Beyonce & Jay-Z have a $52.8 million mortgage on their $88 million LA home

Excited parents Beyonce and Jay Z get distracted by their unborn twins at the LA Clippers game

I enjoy reading and writing celebrity real estate stories, but I get that most people don’t give a crap about them. Like, I love it when celebrities show off their homes in Elle Decor or Architectural Digest or one of those magazines. I love to creep on celebrities’ tastes in architecture and design. We probably won’t ever see the inside of Beyonce and Jay-Z’s many properties, but this year, we have been gifted with increasingly hysterical reporting on the new house they just bought in California. And when I say “house,” I mean… it’s like a proper estate. It’s basically the size of a small village. Bey and Jay were househunting for months before they finally settled on an $88 million Los Angeles estate, and now the LA Times reports that Bey and Jay put more than $30 million down, and took out a mortgage for $52.8 million.

Jay-Z and Beyoncé may be worth more than a billion dollars combined, but the couple ultimately used conventional financing in order to purchase their first Los Angeles-area home. The rapper/hip-hop magnate and his superstar wife, through blind trusts, paid $88 million for the sprawling contemporary estate, public records now show. Also revealed in the records is that the couple is carrying a mortgage amount of $52.8 million.

Plug that into any mortgage rate calculator (we happened to used Google’s search-based calculator) and that amounts to 30 years of monthly payments at $252,075 based on an interest rate of 4%. To put that into perspective, that’s roughly 40% of the July median sales price — $610,000 — for single-family homes in Los Angeles County, according to CoreLogic. It’s also about $50,000 more than the U.S. median home value of $200,400, according to Zillow.

So what does a $250,000-a-month mortgage buy in L.A.? For Jay-Z and Beyoncé, its a monolithic-vibe modern mansion with approximately 30,000 square feet of living space, four outdoor swimming pools and a spa and wellness center. Developed by Dean McKillen, the son of Irish billionaire and property investor Paddy McKillen, the residence sits behind gates on about two acres and comprises six structures. Amenities include spa and wellness facilities, a media room and separate staff quarter. There’s also a full-sized basketball court.

McKillen bought the property through a corporate entity four years ago for $15 million, records show. The developed property was completed this year. The off-market transaction is now the highest sale of 2017 in Los Angeles County, besting the $85-million deal for David Geffen’s Malibu compound that recorded in May. Historically, it’s L.A.’s fifth-largest sale of a single-family home, trailing last year’s two $100-million deals, the $90-million sale of Owlwood and Fleur de Lys, which traded three years ago for $88.3 million.

[From LA Times]

The idea of a $52.8 million mortgage hanging over my head makes me itchy, but let’s be real – Bey and Jay have the money. They have the money to pay for the home flat-out, but they probably took out a mortgage because A) tax reasons and B) maybe they aren’t liquid enough to put down anything more than $35 million. As for whether they NEED that kind of space… God knows. They now have three growing children, a full phalanx of staff and it’s clear that they’re going to be LA-based for a while. Why not?

Bey posted this Instagram last night. Do you think the song choice is significant? “Don’t have to be rich to be my girl…” But it certainly helps.

A post shared by Beyoncé (@beyonce) on

Photos courtesy of Backgrid & Instagram.

 

You can follow any responses to this entry through the RSS 2.0 feed.

89 Responses to “Beyonce & Jay-Z have a $52.8 million mortgage on their $88 million LA home”

Comments are Closed

We close comments on older posts to fight comment spam.

  1. Alix says:

    Who needs four swimming pools?

  2. Nicole says:

    I’m glad she gave her scalp a rest and took her weave out. I am truly happy for their success.

  3. kdlaf says:

    I dont understand their realestate choices (the size of their homes are insane) but I’m sure this is a strategic move for them somehow. I feel like I hear about them buying a new home every 6 months though…

  4. Skylark says:

    I find their conspicuous consumption really vulgar but hey, their money, theirs to do what they want with it.

  5. Beth says:

    What’s the point of having a house that size? 4 pools? With California going through this dangerous drought for years, I thought water wasn’t supposed to be wasted. Maybe each kid will get their own pool and wing of the house

    • I just had a vision of Blue Ivy in about 12 years saying to her siblings, “No! My friends and I are using the East Wing pool today. You and your friends have to use the South or the North Wing pool, because Mom and Dad are hosting an album release pool party in the West Wing pool.”

    • ORIGINAL T.C. says:

      I think it’s ridiculous personally and environmental irresponsible but at least California is no longer in a drought. California had record rainfalls and flooding this year. I believe there were flooding victims in L.A. and another town had to be evacuated for fear of a Dam that was overfilled and had a leak or something. It is crazy climate change taking over our planet :(

    • Geekychick says:

      honestly, although I always was thinking along the line: “if you have enough, spend it however you want, girl!”
      I just never got around to understanding that thing with celebrities and rich people and huge mansions:
      As a person who was growing up in 30square meters(2 sisters) , who lives with my 3-person family (+a cat and a dog) and plans to have one last one more child in same space….I just don’t get it. I get 130 sq. m. for a family of 5…ideal. But, like, in 300sq. m. that same family wouldn’t feel like…normal family. I mean, how often do people in mansions can go avoiding each other? When you have a teenager, how do you find him/her to drag him/her down to dinner? etc, etc…
      but even if your staff is huge and your family growing…this is just to much. you don’t need a small village to house all around you. IF you seriously need a small village for your entourage…look at your life, look at your choices.

  6. Bridget says:

    They are going to end up paying so much in interest alone, how can that be worth the tax break?

  7. Joannie says:

    These two are beginning to look like cartoon characters.

  8. Jamieee says:

    That’s a crazy amount of money for them. There are people 20 times wealthier in the same area that spend less (and on much more substantial land holdings).

    Together they’re worth a bit over a billion dollars. I know that’s a lot, but for the kind of lifestyle they’re living, it’s really not enough. They spend like people who could quickly get their hands on that much in liquid, not like people who are only really worth that on paper right now.

    • kibbles says:

      I agree. There are people in business and tech worth more than these two, but are not vulgar enough to spend this much money on real estate, cars, private planes, staff, etc. It’s vulgar in the same way Donald Trump is vulgar by having an apartment made of gold. $88 million on a property is an insane amount of money, even for the top .01%. These two are ridiculous. I would love to hear the day that they file for bankruptcy, but they have such crazy fans that they will likely have millions coming each year even after death.

  9. Miss S says:

    I love stories about real estate in general, I’m a bit of a real estate stalker to be honest!
    One thing that seems obvious to me is that the most expensive properties are usually tacky as hell. The exceptions are found on old historical properties that were not renovated in a way that erases what made them distinct. Also, in order to justify really high prices (we see this a lot in big cities like NY and London) developers/investors will simply add expensive finishes and high tech, which rarely guarantees interesting results, it just tells “EXPENSIVE”. When the price reflects the size and exclusivity of the land, whatever is built on is usually worthy of being razed down because the value isn’t the construction, just the land (Hamptons and surrounding areas are a good example of this).

  10. Zondie says:

    I guess we are back to “greed is good.”

  11. Char says:

    I get the impression Kim K. already wore this dress in black. Odd choice for Bey.

  12. Doc says:

    I also love AD’s spreads on celebrity homes and I love when I catch a glimpse of them in Vogue’s 73 q’s (I love Reese Witherspoon’s house), but I’ve always wondered, how does one live in so much space, like the areas described for the ‘estate’ of these two? I’d love to have an extra room and bath for guests and a pool would be nice. I think I’d stop at a tennis court in the yard. But more than one pool? Who has got time for that? I guess it’s a completely different lifestyle and daily routine, but still…

    • Miss S says:

      I love those Vogue videos too! One thing that isn’t usually talked about when discussing real estate is the psychology of it, or in other others, what motivates people to make certain real estate choices when they don’t live with the limits most of us do. I suppose that we all have ideas about what would be our “dream home”, but often it’s just us projecting and idealizing how it would be like to live in that context ignoring the downsides. For example, most people love the idea of living in a brownstone and when others point out how difficult it is to maintain such a house they say that they would get people to deal with it. But they don’t question if they would actually feel comfortable living in a place they couldn’t manage by themselves or how challenging living of a multi level place is (sense of being isolated). My point is that people with lots of money don’t “need” to ask any of these questions, they can be impulsive without any serious repercussions. Other point is how we tend to compare ourselves with others “at our level” and if they really buy into that then, someone like Beyoncé and Jay Z will feel like they must buy at a certain price point, because that’s what they are expected to. We see this a lot with sports people who suddenly make lots of money and follow the consumption clichés about being rich,

      • Doc says:

        Yes, so well put Miss S. I could have never explained it the way you did. But that ‘what’s expected’ of someone is how I’m tryong not to live my life and do my own thing. I guess with an increase in earnings, the expectations also multiply. I have to say and I know it’s judgemental, but I find that kind of opulence disgusting. I hope they do some goid in the world in places where money does help solve things considerably.

    • Marion C says:

      I love the 73 Q’s series for the same reason. Really liked SJP’s brownstone and agree on RW’s house.

    • tty says:

      It’s all about status for these two. They’ll probably actually live in 1/10 of the house, and the rest will sit empty.

    • hogtowngooner says:

      If you haven’t yet, check out the website Hooked On Houses. It shows mag spreads, celebrity homes and houses from movies/TV. It’s very easy to spend a few hours there with all the house pr0n :)

  13. Aang says:

    Disgusting. And I mean everyone who lives like this, not just this thirsty pair. This kind of wealth disparity won’t last. It may not be in my lifetime but the guillotines will be sharpened again at some point.

    • Nebby says:

      You’re an odd person. It may not be your taste but they both put out a product, people bought it, and they’re allowed to spend it how the see fit. Wealth disparity is an issue but fetching the guillotine is just disgusting and barbaric. Do better.

      • aang says:

        I’m not calling for it. But I am predicting it. Things can not continue as they are. History backs up this idea.

      • Summer says:

        From a capitalist perspective, you’re correct. This isn’t inherited money; they didn’t scam anyone — they used their talents and worked hard to build an empire.

        That said, I find it off-putting when wealthy people say, “I worked hard for this.” Like, really? Did you work harder than a field worker? Did you work harder than a factory manager? Harder than a world leader? A schoolteacher? I don’t eschew them their success or think haven’t worked their butts off, but by no means did they work 5,000x harder than the average employee.

        Also, homes like this have zero appeal to me. I just don’t see functional and healthy lives/childhoods/marriages taking place in homes this size and price. Money can buy some happiness (freedom from money stress, medical care, etc), but too much money is a curse. People are happiest when their basic needs are met, not when their every wish is granted.

      • Geekychick says:

        Bravo Summer, I agree with every word!

      • oh dear says:

        @summer
        im not even a fan but even i can see how hard it must be to be a successful artist for as long as this woman has been. i also think shes worked really hard for it all, starting rather young. there is so much competition, you always have to be on top of things. you travel all the time, there is little time for yourself and to recuperate. you have to think of your brand whatever you do, youre always under a microscope etc. i would hate all this pressure. a pressure shes been under for how long?

        maybe in your eyes she hasnt worked hard, but she has earned her money fair and square and if her job was that easy surely anyone could do it.. i also dont think that its a competition of who works harder in life. because people usually do the jobs that theyre able to do or have access to.

        i also find it curious why you would interpret “i worked hard for this” as if she said “i work harder than other people” because i dont read that in that sentence. this is usually an interpretation of a jealous person who is unable to better their own circumstances, whereas “i worked hard for this” sounds more like an apology for having earned money and being able to spend it without much though. im pretty sure beyonce never imagined spending this much money on a house when she was younger and not that wealthy but things change. its her choice.

        i wouldnt judge her on her success. she has prevailed in a high pressure industry, she has earned every penny. surely she should be able to spend that money as she seems fit, just like nobody tells you which car or clothes to buy based on your earnings :)

      • magnoliarose says:

        Sprawling huge houses are hard to make cozy and comfortable. I met a woman once who blamed the breakdown of her family on their house. It was so big it was easy to go their own ways and not interact enough. They became strangers.
        There is a point when it becomes ostentatious and seems like a check off list of features to outdo other wealthy people and to impress. I don’t like their taste in much anyway.

  14. lucy2 says:

    I just looked up photos, it’s huge and not my style but interesting.
    A mortgage that big seems insane, but it may be a good move for them, if liquidity is an issue. I bet they got the best rate out there, and maybe it’s only a 10 year or so, so the interest won’t be too high.

  15. Talie says:

    I don’t think they are as wealthy as you imagine…they were outbid on a lot of the houses they wanted in LA, even by Tom Ford! I don’t get why they needed a $100 million dollar house, but it’s their cash…

  16. lower case lois says:

    A standard rule for mortgage lenders is that your monthly housing should not take up more than 28% of your income before taxes ,so a 52 million dollar mortgage is mind blowing to me. Also you would have to find a bank or mortgage company to give you that.

  17. Eleonor says:

    I saw the photo and I thought Kim K. has a similar dress only black.

  18. @BitingPanda says:

    Hmmm…Guess those “pregnancy lips” are tough to lose.

  19. Ninks says:

    I was probably one of the very few people who gave Beyonce the benefit of the doubt over her first ‘pregnancy’, now seeing her post-actual-pregnancy boobies….

    • Geekychick says:

      a lot of women react differently in their pregnancy: for instance, a number of women show sooner, a lot of them find their ideal post-partum weight slower or harder, some have no complications the second time, with some second pregnancy brings a set of health problems they never had during first one. I imagine it’s even more extreme with twins, at least for some women.

  20. Enough Already says:

    But when Taylor Swift snaps up expensive real estate she’s a savvy businesswoman and investor? Holy double standard Batman!

    • swak says:

      For me, they’re all ridiculous with these purchases (not just Jay and Bey). But again, they don’t take care of them, they have help for cleaning, cooking, laundry, etc.

    • HadToChangeMyName says:

      Actually, no. People here and everywhere criticize Taylor for her stalker purchases, as she usually buys next door to the guy she’s currently infatuated with.

    • Jamieee says:

      Taylor has spent less on her entire real estate holdings than Bey and Jay have spent on this one estate. A lot of her purchases have been under 5 million, and her three more expensive properties were still under 20 million each. She paid cash for those (and probably for the cheaper properties too but I can’t find that info right now).

      She has been savvy. Her main properties are large and need maintaining, but not the kind of maintenance this type of property needs. She could get by with a skeleton staff if she had to, without the properties going to hell. She could also sell them easily, and given their locations, very likely at a profit. They’re expensive, but not so expensive the only potential buyers have to be billionaires. Whereas this kind of property, especially in LA, sits around for years and years when it’s put back on the market because there’s so few people who could even consider it. If Bey and Jay decided they don’t want it after a few years, they’d have to take a big loss or spend years paying the mortgage and maintenance while waiting for that perfect unicorn of a buyer. The ultra modern style also makes it a risk, because there’s always something better and flashier being built for a similar price in this area.

      Taylor’s properties work as obvious investments. This property is a different proposition. If they got lucky it could be a good investment, but it could also be an absolute nightmare.

  21. GD says:

    Isn’t that red dress the same that Kim had, only in black?

  22. megan says:

    I’ve never understood how celebrities, who support liberal ideas, policies, and politicians, can justify living in such huge houses. How are they environmentally friendly? What kind of “footprint” are you leaving on the world? It just seems so hypocritical to me.

    I understand they have a lot of money, but why not use it for other purposes than gross displays of wealth?

  23. Nacho_friend says:

    I knew those lips were fake….if they don’t disappear after a year then I was right.

  24. The New Classic says:

    Maybe I’m just a weird millennial, but a house that size sounds terrible? Like, my ideal idea of a house right now is a tiny house where I can be mobile and living for experiences, not stuff. The idea of owning so many possessions and such a large house and having to be responsible for it all sounds absolutely exhausting. 😖

  25. Jessica says:

    Most celebrities have mortgages, Jay and Bey are no different. I think it would be crazy to drop 90 million in cash on a house especially since they have to furnish it and pay for other things. A mortgage is fine and they will probably pay it off quicker than 30 years or sell it and make a profit later down the road.

  26. anon1 says:

    this is why the government needs to have an upper limit on interest deductions for houses. if you are buying such an expensive house, you don’t need the darned deductions.

  27. *sigh*

    Must be nice.

    Us peasants have to work hard so we can hopefully afford a house of their own someday.

  28. Madpoe says:

    idk had this been a lottery winner they’d be broke in an hour.
    I couldn’t even imagine the electric bill or water bill.
    You need Jay-Z/Beyonce money to live like this.

  29. Egla says:

    90 millions???? Ugh.. I can’t stress enough what just 1 million or even 500 000 can do for me and my family. Oh well they have worked for that money and can afford that price so kudos to them.
    Someone in here said that a house like that most likely needs a lot of staff and they can afford that too and also they can take care of the property by hiring professionals so it makes sense to have such a huge house.
    But still i can’t think as a rich person. All that cleaning and polishing and…all those windows. I hate cleaning windows. Four pools!! I was in Spain this July on vacation in a rented villa (not by me of course). there was a small pool there and a guy use to come twice a week to check the water and maintain it. Imagine 4 pools.

  30. yyu says:

    1- You are beyonce, millions adore you for you. Do not use the likes of Kylie and Black Chyna as your makeup muses just to fit in and remain ‘hip’ and young looking. What is with those lips so overdrawn? Your run of the mill trashy IG ‘models’ would kill to be you, and you look trashier than all of them in that vid!

    2- Jay Z has been even more manipulative and opportunistic in regards to their personal lives while promoting his dumbass album. He cannot seem to keep a lid on it. Very Scott Disick.

    3- They are beyond manufactured at this point, that it is laughable. She is coming off as very thirsty with her IG and he feels that he needs to play the tabloid game to remain relevant as a rapper.

    4- Their overhead must be insane. Maybe the highest among all celebs. It is not smart to make such a small down payment and burden yourself with the mortgage when you have the money. It doesn’t matter how much money you make – you pay as much as you can as soon as you can. I thought they were smarter than that.

  31. cake says:

    I’m happy for them and hope to see some of the rooms!

  32. Avamae says:

    I really don’t understand why she looks so cheap in her little Video.
    NewRich cheap.

    About their real Estate, eh whatever, let them burn through their Money faster than they can earn IT. Look how fast Peoples forget to watch their Spendings like this Tori Spelling woman.
    Maybe they were rich too long and forgot their beginnings when they had to make it with less Money and just be wealthy and happy.
    Lol.

  33. Bitsy says:

    1. I’m shocked at how increasingly cheap Bey is appearing. But I also know she’s darn smart and she knows her audience. She is a slave to her audience.
    2. These people – and all wealthy people – pay very smart people a lot of money to ensure they don’t make poor investments. This was no impulsive purchase and they will see their money triple.
    3. I’m surprised so many people think the wealthy, liberal, elite give 2 farts about living a minimalist existence so their carbon footprint can save the poor bla bla bla. The rich and wealthy have figured out how to keep the peasants from rioting by becoming relatable in their image. Most of them are just giving lip service when they go in about issues of the day. And even if they cared before, they weren’t rich before. That level of status really does change a person. Most of us have NO IDEA the privelage and luxury they are afforded. When I visit rich friends, and I’m talking middle class rich, I get comfortable realquick. Money buys amazing things that improve your very existence.
    4. Don’t fool yourself thinking other wealthy elite are above this… they are just much much more private.

  34. Elia says:

    Ugh. Her nails need to get touched up. I really don’t care for her or him, but I approve of her never giving interviews again.