It's quite useful!

                        Jill34786's avatar - Lottery-006.jpg
                        Windermere, FL/Franklin, TN
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                        Posted: May 15, 2013, 1:41 pm - IP Logged
                        • Taxes on a $10M (14,000 square ft) house in Palm Beach county...on the water is $67k. But we can round that up to $6k per month for the sake of this convo.
                        • Let's pretend you can actually do this and assign $15K per month on utilities (light, water, gas), and you'd probably have to keep every light on 24/7 and run water constantly to get there.
                        • Security system, housekeeper, gardening, homeowners and flood insurance we can guesstimate to be 15K a month, but let's tack on extra $$ for an umbrella policy...and cable. So put that up $20k per month. 
                        • Now let's add 15K per month for any incidentals on the house. Maybe you'll need to patch the roof or fix a fence.
                        • For everything, and asuming you're in a party house where lights, water, hot tub are constantly in use, we're up to $56,000 per month. Round that up to $60K for anything else I might have missed like HOA fees, PPV boxing and a butler. $60,000 per month = $720,000 per year. But let's still add an addtl $30K for anything else house-related that could even pop up like an unexpected hike in insurance premiums. Maybe another $50k on top of that for more palm trees, a tricked out grill and a per diem personal chef. Now we've covered EVERYTHING, every conceivable eventuality and we're up to $800,000 per year. 

                        And this is Palm Beach county. Home of Billionaires' Row. Where when police, firefighters and teachers complained that the cost of living was too high, they couldn't afford to live in the county they serve, and the mayor told them to move somewhere else.

                        Take that $10M house and put it somewhere like Georgia, Tennessee, the Carolinas and your costs go way way way down. Especially if you're not on the water and you don't have to contend with monster flood policy payments. 

                        You could invest ONLY one quarter of your JP CONSERVATIVELY and make enough in interest ALONE to cover that $800K and still have another half a million dollars to play around with. Without ever needing to touch your principle. If you only invested $30M at 5% per annum, that's $1.5m in interest payments per year. That's almost double what you would need to run your $10M home. Invest $40M, $50M, $60M and...you get the picture. 

                        If after you paid every single bill and expense you can conceivably have, and still have anywhere from  1/2 a Million to $2M to play with... money left over AFTER ALL EXPENSES and STILL never ever touching the rest of the jackpot, seriously, do you really and honestly think paying an extra 3% on anything for inflation should put you in a tizzy? I guarantee an extra 50 cents for milk or an extra dollar for steak will not send you to debtors prison. Unless the US turns into a 3rd world country in your lifetime and you have to contend with a 15% -20% inflation rate, you'll be fine. Millionaires in 3rd world countries deal with those inflation rates every year and they're doing just fine. Believe me. 

                        You don't even need to break even with inflation, all you need is enough to pay your bills. Once you have that, why are you fretting about a 3% increase in anything? Whether your home value goes up or down, why would that bother you? It's paid in full. If it goes down, you have less taxes and lower insurance premiums to contend with. If it goes up, you've made a fine investment choice and you can flip it if for a profit if you want to. Either way, you're golden. 

                        The stock market could crash, you could lose the entire $30M you invested and never receive a single interest payment again and still be fine. Still $90M left. Cut back on the butler, personal chef and 24/7 hot tub parties, and you'll still manage to do more than scrape by. 

                        Do I think it's prudent to spend a possible $800K on upkeep on one house. Absolutely not. I'd either have a less expensive house in a less expensive county or allot $10M to my real estate portfolio and buy multiple properties with it. But I'm certainly not going to call it a waste or stupid for someone else to buy a $10M house if they can afford it and it's what they want. Because that's the marvelous thing about a large jackpot lottery, you don't have to be prudent. As long as you've factored in everything, considered all expenses and you can more than afford it, you can go hog wild within those parameters and enjoy life like you never have before.

                        Good analysis!Thumbs Up

                        One slight exception, property tax on property in Palm Beach county for any home(not just waterfront) that is assessed at $10M is roughly three times as much at $200k.

                        Property tax on more moderate homes assessed at $3M run over 60k per year. Many other counties in Florida have extremely high property tax as well.

                          haymaker's avatar - Lottery-012.jpg
                          Egg Harbor twp.south Jersey shore
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                          Posted: May 15, 2013, 1:48 pm - IP Logged

                          "surrounded on three sides by open space"

                          Sounds like that 4th side might be a deal breaker.

                          I think the 4th side is the lake you see at the bottom of the photo.

                          Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

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                            Posted: May 15, 2013, 1:50 pm - IP Logged

                            "surrounded on three sides by open space"

                            Sounds like that 4th side might be a deal breaker.

                            Could be. All the more reason to check out that 4th side. It could mean the 4th side is a neighbor (although how close can they be with 370 acres) or the 4th side is a mountain (foothill) side. I noticed the area is actually a development as there is a HOA fee. That could be the 4th side.

                            face

                            singlewinnersinglewinnersinglewinner   

                              rdgrnr's avatar - walt
                              Way back up in them dadgum hills, son!
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                              Posted: May 15, 2013, 2:00 pm - IP Logged

                              Absolutely. I think the older you get, not only is it less important to try to outdo the Joneses, a house of that size would require a lot of time, effort and upkeep, even if you had a staff. Seems like too much of a bother to have in your senior years. 

                              That being said, Judge Judy built her dream home a couple years ago for $40 million. Of course, part of why it cost so much is because she had it built in under 4 months, by a builder who specializes in expediting mansions. The crews work around the clock in shifts. few hundred men can be working on the site on any given day. But still, it's 23,000 sf, on 5 acres, 13 bathrooms, gatehouse, guesthouse and pool house. 50 seat movie theater, a snoring room in the master suite (which I'd love), and when asked why? They said: why not? Which is as good an answer as any. They struggled to make ends meet when they were younger, they want to spend it and enjoy it now. 

                              But she's always talking about her grandkids so I'm guessing they were a big factor in the size and amenities of the house. More power to her.

                              13 bathrooms?

                              Judge Judy must have the fudge-puddles!!!