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Despite Paris Hilton’s high net worth, She and her husband reportedly took out a $43.75 million mortgage for their $63 million Beverly Hills mansion, which is a more common move among super-wealthy people than you might think. Experts say wealthy buyers often keep their cash liquid and use mortgages as a strategic tool to maximize flexibility and invest in high-yield opportunities.
With Paris Hilton’s estimated net worth of $300 million to $400 million, it may seem strange that she reportedly took out a mortgage on her recent home purchase.
Hilton, whose vast fortune comes from 19 product lines, real estate, media and entertainment, brand partnerships, and her reality show, simple life, Earlier this year, actor Mark Wahlberg’s former estate in Beverly Hills was bought for $63 million.
But what wasn’t reported at the time was that Hilton and her entrepreneur husband, Carter Ream, reportedly took out a mortgage on the home, which might seem like an unusual move for the 44-year-old hotel heir. And what’s even more surprising is that they took out a loan after buying the 12-bed, 20-bath home, which features a $43.75 million mortgage with JPMorgan Chase at an interest rate of 5.25%.
But this type of arrangement is not as rare as it seems, real estate experts say.
“It surprises a lot of people, but it’s actually common for the mega-rich to take out a mortgage — even if they can write a check for the full purchase price,” said real estate agent Evan Harlow of Maui Elite Properties. fate.
In fact, public records show that ultra-wealthy celebrities including Beyoncé, Jay-Z, Elon Musk, and Mark Zuckerberg have financed their homes.
“The takeaway for the average buyer is not to replicate their exact vision, but to understand the principle,” Harlow said. “Sometimes the smartest financial move is not paying for everything, but making your money flexible and working for you.”
While this may seem counterintuitive to getting a mortgage in today’s market, where rates are still hovering in the 6% range, it can actually be a savvy move for ultra-high-net-worth individuals.
In fact, just because someone has the net worth to buy a home, “it doesn’t necessarily mean how they want to allocate their cash,” said Miltiadis Kastanis, director of luxury sales for Compass, South Florida. fate.
“Ultrahigh-net-worth individuals think differently about liquidity and leverage; they want to put their money to work in investments, business or even art, rather than tying it all up in one asset,” said Kastanis, who represents high-profile celebrities in real estate transactions.
