Whoever buys the house will easily have to pay more than $1 million a year on maintenance, and some $4 million in property taxes, Nartey estimated. The mortgage payment is just the beginning. Williams agreed, saying that the purchase would likely be all cash. If they do need to request a loan, they tend to borrow against their assets, or secure a private line of credit with banks they have previous relationships with, often at lower interest rates than a traditional buyer would get from a mortgage, he added.
Whoever buys this compound will likely have the cash to buy the property outright, Nartey said. In other words, these buyers aren’t offering a 20% down payment and applying for a mortgage. “This kind of buyer, their amount of liquidity could be the same as the GDP of some small countries,” he said. luxury realtor Kofi Nartey, who isn’t connected with the sale. Now that Los Angeles has begun to reopen, people are flocking back to the city, boosting real estate values, she added.įinancing a property worth nearly $300 million is going to be very different than financing the average house, said L.A. Luxury real estate prices wavered during the initial months of the pandemic, as remote work contributed to an overall exodus from cities, said Redfin chief economist Daryl Fairweather. Home prices in Bel-Air have risen by almost 50% since last year, according to online real estate broker Redfin. Indeed, L.A.’s luxury market has been on a tear recently.
Since developer Nile Niami began working on the house a decade ago, the real estate market has caught up, Williams said, noting that her firm brokered the recent sale of a $133 million house, which is a quarter of the size of “The One.” Courtesy Unlimited Style Real Estate Photography