Billion-dollar couple Beyoncé and Jay-Z just bought a home in Los Angeles, and took out a mortgage of $52.8 million from Goldman Sachs to do so.
The couple put in a down payment of 40% for this $88 million mansion, the sixth most expensive home purchase in the city’s history, according to an article by Tanza Loudenback for Business Insider.
The home is 30,000 square feet and sits on a two-acre hillside estate in Bel Air. It contains four outdoor pools, a spa and wellness center, a full-sized basketball court and a 15-car garage. Check out the picture below of the outside of the mansion.
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(Source: LA Times)
Beyoncé and Jay-Z hold the Forbes title of the highest paid celebrity couple in the world, and hold a combined fortune of $1.16 billion, yet they didn’t pay cash for the new home, the Business Insider article pointed out. The monthly payment on their loan totals $149,600 – that’s higher than the median home price in some cities.
From the article:
Keeping their mounds of cash liquid could be a smart business decision. For starters, it helps to maintain their lavish lifestyle. But it could also allow them to continue investing heavily in tech companies, presumably earning returns greater than the amount of interest they’ll pay, considering mortgage rates are still historically low in the US.
“Depending on how their portfolio looks — what they’ve invested in — I think there could be a huge benefit [to Beyoncé and Jay-Z]. It gives them flexibility, and they could pay the mortgage off anytime,” Robert Cohan, a managing director at Carlyle Financial in Los Angeles, told Business Insider.
HW Housing Wire