Dream Home Taxes

Before buying or building a dream home, taxes need to be thoroughly evaluated. Every year, HGTV - Home & Garden Television, the TV network that broadcasts various ways to improve your home and your garden, awards the loyal viewers with a prize in the form of a "Dream Home".

But the winners known to have got this prize have never actually lived in those houses due to the huge taxes and costs involved in the maintenance of their Dream Homes.

The prize this year was a house located in Sandia Park, NM - a suburb belonging to Albuquerque. The location of the house, as imposing as its construction looks, is in the middle of nowhere. It is true that once you live in this house you are away from the busy life of the city, of noisy children in the neighborhood poking around and of everything that might not let you have a proper rest inside the comfort of your home.

This year's wining house is in the middle of the nature, but most of the viewers consider that once the winner can afford taxes, he or she can keep this dream home only for the periods of week-end or vacation when he/she needs to get away from the turmoil of a busy city. Why is everything related to the affordability?

Because, for instance, last year, the winner of the "Dream Home" rather sold back the house to the developer who is said to still trying selling it for $2.2 million. The reason was the huge taxes the winner would have paid, had he lived in that house. Another reason was that the family that won the house lived far away from the designated location and it would have meant for them to change the entire course of their life, once they would have moved in the Dream Home.

This year's Dream Home destiny

For many years, HGTV has included an amount of cash to go with the prize, to help the winners with the payments of dream home taxes and costs, but last year this amount was missing. Therefore the new residents of the dream home saw themselves in the impossibility of keeping the house for the future. This year's Dream Home, HGTV has included the cash amount of $500,000 and maybe in this way the destiny of this house will be changed.

Inquiring about the dream home taxes, the winners will find out that the total value of the prize will be considered as a regular income, therefore they can expect to pay something around 39-percent - this being the highest possible rate. Next on the list will be added the usual property taxes due to pay yearly, and as such, the destiny of this year awarded Dream Home will lay, again, within the limits of the winners' affordability.

Then the obvious question is that what is the use of winning an impressive house that is rightfully called the Dream Home, if one cannot afford to pay living in it due to the huge dream home taxes collected? So, if it is your desire and means to buy or build a dream home, then consider the taxes carefully and put these into your budget upfront so that you don't face foreclosure later.