It sounds just like the start of a great movie: Penny Adams, of Eden, NC, won a $1.69 million jackpot earlier this month after placing a mere fifty-cent bet, according to an NC Education Lottery press release.
After required federal and state tax withholdings, she was awarded a whopping $1,218,323.
When interviewed, the newly minted lottery winner shared she had big plans for her winnings: buying a new home.
And what a home she’ll be able to realistically afford in North Carolina—even after you factor in a mortgage, property taxes, and insurance.
Home-buying power in North Carolina
Even when you have over a million dollars at hand, it’s important to consider all the financial aspects of buying AND owning a home before laying down roots. While it might sound exciting to buy a mansion, the reality is some of Penny’s winnings really should be saved for other housing costs down the line.
“With $1.2 million in hand, she can buy a home in the $800,000 to $1 million range, but only if she keeps at least $300,000 liquid for taxes, insurance, maintenance, and emergencies,” Chad D. Cummings, attorney and CPA at Cummings & Cummings Law, says.
And yet, if Adams spends more than 75 percent of her net winnings on the house, Cummings warns, “she would be house-rich and cash-poor… one job loss, lawsuit, or storm away from financial instability.”
Cummings has unfortunately seen that type of situation firsthand.
“We recently worked with a client in Texas who had a financial windfall, did not want to take advice from professionals, and lost it all over a period of about nine months,” says Cummings. “She’s back working in the same minimum wage job as before the windfall.”
That’s why it’s so important for Adams to plan her next steps carefully.
North Carolina housing prices
North Carolina earned a “B+” on Realtor.com’s home ownership and affordability report card, boosted by a growing supply of homes and steady new construction.
In 2024, the average starter home price In Adams’ home state of North Carolina was $314,880.
But while home prices may look competitive, Cummings says that the state is not always a “financial safe haven.”
“Yes, property taxes are low at about one percent per year, but that savings is erased by rising homeowners insurance costs, especially after the June 2025 statewide rate hike,” he explained.
Cummings warns that buying in hurricane-prone or flood-prone areas may also trigger lender-required wind or flood coverage with five-figure annual premiums, something the buyers really need to keep in mind.
Cash or mortgage—what’s the better move?
Pay cash or finance? That’s the big question facing a lot of potential buyers right now. In Adams’ case, since she has the money, Cummings believes she’s better off paying for a home outright.
“Paying cash for the house is still safer than gambling on a mortgage deduction that may never materialize,” says Cummings. “Remember, the tax law, including mortgage deductions, can always be reduced or repealed in the future.”
Cummings adds that right now, interest rates are too high to justify the debt.
“On a $1 million loan at seven percent, she would spend about $70,000 per year in interest,” he says. “The mortgage deduction only helps if she itemizes and has significant other deductions, which is still not offset by the risk. Paying cash simplifies her life.”
Housing choices in Eden, NC
When Adams is ready to purchase her dream house, here winnings will take her far. Here are some viable options just in her hometown:
List price: $999,999
This 3,913-square-foot home has three bedrooms and 3.5 bathrooms, and is nestled on 9.82 private acres.
List price: $329,000
Situated on a quiet cul-de-sac with mature landscaping, this four-bedroom, 2.5-bathroom house is 1,996 square feet.
List price: $118,000
This charming cottage has three bedrooms and one bathroom, and is 1,269 square feet.
List price: $377,000
With four bedrooms and three bathrooms, this 3,282-square-foot mid-century modern home sits on a 1.98-acre lot.
Listing price: $449,900
This three-bedroom, three-bathroom home has 3,279 square feet, and was built in 1904.
