After the birth of their twins, Queen Bey and her hubby have finally chosen the place they will bring up their family.
For now, at least.
The winning abode is an $88 million (R1,2 billion), two-acre hillside estate in Bel Air, Los Angeles, the billion dollar power couple making the sixth-priciest home purchase in the history of Los Angeles to obtain it, reports Business Insider.
Other than 30 000 square feet of living space “housed in six glass-walled structures” the house is pretty impressive, details Variety:
The monumental, ultra-modern compound, designed by architect Paul McLean and spec built by Dean McKillen, son of Irish billionaire property developer Paddy McKillen, is hidden behind massive iron gates on about two hillside acres and comprises six sleek, glass-walled buildings that combined encompass around 30,000-square-feet of living space with a total of 8 bedrooms and 11 bathrooms.
A sculptural circular staircase in the three-story main residence is lined with leather and vast banks of bulletproof floor-to-ceiling glass panels throughout the compound open electronically at the touch of a button.
Another 10,000-square-feet of outdoor living space includes an outdoor lounge under a cantilevered roof along with four outdoor swimming pools, a full-sized basketball court, a spa and wellness center, garaging for 15-cars and separate staff quarters.
The property also has:
- four outdoor pools
- a spa and wellness center
- a full-sized basketball court
- a 15-car garage
Take a look:
Despite being Forbes’ highest-paid celebrity couple in the world, holding a combined fortune of $1,16 billion (R15 billion), the two were able to secure themselves a whopping $52,million (R688 million) mortgage from Goldman Sachs for the purchase.
That leaves the couple with a massive monthly payment of $149,600 (R1,9 million).
But why? Well:
[I]t 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.
A massive loan at a low interest rate? Winning.
Also, Robert Cohan, a managing director at Carlyle Financial in Los Angeles, told Business Insider that:
“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.”
Due to the loan being available in public records, here’s what we know about the way the two went about securing their home:
The couple put down 40% of the purchase price — $35.2 million — in cash and financed the mortgage through two separate trusts, public record shows. Their loan is a five-year adjustable-rate mortgage with an initial rate of 3.4%, meaning the rate will stay the same for the first five years and then adjust annually based on Libor, a benchmark rate used by the world’s leading banks.
Until then, they’ll be making interest-only payments.
Of course, there are various risks associated with dealing with a loan in this size, from both sides, but if it works, it works.
I am sure Beyoncé wouldn’t make a decision without a whole lot of thought and preparation behind it.
[source:businessinsider&variety]
