With the possible exception of lottery winners, actors, musicians and entertainers are the professionals most likely to find themselves in a position of relatively sudden, often unanticipated, wealth. Should their careers progress well, there's also a high chance that this wealth will continue to accumulate, putting these creative individuals in need of advice on how to wisely and securely invest their money. While access to these exact consultations is understandably hard to come by, it's easy to gauge the answer simply by looking at the most significant celebrity asset: property.
Long-term High Net Worth Individuals (HNWIs), such as singer/songwriter Sting, whose career now spans over thirty years of success, have long seen the sense of putting their earnings into tangible bricks and mortar. With a global portfolio of over eight homes, Sting recently sold his central London townhouse for £19 million, after buying it in 2003 for £5.7 million. The ex-Police frontman has also invested in the prestigious new development at Battersea Power Station, purchasing a luxury apartment in 2014. His 16th-century Tuscan villa is available to rent for private functions, thereby ensuring a regular return on his portfolio.
Some of the most expensive real estate in the world is now in Sydney, Australia, which some surveys have placed as the third least affordable market in the world. Of course, it remains well within budget for actress Cate Blanchett and her theatre director husband Andrew Upton, who just sold their Hunters Hill mansion for $20 million after purchasing it in 2005 for £10 million.
However, given the Hollywood connections of most of the world's famous faces, Los Angeles neighbourhoods remain some of the best examples of celebrity investment. While most buyers must engage in upgrades and renovations to add value to their property, some celebrities have become so iconic that their previous ownership is enough to inflate the price tag. In 2010, Marilyn Monroe's Brentwood home sold within 30 days of listing for $255,000 more than the asking price, after receiving multiple offers from dedicated fans of the late actress.
On the east coast, actor Daniel Radcliffe's loft in Soho, purchased in 2007 for $4.3 million, is available to rent for $19,000 a month, making the Harry Potter star yet another celebrity who now generates income from property as well as performance.
Since she soared to fame in the late 2000s, songstress Taylor Swift has put much of her now considerable fortune into real estate. In addition to her investments in Nashville, New York and Los Angeles, she has also notably employed a technique known as flipping, in which a house is bought and then rapidly sold at a profit, usually with some quick renovations to justify the price hike. Within a seven-month period in 2013-2014, Swift bought an estate in Cape Cod, Massachusetts for $4.8 million and sold it for $5.7 million, earning an extra million dollars to put towards her next buy.
To follow these celebrity examples and invest your own hard-earned wealth in luxury real estate, contact Engel & Völkers. With shops in desirable neighbourhoods from Chelsea, London to Beverly Hills, Los Angeles, we can guide you towards quality rental properties, remote mansions and sprawling central townhouses alike.