A property expert has shed light on how much Kanye West might have profited from his Malibu mansion, had he not rendered it ‘unliveable’.
The ‘Bound 2′ rapper acquired the beachfront property in 2021 for an astonishing $57 million.
However, for West, who has previously appeared on Forbes’ billionaires list, this amount might seem negligible.
Following his fallout with Adidas and the subsequent end of their partnership, West’s net worth is now estimated to be around $400 million.
Making wise investments is crucial to maintaining wealth, and unfortunately, West’s Malibu property turned out to be a missed opportunity.
At 47, he listed the home earlier this year for $53 million, a price which was more than $4 million lower than his purchase price.
Due to the unfinished renovations, the asking price had to be slashed further to $39 million, which was still considered optimistic.
Ultimately, the home sold for $21 million, resulting in a $36 million loss for the rapper.
Had West not made what were described as ‘dumb’ alterations, he could have potentially made a significant profit.
Joshua Houston, a property expert at Household Quotes, told UNILAD that while not everyone profits from their homes, West had the potential to do so.
“It’s a common myth that renovating a property will automatically increase its value,” he said.
“Ultimately a property is only worth what someone is willing to pay. If a home has an unusual design, buyers will be put off as they know it will require more money and time to get it up to scratch.
“So it is hard to say what the value of Kanye West’s former home would’ve been had he completed the renovation work.
“It is predicted however that in 2024, house prices will increase by 6.2 percent in Malibu. Now, if we do a rough estimate and assume the property would’ve increased in value by 18 percent in those three years, the property he bought for $57.3 million, would now be worth over $67.5 million.”
Although the home was in poor condition, Houston still considered it a ‘sound investment’.
Houston elaborated, “Given the property has been purchased by an investment company, they must be confident that it is repairable.
“The investors having to put in $5 million suggests that there’s quite a bit of work that needs to be done.
“But given the value of similar properties in the area, and the recent increases in property value, this seems like a sound investment.”
Explaining why West received so little for the mansion, Houston added, “The reason they got it for just $21 million is down to what’s been reported about the condition of the property. It currently isn’t liveable, given its lack of plumbing and having been gutted from the inside.
“This does mean, however, that the new owners can easily add a style that would be popular with buyers.”