Over the last few weeks we have seen properties change hands in the likes of Malibu and 443 Greenwich Street for tens of millions of dollars. These areas are celebrity enclaves where the rich and famous either buy or rent property which gives them privacy and for many a good long-term solid investment. If locations such as Malibu and 443 Greenwich Street, to name just two examples, are performing well in the real estate market is this an area that traditional investors should be looking at?
Money is no problem
The reason why many of the celebrity enclaves perform so well with regards to real estate values is because for many of their inhabitants money is literally no problem. If we take Malibu for example, we are seen properties changing hands this year for $40 million, $50 million and above. Some investors, celebrity investors, often pay over the asking price just to secure a property rather than haggle and potentially miss out. So, whether what a celebrity pays for property in the likes of Malibu or 443 Greenwich Street is the “correct price” is debatable. However, while there is demand, potential sellers can literally take their pick!
Celebrities attract celebrities
It is not difficult to see why celebrities attract celebrities in the world of real estate because more often than not the areas they inhabit have very tight security and a high level of privacy. This is exactly what celebrities want during their relaxing time and many are prepared to pay a little extra for this privacy. If we look at 443 Greenwich Street this has and continues to attract an array of celebrity investors. It looks as though the initial heavy discount offered to Justin Timberlake has more than paid for itself as celebrities literally queue up to acquire apartments and penthouses.
You need to be quick
While a number of properties have changed hands in the celebrity market you do need to be quick if you’re looking to acquire properties within this social scene. Indeed, we have seen a number of properties change hands for tens of millions of dollars which have never officially been up for sale. In many cases it is who you know not what you know because some real estate agents in the area may have their ear to the ground and hear of private celebrity real estate sales. Maybe you should make contact with local agents?
In theory there is no reason why you could not flip a property which you bought at a good price which is situated within an area occupied by celebrities. There may also be options to rent property because some celebrities will only be in a certain region for a certain amount of time with work. If you can secure a “competitive” price for a property in this kind of area then there is every chance, if you are patient, that you could bank a good profit.
Conclusion
In this day and age there is no doubt that celebrities attract celebrities when it comes to real estate and house purchases. Therefore, if you are able to acquire a property within this social network there may be good opportunities to flip investments or rent them out for a significant income. If you look at Malibu for example, historically we have only seen between one and two property sales per year in the celebrity region. However, this year so far we have seen five substantial sales which might offer some opportunities to ambitious real estate investors – but have you got literally tens of millions of dollars available?