Celebrities and real estate investments

Over the last few months we have covered some of the leading lights in the world of showbiz, sport and finance who have invested heavily in worldwide real estate. We have seen properties slashed in price by tens of millions of dollars, significant profits for celebrity investors and some astounding decor. Some of the best-known showbiz stars in the world have built up enormous real estate portfolios while they continue to replenish their bank accounts with their “day jobs”. Why are celebrities attracted to real estate investment?

Looking to the future

A number of the leading celebrities of today have been around for decades and many have made some extremely lucrative real estate investments in years gone by. We have seen properties acquired for tens of thousands of dollars back in the 1960s selling for tens of millions of dollars today. We have seen celebrities build up enormous land banks and properties with views that would literally take your breath away.

There is obviously an array of investment advisers behind the majority of celebrity real estate investors but a number of celebrities have taken the bull by the horns and taken full charge of their own real estate portfolios.

Celebrities swap real estate investments

If you follow the world of celebrity real estate you will notice that on many occasions celebrities will buy and sell properties between themselves. Some of these transactions are completed off market and indeed many never see the listing books in their life. In some ways you could argue that the modern day celebrity is replacing the celebrities of years gone by in some of the more showbiz type areas of New York City for example. However, while these “upstarts” might think they have got one over on the stars of years gone by, who is banking the millions of dollars in profit?

In many ways it is not what you know but who you know in the world of real estate where movers and shakers will very quickly bring together buyers and sellers. We have heard stories of intense negotiations, tens of millions of dollars slashed off asking prices and some listing prices which do not bear any resemblance to the real world. On a regular basis we also see celebrity struggling to finance their lifestyles and indeed a number have faced bankruptcy, often forcing them to jettison real estate at below market prices.

The quest for privacy

While many celebrities like the thought of being in the public eye whether this is for their latest movie, the latest song of their latest real estate transaction this is not always the case. More and more we are starting to see celebrities looking to maintain their privacy for as long as possible when operating in the real estate market.

Indeed just recently it took four months for Kevin Spacey to be revealed, via official documentation, as the buyer of a multi-million dollar property. This is a man who values his privacy, has a personal fortune of over $100 million and a great appetite for real estate. However, like so many celebrities his quest for privacy can be very difficult to maintain.

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