Genius! Man Raffles off Millon-Dollar House for $50 a Pop!
Now THAT's what i call getting creative! And these days, i don't blame him - it sure is one way to sell a house (you hear that stupid foreclosure neighbor?!). Imagine, owning a 6,000 square foot 6 bedroom 4.5 bath house for a crisp $50 bill - AMAZING. Here's a clip from the article i found on MSNBC:
While this is true, the odds are MUCH better than winning the lottery! Here you have a 1 in 31,000 chance of winning (possibly even less if he can't reach this desired #), whereas you have like a 1 in 175,000,000 chance of hitting the megamillions. True you're also blowing through 50 $1 bills instead of just 1, AND your prize is much smaller, but still - SOMEONE has to win it!
But then again, let's just say for the fun of it you DO win. Now you're a proud owner of a whole bunch of taxes, upkeep, etc...esp if you already own a home (and i'm willing to guess most people playing don't actually NEED this home). So what if someone wins who can't afford to maintain and keep it all up like some neighbors are afraid of? Well, then you just sell it! But now, if you sell it, the neighbors get SUPER pissed! Esp. if you, let's say, unload it for half it's value - $500k. Now it lowers all the other property values in the neighborhood, right? Boy....what a crazy situation! Wanna play yet? Here's some more on it:
So yeah, I'm still considering getting in on the action (visit fiftydollarhouse.com to play), but i'm more likely to chalk it up to a "good idea" and then forget about it tomorrow ;)
"After more than a year of making major improvements on the home, Walters has been hit doubly hard. He's in the mortgage business, and as his property value plummets, his paycheck is also shrinking....Walters has to donate a portion of the ticket sales to charity, so he calculates that he must sell 31,000 tickets by the end of the year to meet his goal. He's already more than a third of the way there, with 10,000 tickets sold."So is it really worth the shot? Man, i dunno...the gambler in me REALLY wants to play, but the smart-financial side of me says hooooooooooooold up - your odds of winning are slim to none buster.
While this is true, the odds are MUCH better than winning the lottery! Here you have a 1 in 31,000 chance of winning (possibly even less if he can't reach this desired #), whereas you have like a 1 in 175,000,000 chance of hitting the megamillions. True you're also blowing through 50 $1 bills instead of just 1, AND your prize is much smaller, but still - SOMEONE has to win it!
But then again, let's just say for the fun of it you DO win. Now you're a proud owner of a whole bunch of taxes, upkeep, etc...esp if you already own a home (and i'm willing to guess most people playing don't actually NEED this home). So what if someone wins who can't afford to maintain and keep it all up like some neighbors are afraid of? Well, then you just sell it! But now, if you sell it, the neighbors get SUPER pissed! Esp. if you, let's say, unload it for half it's value - $500k. Now it lowers all the other property values in the neighborhood, right? Boy....what a crazy situation! Wanna play yet? Here's some more on it:
So yeah, I'm still considering getting in on the action (visit fiftydollarhouse.com to play), but i'm more likely to chalk it up to a "good idea" and then forget about it tomorrow ;)
Labels: bargains, cockamamy indeed, home ownership, lottery
posted by J. Money at
7:47 AM
9 Comments:
There's a charity raffling off a dream house here in California, in gorgeous Marin County. It's a 2 million dollar Bay Area dream house and the raffle ticket is ONLY $150. The winner also has a cash option of 1.6 million dollars!
I'm tempted to buy a ticket. Like you said though, the taxes would be a nightmare and that's what stops me. Although taking the cash option would make paying the taxes easier.
http://www.marinraffle.com/Overview.aspx
To funny. I too am always weary of "creative" ways to buy homes. Besides, buying a home for a pittance is one thing...but being able to afford the maintenance on it is another. Taxes? New roof? General fixes? Monthly utilities? All these little costs add up to one big whopping bill. It's the sad truth, houses can be very expensive...even ones selling for $50. Who knows, maybe it needs a new foundation. :D
Wow! That's crazy! The odds are definitely better than the lottery (at this point, anyway). What happens if he can't pay off the mortgage with the raffle tickets, though? I am too chicken to play, but that's a really interesting idea.
@Messy - oh wow, i'd be ALL OVER that cash option! although, the house would finally get me to move back over to CA too ;) Maybe we should spend $200, for 2 tickets at both our sites and double our odds? haha...
@Squawkfox - haha, glass is half-empty, eh? i'll agree w/ the home ownership costs though...if the market was better, i'd be tempted to go back to renting! maybe i just have the 1st home blues though...
@Jane - that's a good question! i wonder if he'd be legally forced to sell it still? or what, give everyone their money back? weird...maybe he'll just wait until all tkts are sold or something.
What a great freaking idea - too bad I can't even afford the $50 chance!
I think Jane has a good question-what if it's not enough to pay off the balance. It is definitely a creative idea; I know I won't be buying a ticket.
If one goes to the website and reads the "RULES" of the fifty dollar house auction, it states he can extend the auction a max of 120 days OR refund each person 99% of the raffle ticket if the auction does not take place. He cannot auction the house WITHOUT the required number of tickets selling. But it is a beautiful house..... I'm considering buying a ticket. I've already sent out an email to my entire contact list with the info- maybe several of us can go in on it and up our chances. ;)
Wow, that is genius ,like you said. I hope it works for him and I wish I had $50 to spare!
Thanks for checking that out NorCalRN - guess we're all too lazy ;) and i like the way you think, going into it with others is DEF a killer idea!
let us know if you end up playing. Esp if you win! that would be so hot...
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