I am playing as House Targaryen and have Magister Illyrio in play

"You may play attachments from opponents discard piles as if they were in your hand"

Do i still need to play an out of house gold penalty if the attachment is not Targaryen/ Neutral ?

Thanks

Yes you do. Pretend those attachments are in your hand for all intents and purposes.

Text says "as if they were in your hand" - if you want to play an out of house card from your hand and you do not have anything to say otherwise (i.e. agenda or plot card) then you have to pay the out of house gold penalty

When something is "as if they were in your hand" then operations behave exactly the same as if the card was in your hand