The Most Expensive Celebrity Homes

Between the glitz of the red carpet and their often highly publicized ongoing drama, there is something fascinating about celebrities even for the most pragmatic amongst us. With seemingly unlimited amounts of cash on hand, it is always fun to see what time of pads celebs choose to make their home and raise their families in after spending weeks on the road. What would be your priorities when buying a house if money was no object?

 

To give you some inspiration until you win the lottery, here is a list of the top 5 most expensive celebrity homes!

 

 

 

1. Bill Gates’ magnificent compound in Medina, WA

It is no surprise that one of the richest men in the world would also own one of the most expensive houses in the world. “Xanadu 2.0” is valued at over $131 million and is filled to the brim with high tech details right in line with the owner’s interest: guests can control the lighting and temperature of their surroundings thanks to a special pin, artwork displayed on the walls can be changed at the touch of a button, music speakers hidden in the walls allow your favorite music to follow you from room to room…

 

But it’s not all about the technology. The compound has access to beautiful Lake Washington (and a private beach with sand imported from Santa Lucia) and is perfect for entertaining friends and business associates with 7 bedrooms, 18 (!) bathrooms, and everything you could possibly need including 6 kitchens, a home theater that sits 20, a library sheltering priceless manuscripts, a swimming pool, and a massive dining hall that can sit up to 150 people.

 

 

 

2. Oprah Winfrey’s grand estate in Mendocino, CA

Like many other celebrities, the media mogul owns multiple homes, but she spends the most time in her over-the-top estate in Mendocino, California. Suitably named “The Promised Land,” the massive property is valued at over $90 million.

 

It includes an equestrian compound including riding rings, stables and a barn, manicured gardens, a koi pond, multiple outdoor entertainment spaces with outdoor fireplaces, a 6 bedrooms-14 bathrooms main house, and a pool with its own pool house.

 

The notoriously private celeb can also get away from it all in a lovely tea house that serves as her private sanctuary.

 

 

 

3. George Clooney’s glamorous villa in Laglio, Italy

The movie star put Lake Como on the celebrity map when he stumbled upon the graceful 18^th century Villa Oleandra in 2001 and swiftly purchased it. He has since updated the estate inside and out, bringing in all the modern comforts an A-lister is used to while preserving the historic nature of the property. He also purchased the house next door in an attempt to protect his privacy.

 

The villa, valued around $100 million, boasts 25 rooms (including ten bedrooms and eight bathrooms), a glorious swimming pool, a fully equipped gym, a “pizza room,” elegant gardens and an outdoor theater.

 

The house is available for rent if you are looking for a special vacation.

 

 

 

4. George Lucas’s “business meets pleasure” ranch in Nicasio, CA

The aptly named “Skywalker Ranch” is home to George Lucas’ Skywalker Sounds, which specializes in “sound design, mixing, and audio post-production across multiple mediums.” The campus is more than a mere workplace. It includes a 26-rooms Inn, a state-of-the-art fitness center with a heated swimming pool, a full research library and a Victorian-style main house.

 

The estate, which also features an observatory, a vineyard, and its own fire station (!), is valued around $100 million.

 

 

 

5. Jay Z and Beyoncé’s sleek mansion in Bel Air, CA

The powerhouse and highest-paid celebrity couple put down roots in 2017 in massive hillside estate, which they purchased for the staggering price of $88 million. The ultra-modern compound boasts all the luxury features celebs like Beyoncé and Jay-Z could desire, including the main house with over 30,000 square feet of living space, an in-house spa and fitness center, no less than four swimming pools, a helipad and a garage accommodating up to 15 cars.

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What Do Mortgage Lenders Look for in a Borrower?

One of the many stressful aspects of purchasing a home is finding a mortgage lender and being approved for a loan.

 

Not many homeowners, particularly first-time buyers, are aware of the factors that mortgage lenders take into consideration when determining whether or not to approve or deny a loan application.

 

Understanding what mortgage lenders look for in a potential borrower can make getting approved for a loan much easier.

 

 

Credit History

Just like when applying for an auto loan or an apartment, mortgage lenders will want to review your credit history to get a better idea of your financial responsibility.

 

Your credit score gives lenders an idea of how you manage your money and whether or not you have a history of poor spending habits. They can view how many credit card accounts you have, how often you make late payments, and other telling factors.

 

Your credit score could impact your interest rates, the amount that lenders are willing to offer, and whether or not you’re approved at all.

 

Before applying for a home loan, you should be sure to review your credit report. Websites like annualcreditreport.com let you review your credit report from the three major credit bureaus.

 

 

Employment History

Lenders will also often assess your current employment status and employment history to determine how much of a risk it would be to approve your application.

 

Mortgage providers need to be sure that borrowers can make regular payments. As such, you’ll have to provide proof of a stable income and that you don’t have a history of short-term employment.

 

If lenders see that you don’t currently have a job or you have a history of quitting or being fired after short periods of time, your chances of approval will drop significantly.

 

 

Debt

As mortgages can add hundreds of thousands of dollars to your existing debts, potential lenders may want to know what your current debt situation is. If you’re already drowning in debt, lenders aren’t likely to trust that you’ll be able to make your mortgage payments.

 

Lenders will evaluate your debt-to-income ratio. This ratio is the amount of your monthly debt payments compared to your monthly income. Each lender will have different requirements when it comes to your debt-to-income ratio, but, as you probably guessed, the lower the better.

 

In order to reduce your debt-to-income ratio, you should try to begin paying off your largest debts before submitting your mortgage application.

 

 

Down Payment

Lastly, one of the most important factors that lenders consider is the size of the down payment that you are able to make. The larger the down payment, the less money they will need to lend you. If you are able to make a sizeable down payment, you will have a much higher chance of being approved for your requested loan.

 

Of course, you shouldn’t attempt to make a larger down payment than you can actually afford just to increase your chances of approval, but you can be sure that lenders will favor borrowers who make larger down payments.

 

Understanding what mortgage lenders look for in a borrower before submitting your application is a great way to increase your chances of being approved for the amount of money that you need to purchase your dream home.

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Can You Hurt Your Home’s Value When Renovating Your Home?

Homeowners tend to overspend on renovations, oftentimes paying an excessive amount of money for an improvement that does not add much value to the home.  The worst case scenario is spending an egregious amount of money on a home renovation that decreases the value of your property.  It really is possible to choose the wrong renovation, sink a bunch of your savings into this supposed improvement and end up reducing your home’s value.  Let’s take a look at  few examples of home renovations that have the potential to backfire in a big way.

 

 

Converting a Bedroom

It is certainly tempting to convert that extra bedroom into an office or another space that provides more utility.  However, there is a significant financial risk in such a conversion.  There is a good chance prospective home buyers will prefer an extra bedroom instead of something such as a study.  Though you might not be thinking about selling your home at the moment, that day will eventually come.  Think long and hard before converting your bedroom, run a cost-benefit analysis and consider how potential bidders will view such a conversion.

 

 

Upgrades for Kids Rarely Pay Off

The typical family with one or two kids is interested in adding a pool along with additional kid-oriented upgrades.  Though it would be fun to have a basketball court, ice rink, swimming pool or another recreational nicety in your backyard, this feature will chew up money every single year.  Furthermore, these features tend to be on the large side so they will occupy the majority of your backyard.  Selling your property will prove challenging if the majority of the backyard is dominated by a pool, a basketball court, etc.

 

Swimming pools are especially costly and time-consuming.  It costs a surprising amount of money to open, close and maintain a pool.  The liner can tear.  The pump might not function after a few years.  The water can turn green.  You might not even be able to use the pool for half the year due to the weather. Once you add up all the money you spend on the pool and consider the value of the time commitment necessary to maintain it, you will question whether you will get even a fraction of this money back when you sell the property.

 

 

A Chic Interior

Think twice before adding something on-trend to your home.  As an example, the shiplap trend has visual appeal at the moment yet it might not stand the test of time.  Additional examples of potential trendy interior features that might not age well include brass accents and open kitchen shelves.  So don’t be in a rush to renovate your home to make it more modern; the money might be better spent elsewhere to add value to your property.

 

 

Converting the Garage Into a Bedroom

Converting your garage into another bedroom seems like a cheap way to accommodate your growing family, a guest or possibly even a tenant.  The average buyer desires a garage when buying a home.  If your home does not have a garage, you will undoubtedly receive fewer offers when the time comes to sell.

 

 

An Abundance of Landscaping

Some homeowners spend thousands or even tens of thousands of dollars on landscaping and fancy exterior features.  A fountain, pond, waterfall or fancy flower bed would certainly look amazing yet it will be challenging to get any of the money you spend on these items back in the long run.  When in doubt, resist the temptation to spend lavishly on any type of home upgrade.  Perform your due diligence before committing a single penny to any home renovation.

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What are Rent-to-Own Deals and What Are the Benefits?

Since the financial crisis of 2008, rent-to-own models have become more common. This came after large real estate investment companies purchased foreclosed homes and implemented this new way of renting a property. A rent-to-own agreement is when tenants pay a portion of their rent towards accruing a down payment. This down payment will be used to purchase the home they’re currently renting.

 

With this model becoming more common, how do you know if it’s a good deal? What are the pros and cons of the rent-to-own deals you see today? Let’s take a closer look to determine what’s the best option for you.

 

 

 

 

What is the Rent-to-Own Process?

If you need a mortgage to purchase a home like most buyers, you’re probably struggling to get enough for a down payment. As the mortgage requirements get stricter, many prospective home buyers are looking for more ways to save money. Buying a home is becoming more of a challenge than ever.

 

Rent-to-own agreements offer an alternative way to save money for a home purchase. When you enter such an agreement, you do so with the intention to buy the house after the duration of the lease. The agreement usually specifies the purchase price, and you might pay an “option” fee, which means you have the option to purchase the home at the end of your agreement.

 

Your rent-to-own monthly payment might not be the same as a traditional rent payment. Usually, a portion of your rent payment is applied towards that eventual purchase price. So if you’re paying $1500 in rent and 25% of that is going towards the purchase price, after 2 years you’ll have earned $9000 towards purchasing the home.

 

 

 

What Are the Pros and Cons?

Renting-to-own is a great option for those looking to buy a house in the near future but who can’t afford it yet. It can be helpful to have a structured saving plan built into the home. However, it’s still a big decision and one you shouldn’t take lightly.

 

Rent-to-Own Pros:

• Bad credit – You can enter this agreement even with bad credit. This gives you a few years to work on your credit until you can afford a home loan.
• Purchase price – If you’re in a market with increasing home prices, it’s nice to lock in that price early while you save for your home.
• Experience the home – Because you get to live in the home, you’ll know if it’s the right place for you before you committ to buying.
• Equity – Finally, since a portion of your rent is put towards the value of the home, you’re able to build equity in the property.

Rent-to-Own Cons:

• Slow progress – Spending years taking the time to own a house might be too slow of a process for some people.
• Losing money – If you don’t purchase the home at the end of the agreement, you lose the extra money you paid each month.
• Maintenance – Depending on your agreement, you could be responsible for maintaining the property.
• Falling Prices – Finally, prices do fall. If the price of the home lowers, you might not be able to negotiate a lower purchase price.

 

As you can see, there’s a lot to consider before you enter a rent-to-own agreement. It’s best to treat this the same as you would purchasing a home outright. You’ll want to get the home inspected and do a title search to make sure it’s in good standing before you take on this contract. Ultimately, rent-to-own might be a great way to save for a home while you build your credit, but make sure you know what you’re getting into.

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How To Fireproof Your Home

Fire has been a huge topic the past year with all the devastation that has been caused in California. Other locations are also prone to wildfires that could put your home in danger. There’s no way to 100% guarantee the safety of your home but there is plenty of measures you can take to prepare for the worst. Check and see if there are things you are already doing or if there’s something you can add to your homes fortification.

 

 

Evaluate Your Yard

Grass. If your grass dries up in the winter make sure you keep it cut short to prevent adding any fuel to the fire. If you know there is a fire near be sure to water the lawn if you can.

Fire resistant plants. Sounds pretty cool right? Check it out and see if in your area you have some plants that have some fire resistant qualities. Some of these plants include Eastern Redbud, Live Oak, Sycamore, Yucca, Agave, Salvias, and Lavender.

Wipe out the weeds. These plants tend to be very flammable and if they have overgrown in your lawn then your house is vulnerable. Clear these out and besides, without the weeds, your lawn will look nicer.

Trees. See what trees are outside your home that could potentially catch fire and have a limb fall onto your house.

 

 

Evaluate Your Home

Roof. During a known fire find a way to get water onto your roof. Some fires are started just by a single spark and by having your roof moist this will prevent a spark from taking flame. Doing the same to your outer walls can also add to the protection. Also, consider tile or metal roofing to really up the protection of your home.

Doors. Doors have about 20minutes of fire protection. Take notice of what doors have a metal sheet inside of them. Those rooms will offer you the most amount of protection from a fire. If all your doors had this protection it could greatly slow down the rate of fire.

Paint. Find paint that has fire retardant qualities to it to further slow down the rate of fire.

 

 

Be Prepared

Flammables. Know where your flammables are such as propane tanks, lawn mower, and coal. When a fire is near your location start to move these objects to a safe space or even away from the home. If these come into contact with fire it can cause some serious damages.

Detectors. Check your detectors regularly to make sure they’re up to date and ready in case of an emergency. If you know there is a fire nearby then go ahead and run a test now.

Extinguisher. Make sure you know where the extinguisher is and that everyone else in the house does as well. Put it in a room that everyone can access and that is less prone to have a fire.

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How To Manage Your Property Taxes

There are a lot of things to love about owning your own home, but property taxes isn’t one of them. They’re one of the very necessary but also unpleasant aspects of owning a home. Property taxes, according to Investopedia, are real estate taxes that are calculated by the local government and paid for by the property owner.

 

This tax is based on the value of your land and property, and it’s used to fund law enforcement, fire services, and other improvement efforts in your area. Unfortunately, this means if your home is overvalued, you’re actually paying too much for property taxes. In this guide, we’ll break down how property tax is calculated so you can take a closer look at just how much you’re really paying.

 

 

How Are Property Taxes Calculated?

Property taxes are calculated based on your home value, a number that’s determined by your local tax office. Your house will be assessed every one to five years depending on local laws, and this is how your taxes are calculated.

 

In the calculation, the tax assessor determines the value of your home using a number of methods. One option is through the sales comparison, which means the assessor compares your property to those that have sold recently in your area. Another method is known as the cost method where the assessor calculates the total cost of creating your home from the ground up. Finally, if you own a commercial property, the tax assessor will likely use the income method which estimates how much income you’d receive if the property was rented.

 

So what’s the math behind this calculation? As you can see, tax assessors use a number of factors to decide how much you pay. Your property assessment is multiplied by your local tax rate, also known as the mill rate. One mill is equal to $1 for every $1000 of your property’s value. For instance, if your local mill rate is 40 and your property is assessed for $200,000, you’ll multiply 200,000 by .04 to arrive at $8000. This will be your property tax for the year.

 

 

Signs You’re Paying Too Much

A reported 30% to 60% of all taxable property is over-assessed. You might be paying too much. Your first step is to obtain a copy of your property record from your local tax assessors’ office. Online records are usually incomplete, so opt for a physical copy which might cost a small fee.

 

Next, you’ll want to do some math. Start by checking your square footage. Make sure this number matches the number on your report. If it doesn’t, you’re in a good place to appeal your case. This is one of the most common error when it comes to property taxes.

 

 

After you’ve measured square footage, count the number of rooms with running water. This is known as a running water count, so only rooms such as kitchens and bathrooms. These rooms are more expensive for tax purposes, so ensure your downstairs bar hasn’t been counted as a kitchen, for example.

 

Finally, take into consideration the condition of your house. The style of your home as well can play a large role. Colonial homes are usually valued higher, for instance. Check how your home is categorized to make sure it matches the real style. Finally, take a close look at the condition of your property. If there are things that would bring your property value down, document them.

 

Once you’ve gotten all of your paperwork together, make an appointment with your tax assessor to declare your case. As long as you’ve done your research and have clear documentation, you’ have a good chance of getting your property tax reduced.

 

Nobody wants to pay more taxes than they need to. If you’ve suspected you’re overpaying for your property taxes, take action. You don’t have to accept your home assessment on the first glance. Follow these tips above to second-check these numbers to make sure you’re not parting with your money for no reason.

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source https://nationalcashoffer.com/how-to-manage-your-property-taxes/

What To Know About Taxes As A Homeowner

Home ownership carries latent costs in the form of taxes and ongoing maintenance.  However, there are also some tax breaks available to those who own a home.  There is a common misconception that it is more financially prudent to rent, especially for transient millennials, as renters are not subjected to property taxes.  The truth is landlords adjust the price of rent in accordance with property taxes.  So do not assume paying several thousand dollars per year in property taxes is reason enough to continue renting.  You will pay for property taxes through monthly rent or your mortgage payment regardless of whether you decide to buy your own home or continue renting.

 

 

Mortgage Interest

The mortgage interest deduction is one of the primary benefits of owning a home.  Tally up the mortgage interest you pay throughout the year and deduct it from your taxes.  Mortgage service agents are supposed to provide clients with a 1098 tax form by the last day of January.  This form serves as the guide for deducting your annual mortgage interest.  In some cases, it is even possible to deduct interest on refinanced mortgages depending on the issue date and debt limitations.

 

 

What to Know About Local and State Property Taxes

Plan on spending at least a couple thousand dollars or even $10,000 or more in local and state property taxes.  The county and state you reside in determines your property tax rate.  These funds are used to pay for the local school system and government services such as the fire department, police, snow plowing, etc.  Starting last year (2018), the property tax deduction for combined local and state income was capped at the $10,000 threshold.  Most homeowners were unaffected by this change as the majority of homeowners pay annual property taxes below this limit.

 

 

Property Tax Exemptions

There are certain situations in which homeowners are tax exempt from property taxes.  The nuances of property taxes and exemptions differ by town and state.  Be sure to check with the local tax assessor to determine if you are eligible for a property tax exemption.  As an example, some military veterans qualify for tax exemptions.  Exemptions might also be available for those who renovate or build a home for an elderly parent or grandparent.  Some jurisdictions have homestead exemptions that decrease homeowner property taxes.

 

 

Worried About Property Taxes?  Get an Estimate Before Buying

Do not put in an offer on a home unless you are sure how much you will have to pay in terms of property taxes.  You can find out your annual property tax bill by using a property tax calculator.  As noted above, the best way to get an accurate prediction of your yearly property tax bill is to reach out to the local tax assessor’s office.  Once you have your estimated property tax bill in-hand, you will be able to budget accordingly and cap your bid at a certain number.

 

 

A Quick Note About Itemizing Tax Deductions

There are plenty of tax deductions available for home owners to take advantage of during the tax filing season yet it might not be prudent to take any of them.  The tax rules changed in 2018.  The standard deduction has spiked to $12,000 for those who file as single.  Joint filers’ standard deduction is now $24,000.  As a result, a married couple that files taxes jointly will need more than $24,000 worth of itemized deductions related to owning a home in order to justify making the deductions in the first place.  It might make more sense to eliminate the itemized mortgage interest and property tax deductions in favor of the standard deduction.

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