If he had 2 billion dollars: Powerball Winner Buys Massive $25.5M Hollywood Hills Home

schmookeeg said:
I was worried about California claiming nexus on a new house purchase and sending the dementors to get another 12.3%, but it seems we don't tax lottery winnings here. So that's nice.
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It's pretty shocking that CA is giving up that free money. I wonder how that got missed.
 
Jeff Oslick said:
It's pretty shocking that CA is giving up that free money. I wonder how that got missed.
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Oh... they'll find a way to get him.

I hope he has a sense of humor when he gets his property tax bill... $400K plus
 
Ventucky Red said:
I hope he has a sense of humor when he gets his property tax bill... $400K plus
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I looked up a couple on Zillow. Apparently the taxes on that house will be more like $100k per year. And he bought it for 5M under asking, so he got a discount worth 50 years of taxes. It's just hard for mortals to think about numbers this large. He's not even going to notice the taxes. He could have a $100k party at his new house every Friday night for the next 100 years and his fortune would still grow faster than his spend.
 
172andyou said:
I looked up a couple on Zillow. Apparently the taxes on that house will be more like $100k per year. And he bought it for 5M under asking, so he got a discount worth 50 years of taxes. It's just hard for mortals to think about numbers this large. He's not even going to notice the taxes. He could have a $100k party at his new house every Friday night for the next 100 years and his fortune would still grow faster than his spend.
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Point taken... would be nice.. From what I understand, what you see in Zillo is what the current tax bill is. And I am certain you are aware that with Prop 13, there will be a reassessment to 1.178512% (current LA County tax rate) of the purchase price.. This comes out to about $301,000 - we're both wrong.. But add in some"other" assessment like fire abatement, water something or another, private security (as my friend who lives near there calls it - "street rent") you start looking like you're getting up there..

If it were me, knowing what I know... that would be the last place I would buy
 
The LA County tax rate will include almost all the taxes, other than sometimes a few dollars for a local bond issue. This is also only for the first year; it will go up by 2% per year (2% of of the 1.178% $'s). And because of Prop 13, while your house value increases 4% per year (typical long term for SoCal), you property tax increases will be at half that rate of increase.
 
Jeff Oslick said:
The LA County tax rate will include almost all the taxes, other than sometimes a few dollars for a local bond issue. This is also only for the first year; it will go up by 2% per year (2% of of the 1.178% $'s). And because of Prop 13, while your house value increases 4% per year (typical long term for SoCal), you property tax increases will be at half that rate of increase.
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Some areas will have "special assessments for fire abatement, and flood control, and whatever other creative things they can tack on - where I live it is street lights, and half of them don't work. It is one of the issues with the fire that ripped through Malibu a few years back that had many of the residents asking, "what are we paying for again?"

Here is a good read on that

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Also in some of these neighborhoods, errrrr I meant Community Facilities Districts, there is also the Mello-Roos tax that can fluctuate from year to year...

Bottom line, I would love to have these problems and not worry about them... hells bells, I'm getting nervous about putting a Garmin GPS 175 in my plane... but thankfully I had enough quarters in the jar to do it :)
 
mryan75 said:
Not in this case. Conservative investments on a billion dollars will generate $30,000,000 a year.
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That's the crazy thing. At current interest rates, he could parcel it out to 4000 banks in laddered CDs and still have 30-40mil/year before taxes.
 
Probably because of the magnitude of money lost by winners with little-to-no ability to manage what they won.
 
schmookeeg said:
I can't imagine choosing the Hollywood Hills as the place to spend my fortune. Malibu, Palos Verdes, and Santa Barbara might want a word. Maybe he's a Bosch fan and wanted to be "neighbors" :D
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Nah, that's Franklin's house from GTA V.
 
Yes this winner is totally sitting around regretting his looming property tax bill. :rolleyes:
 
Years ago I knew a guy, friend of my wife's cousin, who got a huge settlement in an accident case and proceeded to blow it away. New house, expensive cars, RVs, drinks for everybody, hookers (maybe) and blow (so I heard). Money was gone inside of two years. But I did get to drive his Excalibur one night when he was too drunk. Awful car.
 
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