The Powerball has hit $25 million, which means ticket holders for Saturday's draw will be dreaming big. The list of what a sole winning ticket could buy will balloon from new car and nice-looking house to items only the rich and famous can afford.
But a word of advice for those who believe a $25 million win is their ticket to a luxury mansion with heli-pad, infinity pools and ocean views: $25 million may not be enough.
Real estate agent Michael Boulgaris, who sells luxury homes around New Zealand, says buyers at the top end of the market need to have deep pockets and a six-figure income to maintain a mansion.
A $20 million house requires looking after, he says, which means Lotto winners would need to have cash left over to pay for high electricity bills, cleaning and pool maintenance and insurance.
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"It's like running a big ship. You would soon run out of money,” he says of buying a luxury home.
Would you spend it all on an opulent house?
Boulgaris, who has several homes on the market that would eat up Lotto winnings, says the smart thing would be to buy instead apartment units, lifestyle blocks or commercial buildings, which would grow in value and offer a good income stream.
But not everyone agrees with Boulgaris.
Ollie Wall, of Graham Wall real estate agency, said if he won Lotto this weekend, he would buy the prestige four bed house on Paritai Drive - Auckland's most expensive street for real estate - which he is currently marketing.
12 Aldred Road, in Remuera, Auckland is for sale by price by negotiation.
"It’s the most grand and expensive house at the moment and if you win $25m you would have $5m for your toys - a boat and a jet ski," he says.
Investing in waterfront property is a smart move because they are in demand, he says.
“I think the best thing you can do is make sure your family is comfortable. Put the winnings into a waterfront property and sit happily by the pool knowing you are making money and getting richer as the value for these types of homes only increases over time,” he says.
52 Paritai Drive, Orakei, Auckland is being sold by Graham Wall Real Estate.
Bayleys agent Gary Wallace, who sells homes in Auckland's prestige suburbs, recommends winners to get advice from a financial adviser before making a big purchase, but says "over time property has proved to be the best investment of all times".
Whether its a $20 million home or $2 million home, it would still provide a return, he says.
"I think it depends on the person but any residential property in Auckland {is worth buying] as the city has all the infrastructure, growth and population."
Wallace says if he won the $25 million jackpot, he would not tell anyone and help his children get established in the market by buying either a commercial or residential property.
OneRoof editor Owen Vaughan agrees that property has proven to be a sound investment for many Kiwis. "The recent listing of 6-bed mansion 12 Aldred Rd, in Remuera, illustrates how even expensive purchases can yield results in the long term. The house was bought by its owner 18 years for $2.5 million and now has a CV of $15.1 million - and could possibly sell for much higher."
Harcourts Queenstown agent Kirsty Sinclair says she would love to assist any winner pick out their next home.
"If they come to Queenstown with a $20m cheque, we can get them something amazing," she says.
Gems can be found on the way to Glenorchy in Closeburn, as well as Dalefield, between Arrowtown and Queenstown, and Jack's Point waterfront.
However, Sinclair says when investing you have to be sensible and splashing out on one big property may not be the best idea. "You are better off getting one or two standard investment properties and then, to live in, something that your heart desires."
But what if you keep your winnings in the bank?
Westpac senior economist Satish Ranchhod says if you put $20 million in the bank on a term deposit, you’d currently come away with around $540,000 in interest earnings (before tax) per annum.
"If you saved half and spent half of the after tax return, you’d still see your savings growing by close to $2 million over the next ten years, depending on interest rates. If you saved more/spent less, the resulting interest earnings would be larger," he says.
"We expect interest rates will remain low for the next few years. But historically, savings rates have been higher than they are now."
Three luxury homes you could buy with the jackpot
This lodge-style five bedroom home sit on 6.6ha of Queenstown land with expensive views over Lake Wakatipu. It includes a heli-pad, outdoor fire, grass amphitheatre suitable for family games of soccer or cricket and a spa pool with the stunning alpine scenery.
Check out the listing below:
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This four-bedroom waterfront home in Auckland's Westmere comes with a 17m infinity pool, elegant interiors, an indoor cinema, music room, bar, library and a power house laundry room.
Check out the listing below:
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This cliff-top estate can be yours for $14,750,000. It's designed by Hillary Priest Architects and is set in the Mahurangi Peninsula.
Check out the listing below:
