An overnight billionaire’s 'terrible' buys: $75 million houses, vintage Porsche

A picture of Edwin Castro's $4 million home in Altadena (Image credit: Zillow)

Edwin Castro, winner of the record-breaking $2 billion Powerball jackpot, has raised eyebrows after splashing out on a string of luxury purchases that experts have criticised as bad decisions on his part.

Castro became an overnight billionaire last year after winning $2 billion in the California lottery. The 31-year-old came forward to claim his prize in February this year, choosing the lump sum payment option. With this, he received nearly $1 billion in his account – or about $628 million after taxes.

Castro’s other option would have been to collect the full payout of $2 billion through an annuity over 29 years. Many financial strategists, according to Fortune, consider this to be the better option as it provides long-term financial stability with regular payments.

But experts say this hasn’t been the least of Castro’s mistakes – he has also invested heavily in California real estate, spending over $75 million on three properties.

In March, Castro bought a $25.5 million estate in Hollywood Hills. This was followed by a $4 million mansion in Altadena, his hometown. Castro’s most recent purchase is also his most expensive – he shelled out $47 million for a seven-bedroom mansion in Bel Air, sold by celebrity realtor Mauricio Umansky, according to the Daily Mail.

The $47 million estate comes with an infinity pool, 11 bathrooms, seven bedrooms, a koi pond, a champagne tasting room, DJ turntables and a glass-walled wine cellar, among other things.

Castro’s other properties are no less luxurious – the $4 million mansion, for example, features a home theatre and expensive artwork. Meanwhile, his $25 million hillside estate comes with an infinity pool, wine cellar, gym and more. Castro has also been photographed in a vintage Porsche 911.

However, financial experts say that splurging on expensive homes and luxury cars so soon after coming into money may not be the wisest thing to do. In fact, some have even criticised Castro’s buys as ‘terrible.’

“Don’t make any visible life changes. Don’t quit your job, don’t go out and buy a Ferrari, don’t buy a mansion,” Emily Irwin, managing director of advice and planning at Wells Fargo’s investing and wealth management division, told Fortune.

“Maybe you have student loans you want to pay off, that makes sense. But try to avoid that mega-purchase.”

Instead, most experts recommend meeting with a financial planner, tax lawyer and other service providers to draw out a strategy for long-term benefit.