Jay-Z and Beyonce's Mortgage Is News For Some Reason

[TheRegalMachine]

I had the news on in the background while dealing with my own life's bullshit when the local news decided to report that rapper Jay-Z and his wife, singer, Beyonce have a mortgage of (estimated) $52 million. The anchors then had a moment of solemn silence followed by shaking their heads as if to shame the pair.
"Wow, that's just wow.", said male anchor has he stared into the camera.
I was in the room with someone else who proceeded to proclaim "Mmm, mhm, mhm, the lord give it and the lord can take it away. That doesn't make any sense."

Now, skip a news story and the same anchors begin smiling ear to ear when they do a story about the current Powerball which is at $700 million. In jubilant tones they wax and wane about how great it would be to win.
The same person in the room with me had their eyes glue to the Powerball story.
I know this person pretty well and they do nothing but wish for large sums of money to just magically manifest in their hands.

I don't understand this duality so many people seem to share. Where they pretty much curse the wealthy while at the same time want to be a wealthy person.
I'm sure I have acted like this at some point in the past but I can't remember it which is probably for the best. It's pretty F*cking gross.
To be so openly envious, so negative on such a toxic level toward strangers, is disgusting to me.
The media getting in on it just as off putting.
The fact they took time out of news just to shame a couple in the music industry just for funding their dwelling is sad.
The SCRIPT is real as F*ck.

I dunno.
How do you all feel about this behavior towards wealthy people?

 

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[Longinus]

 

[Longinus]

 

[jon.a]

@MJ DeMarco gave us a Rant section so that we have a place to vent.
Well done.

I had the news on in the background while dealing with my own life's bullshit when the local news decided to report that rapper Jay-Z and his wife, singer, Beyonce have a mortgage of (estimated) $52 million. The anchors then had a moment of solemn silence followed by shaking their heads as if to shame the pair.
"Wow, that's just wow.", said male anchor has he stared into the camera.
I was in the room with someone else who proceeded to proclaim "Mmm, mhm, mhm, the lord give it and the lord can take it away. That doesn't make any sense."

Now, skip a news story and the same anchors begin smiling ear to ear when they do a story about the current Powerball which is at $700 million. In jubilant tones they wax and wane about how great it would be to win.
The same person in the room with me had their eyes glue to the Powerball story.
I know this person pretty well and they do nothing but wish for large sums of money to just magically manifest in their hands.

I don't understand this duality so many people seem to share. Where they pretty much curse the wealthy while at the same time want to be a wealthy person.
I'm sure I have acted like this at some point in the past but I can't remember it which is probably for the best. It's pretty F*cking gross.
To be so openly envious, so negative on such a toxic level toward strangers, is disgusting to me.
The media getting in on it just as off putting.
The fact they took time out of news just to shame a couple in the music industry just for funding their dwelling is sad.
The SCRIPT is real as F*ck.

I dunno.
How do you all feel about this behavior towards wealthy people?

 

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[TheRegalMachine]

**duplicate post**

 

[MJ DeMarco]

The bigger question is, why would they NEED a mortgage?

 

[MidwestLandlord]

Now, skip a news story and the same anchors begin smiling ear to ear when they do a story about the current Powerball which is at $700 million. In jubilant tones they wax and wane about how great it would be to win.

How do you all feel about this behavior towards wealthy people?

Damn greedy rich people and their $52 million mortgage! I hope to win the powerball so I could be just like them!

Wait, what?

(although, a $52 million mortgage would normally make me wonder if they are just high-income sidewalkers. But this couple is worth like a billion dollars, so percentage wise that's less than most people spend on housing haha)

 

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[MidwestLandlord]

The bigger question is, why would they NEED a mortgage?

Opportunity costs?

Hard to net more than the mortgage interest with most investments though. *shrugs shoulders*

Maybe it's so people will talk about their $52 million mortgage?

 

[TheRegalMachine]

The bigger question is, why would they NEED a mortgage?

Maybe some kind of legal tactic? I mean it's a Hollywood/entertainment marriage. What happens when two wealthy superstars split up or one of them loses a ton of their money?

a $52 million mortgage would normally make me wonder if they are just high-income sidewalkers.

Maybe it's so people will talk about their $52 million mortgage?

A lot of folks in the entertainment industry are high-income sidewalkers. All it takes is one screw up or over spending and a fat chunk of their money is gone. And I wouldn't rule out this being a publicity grab but it doesn't excuse the sidewalkers dualism.

 

[G-Man]

Opportunity costs?

Hard to net more than the mortgage interest with most investments though. *shrugs shoulders*

That's my guess. I would imagine their return on capital from their brands/businesses, is way higher than the 4% they pay to the bank.

It's always possible they're basically on the Floyd Mayweather path to hundred million dollar broke-ness, though.

EDIT: I really don't envy rappers. It has to be really stressful to try to get rich by constantly having to look rich. That's a high dollar hamster wheel I wouldn't wish on anyone.

 

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[MJ DeMarco]

I would imagine their return on capital from their brands/businesses, is way higher than the 4% they pay to the bank.

I'm sure that's what it is, moreso than "sidewalking" -- mortgages are still considered cheap money and if you have a business that generates big % returns, then putting that $52M somewhere else is a business decision.

$52M into house. 0% return.
$52M into more business ventures = 10% return (net return w/mortgage = 6%)

I'm sure he's getting more than 10% on his ventures though -- you don't become ultra-wealthy dabbling in the 10% ranges.

 

[The-J]

Yea I'm willing to bet this is a business decision. Buying a $52 million house cash is what most of us would love to do, but if you have that in cash it suddenly makes less sense to put all of that in a place to live.

Jay-Z makes a LOT of investments. He recently invested, for example, in an app that some Russian kid made that helps people charter private jets whenever they need it. He's got his hands in so many things, some of them aren't high profile at all (well, he makes them high profile just by investing in them, just a consequence of being Jay-Z).

I don't pretend to know Jay-Z or his return but I trust he knows what he's doing when he gets a mortgage that big.

 

[JAJT]

I don't understand this duality so many people seem to share. Where they pretty much curse the wealthy while at the same time want to be a wealthy person.

It's called jealousy. Been around forever.

Some of it is also ignorance where they feel that they know how to spend other people's money better than they do. Usually to the tune of "Oh if I had that amount of money I'd just pay off my debts, get a normal sized home, pay it off in full, and donate the 52 million to charity/cancer/whatever".

That's my guess. I would imagine their return on capital from their brands/businesses, is way higher than the 4% they pay to the bank.

Also a chance that they would use their home as an income generating asset (rent it out for high end parties and such) and/or a place of business (recording studio, etc...) which means tax write-offs and/or income that could be factored into their decision.

While I can't stand either of those two celebrities, or their music, I'm pretty sure they are smart enough to run decisions like this by whatever team of on-hand experts they keep around. Especially Jay-Z who I never took for a business slouch.

 

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[Xavier X]

Jay-Z certainly isn't your typical rapper. He's as shrewd a businessman as they come.

It would take a lot to send him to the poorhouse.
Unlike the typical rapper, if his records stop selling, that's just one source of income lost (albeit a major one).

Talking about the lottery, I like how most people have detailed plans of what they'll do with a jackpot win.
However, ask them what their plans are to get off the involuntary ramen diet, and they become a deer in the headlights.

 

[Owner2Millions]

I'm actually surprise more real estate investors didn't chime into this thread. To me.....what

@JAJT said was true. It's for tax incentives. I'm sure this isn't there first large scale property and I think they have large scale apartment buildings as well as other mansions and foreign real estate. From what I hear Floyd May weather also has a ton of real estate as well. Real estate has a lot of tax heavens from what I read. So those two guys are definitely investing on a large scale and not just spending money on consuming things.


Sent from my iPhone using Tapatalk

 

[ZCP]

Mortgage interest is tax deductible.

 

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[garyjsmith]

Beyoncé and Jay-Z bought an $88 million house — here's why their $52 million mortgage might be a smart business decision

BI decided to make this a talking point as well.