Celebrity Homes – Engagements That Should Not Be Emulated

The entertainment industry influences many opinions and beliefs of average individuals because of what they see in television shows and movies today. People get too attached to the extent that even the lives behind the spotlight of these famous personalities are followed by viewers. Although there are lots of ideas and morals that can be acquired from them, there are also fallacies that people should be aware of especially about the assets of many celebrities. The lessons and advices that they share can be unrealistic for most masses.

There are many misconceptions that people tend to follow because celebrities do or say them. Advices about celebrity homes are of the most common stimulating topics. Here are the usual engagements on celebrity homes that we should not emulate.

Spending too much. One of the Real Housewives of New Jersey casts has faced bankruptcy sometime in 2009. The celebrity was known to be one of the top luxury spenders in the business. Overspending was suspected by the auction listing to have caused the bankruptcy. It seems that this habit is not only true for celebrities but for many families too. The consequence is they end up paying for increasing debts. In the long run, even paying for monthly mortgages becomes a struggle. The moral here is to spend on things that are necessary. Weigh the consequences of having the luxuries that can satisfy your cravings and the necessities that can provide the sustenance of your daily existence. Would you be willing to sacrifice your own shelter?

Relying on the bank. Thinking that the bank will grant a loan modification or short sale for them, many real estate owners intentionally stop paying their mortgages. This strategy works for some banks but not for all. The truth is, delaying your monthly dues would only cause your payment to be even more difficult to handle in the succeeding months. You don’t want to end up losing your property with a mere hunger for loan mod, do you?

Disregarding your own finances. Many celebrities end up being broke because of missing out on dues that need to be settled. Unawareness is not an acceptable reason for most companies. Even if you have the capability to pay for the necessary fees, you could still be evicted from your own home. Check your incoming and outgoing accounts to make sure that everything is at the right track.

Buying and selling to earn instantly. Common among celebrity homes, owners buy new homes at a bargained price and sell them at a higher value. However, with the real deal in the market, it is difficult to sell these celebrity homes without having to cut prices. This is what happened to a famous singer who made a good deal at the start but unfortunately made it to the losing end. He listed his home at $22.5 million in 2007 yet it’s still available in the market at $18.5 million. He originally paid for more than $16 million for this house excluding the mortgage that cost him $100 thousand per month.

Evading Taxes. A sought-after Hollywood actor experienced losing three of his homes to foreclosure due to an issue of tax evasion and other allegations of fraud. This doesn’t necessarily mean that they cannot meet the expense of paying for the millions of dollars’ worth of taxes. Celebrities and a majority of taxpayers aren’t able to pay taxes because they fail to file their returns annually which eventually results to multiple problems on their finances. To avoid this, one must be a responsible citizen and pay his correct taxes.

Celebrity homes serve as examples for most of us because they have the most accessible information to the public. The discretion on what to emulate or not would always lie in the homeowners’ decisions. In the end, what matters is that they do not end up regretting the consequences of their actions just because of following what the existing trend recommends.