Most Expensive Homes Purchased by New York Lottery Winners
It's no secret that winning the lottery can change your life for the better. In addition to becoming a millionaire overnight, lottery winners often get to enjoy other perks, such as luxury cars and extravagant homes. A recent study by real estate company Redfin found that in seven out of ten cases, lottery winners purchased more expensive homes than they lived in before they won their jackpot. After checking the New York lottery results and games and finding out they’ve won, it’s just one of the many reasons people choose to take homeownership into their own hands.
Jim Hayes, a former Wells Fargo bank manager from suburban New York, won a $2.5 million lottery in 2002. He purchased a 5-acre horse farm in upstate New York for $1.3 million with his winnings. In addition to the house and barns on the property, Hayes also renovated an old schoolhouse to serve as a guest home with two bedrooms, a full kitchen, and a living room. Hayes said that he has always been interested in converting old buildings into houses, and that was why he chose to purchase this particular farm.
Hayes is not the only lottery winner from the New York area who decided to buy an expensive home. In 2014, a retired New York sanitation worker won a $180 million jackpot. Instead of moving into a new home or traveling the world, the lottery winner purchased his former house in Southold for $910,000. In addition to adding modern updates such as new floors and appliances, the man also erected a gazebo on the property and planted a large garden.
The winner of the largest jackpot in New York state history bought his winning ticket on Christmas Eve and chose to remain anonymous when he won $319 million from Mega Millions in 2013. Although there were multiple rumors about what the man planned on doing with his winnings, one can only imagine that part of those plans involved purchasing a new home. Whatever his plans were, he chose to buy a luxury condo in White Plains for $1.7 million just a few months after winning the jackpot.
Why do so many people choose to buy a home after winning the lottery?
According to Redfin, over three-quarters of lottery winners purchased homes more expensive than those living before winning their prize. This statistic is excellent news for real estate agents across the country! Half of the lottery winners surveyed in the Redfin report said that buying a home with their winnings was "extremely or very important." Of these, 87% said buying a house was more important than spending their winnings on other things.
Why would someone choose to buy a new home instead of engaging in other luxuries with their winnings?
The answer comes down to two key factors: the desire to own a home and the ability to buy one. Many lottery winners do not successfully manage their money, but that doesn't mean they won't purchase a new home if they so choose. Whether the goal is to move up in suburbia or live out an American dream of owning a horse farm, buying a new home is becoming more accessible and more affordable than ever before.
To avoid making the same mistakes as other lottery winners, planning how to spend their money before hitting the jackpot is essential. While many lottery winners spend their winnings on homes, others choose to splash out on luxury cars or designer clothing. According to the National Endowment for Financial Education (NEFE), about 70% of Americans who receive a windfall of $100,000 or less end up broke within five years.
Once the desire to own a home is established, it's time to find some new digs! Redfin also found that lottery winners choose more expensive homes than they already live in most cases. Whether you want to move up in your suburb or purchase your dream property on some open land, being able to go shopping for that perfect house with money to spare is an exciting time for any lottery winner.
It's no wonder that so many lottery winners choose to purchase a new home with their winnings!
The combination of the desire to own property and afford it is a dream come true for many people. With real estate prices rising, now is an excellent time for anyone lucky enough to win the lottery to go shopping for their perfect home. Keep an eye out for new luxury listings in your area – you may be surprised at what you find!