Still interested in the Stowe HGTV Dream Home?

[deadheadskier]

It can be all yours for $3,795,000.

Friend of mine just got the listing.

https://www.facebook.com/pages/New-England-Landmark-Realty-ltd/141609522529069

 

[Nick]

That's only 1.2 million per bedroom

 

[emmaurice2]

That would be a nice commission!

I figured it would only be a matter of time before it showed up on the market. These Dream Homes are not cheap to maintain.

 

[deadheadskier]

The primary issue with selling that house is making enough profit on the sale to pay Montpelier. VT has rather restrictive property sale tax codes to discourage people from flipping homes. I believe if the owner sold that property in the 1st year after taking ownership, they would need to pay 70%, yes 70, on any capital gains they made through the sale. I believe year two it drops to 50% and then gradually goes down from there to a reasonable percentage after 7 years.

 

[gmcunni]

Ask ur buddy if it vacant and can we crash there for a party?

 

[deadheadskier]

I already offered overnight security services for the remainder of the season. Haven't heard back from her yet. :lol:

 

[Nick]

The primary issue with selling that house is making enough profit on the sale to pay Montpelier. VT has rather restrictive property sale tax codes to discourage people from flipping homes. I believe if the owner sold that property in the 1st year after taking ownership, they would need to pay 70%, yes 70, on any capital gains they made through the sale. I believe year two it drops to 50% and then gradually goes down from there to a reasonable percentage after 7 years.

That is messed up.

 

[drjeff]

That is messed up.

Nope, that's just Vermont!

 

[Geoff]

The primary issue with selling that house is making enough profit on the sale to pay Montpelier. VT has rather restrictive property sale tax codes to discourage people from flipping homes. I believe if the owner sold that property in the 1st year after taking ownership, they would need to pay 70%, yes 70, on any capital gains they made through the sale. I believe year two it drops to 50% and then gradually goes down from there to a reasonable percentage after 7 years.

The anti-flip tax declines 20% per year over 5 years.

You then have to pay state income tax on what's left of your gain.

Chances are, that dream home winner won't be showing any gain. The cost basis was set when they won the house and they already had to pay taxes on that amount.

 

[gmcunni]

anyone know, did the winner take the house and is now selling it or did they take the payoff and now HGTV is selling it?

 

[BenedictGomez]

That is messed up.

Taxes in Vermont in general are positively crippling, both personal and on business.

 

[deadheadskier]

anyone know, did the winner take the house and is now selling it or did they take the payoff and now HGTV is selling it?

owners kept it and are now selling it. I believe the value of the house at the time of the contest was around 2 million, so if they get anywhere near the asking price, they stand to make a very large pay day. As will Montpelier

 

[steamboat1]

I wonder if the seller is aware of the VT. tax code?

 

[BenedictGomez]

owners kept it and are now selling it. I believe the value of the house at the time of the contest was around 2 million, so if they get anywhere near the asking price, they stand to make a very large pay day. As will Montpelier

The price seems completely insane, regardless of the location and amenities, so I'm guessing they hope someone uber-rich who cares not about price swoops in on it.

 

[deadheadskier]

For that house and the best slopeside location in Stowe, it's actually a pretty fair price. Another friend of mine's family had the home that was torn down to build it. It was a 1970s poorly constructed ski chalet. They got $2M for it as a tear down.

The $2M value placed in the contest was low to begin with. It seems crazy, but all real estate in Stowe is.

 

[Geoff]

Taxes in Vermont in general are positively crippling, both personal and on business.

From the guy who puts his location as "Manhattan"....

New York City has the largest tax burden in the country.

 

[AdironRider]

How much of that is on petty shit like cigarettes and booze though? I almost quit when I visited there for a day a while back. Almost.

 

[BenedictGomez]

From the guy who puts his location as "Manhattan"....
New York City has the largest tax burden in the country.

Absolutely true, though if you adjust for salaries and services etc... I think you'd be positively shocked at how high the cost of living is in Vermont.

Either way, they're both abysmal, and both at the mercy of politicians who desire to take every last cent from your pockets!

 

[steamboat1]

Urrrr Ummmm....

NYC has the lowest real estate taxes in the Tri-State area.

Substantially so.

 

[deadheadskier]

Urrrr Ummmm....

NYC has the lowest real estate taxes in the Tri-State area.

Substantially so.

what does that matter when the property values are through the roof?