Among celebrities, power couple Jay-Z and Beyoncé reportedly have the most expensive mortgage to pay off for their real estate property.
Rich celebs often choose to take out a mortgage than buy their homes outright, according to financial planner Robert Pagliarini, president of Pacifica Wealth Advisor. The exceptions, however, are celebs such as Kanye West and Rihanna who purchased properties outright without help from a bank, explained Pagliarini.
Holding a mortgage can actually help you generate income and increase your total net worth, according to the Bank of New York Mellon Corporation (BNY Mellon). Generally, a mortgage can also be one of the least expensive types of debt.
“Instead of putting all of your cash into the home purchase, you can invest it wisely in long-term, diversified assets; and in the event of an emergency, you’ll have easier access to cash if it’s not all tied up in your home,” BNY Mellon reported.
The Carters have a property estimated to cost $88 million. The 30,000-square-foot Bel Air mansion has eight bedrooms, 11 bathrooms, four outdoor swimming pools and a spa and wellness center, according to The Daily Mail. It also includes a garage with 15 cars, a recording studio and bulletproof windows.
The pair borrowed $52.8 million from Goldman Sachs to buy the house. The loan reportedly has a fixed rate of 3.15 percent, resulting in monthly payments of about $226,901 for Jay-Z and Beyoncé, who have a combined net worth of $1.8 billion. However, public records reportedly show that the couple pays a monthly payment of $149,600.
The Bel Air mansion was purchased in 2017.
In addition to their Bel Air home, Jay Z and Beyoncé have a number of multi-million-dollar mansions throughout East Coast and the South. A month after getting their Bel Air mansion, Jay-Z and Beyoncé acquired an East Hampton waterfront manor for $25,925,000. In 2017, the Carters reportedly spent $114 million on their coast-to-coast real estate deals.
Drake, who this year bought a Beverly Hills mansion from British singer Robbie Williams for $75 million, also carries a high mortgage. He has a $52.5 million mortgage with Bank of America, according to The Daily Mail. His monthly mortgage is estimated to be $220,000, with an speculated interest rate of 3 percent.
The Beverly Hills property is the Canadian rapper’s first real estate buy in the Los Angeles market. It sits on 20-plus acres, and is said to be one of the biggest estates in the 90210 zip code. The estate features an 11-car garage and luxury amenities such as an elevator, wine cellar, gym and game room, according to Dirt.
The main house boasts seven bedrooms and 13 baths, a gourmet kitchen, a family room and a movie theater, a separate staff wing with three staff bedrooms and a staff kitchen, according to older listings for the property.
Another Canadian artist, The Weeknd, also carries a mortgage on one of his properties. The 32-year-old singer dropped a whopping $70 million in 2021, on a nine-bedroom Bel Air mansion, The Wall Street Journal reported.
The 33,000-square-foot mansion has a sports court, a spa with a sauna, a hammam (Turkish bath), an indoor pool and an outdoor infinity pool with a waterfall. There’s also a movie theater, a gym and, of course, a music studio.
For the costly purchase, according to The Daily Mail, The Weeknd initially took out a $48.3 million mortgage, with his monthly payments coming to about $203,000.