Hollywood's biggest (real estate) losers

I understand many of you do not like celebrity items. Still, this one came recommended by a reader, and I pass it along as a sign of the times: Forbes.com has compiled its own list of "Celebrity Real Estate Losers":

"Even Hollywood's rich and famous can't avoid the housing downturn that's sweeping the nation. ... Realtor Barry Sloane of Sotheby's International Realty says it's the owners trying to sell homes in the $3 million to $6 million range that are having the most trouble."

Among the celebrities mentioned: Brad Garrett, who, according to Forbes, paid $9.75 million for his Hidden Hills home (pictured), and now has it listed for $8.8 million; Guns N' Roses guitarist Slash, who paid $6.25 million for a Hollywood Hills home and sold it for $5.7 million; and Ed McMahon, who first listed his Mulholland Drive estate for $7 million, but has cut the asking price to $5.75 million.

Photo credit: L.A. Times

Comments

[mike]

i think your opening line was right...who gives a f$%&*^#ck

[Orlando Florida Homes For Sale]

Sometimes it better to underprice a property and people can get into a bidding war and actually it can come out more than what originally wanted. I don't think this will happen but I'm sure it will go for more than the list price. Unless you have to sell now is the time to wait on an investment property like this. If money not an issue sell and move on.

[Hula Girl]

Umm. Hard to rouse any sympathy for people who can simply shrug and write it off...

We all should have such problems..

[DF]

The relevance of this is not that the owners are rich celebs, but that the housing slump is affecting high-end properties as well as mid-range ones. At the outset of the downturn I recall there being evidence that there was still lots of activity and some appreciation above the $1m mark. These figures suggest that the rich are no longer immune to the housing crisis.

[seattlesnoop]

A feel good story, gave my day a little lift. Tee-hee!

[TakeFive]

mike wrote:

"i think your opening line was right...who gives a f$%&*^#ck"

Lighten up, will you. This is a blog, not the economics forum at Davos. How many stories on median sales price declines do you want?

Taking a million dollar hit on a residential property is part of the LA real estate story. Up to now, I've only seen reports that the high end is holding it's value and the decline has been limited to low and mid-range homes.

This may be an early indicator of what's in store for the higher end. Will we see walk-a-ways by the rich and famous?

[Laker]

Posted by: DF "At the outset of the downturn I recall there being evidence that there was still lots of activity and some appreciation above the $1m mark. These figures suggest that the rich are no longer immune to the housing crisis."
DF,
The housing market consist of really wide selection of price that vary from $150,000 to $82,000,000. However, they all share one thing and that is similar to the food chain. In order for it to function, every link /step has to work. If something is missing, eventually it will give, and the pyramid will collapse. One of the reasons is people that are moving upgrading and need someone to buy their stuff at some point...Also workers bees that also need to live somewhere so they can come and work for the rich guys and get back home...

[CaptHowdy]

I can hardly wait till the dem pres raises their taxes next year. Gonna feel good.

[toby]

Sorry but I've been out of it lately. The last I looked, everyone was saying that the rich were going to be completely unharmed in this bubble.

So, let me guess, people are more in tough with reality now? Or are people still saying it will bounce back at the end of 2008?

Cause this is just the beginning. There's a lot more blood to be spilled on the dance floor.

[Laker]

Posted by: TakeFive: "Will we see walk-a-ways by the rich and famous?"

TakeFive, the rich and famous buy their houses with cash. They don't need mortgages, so essentially they are walking away and foot the bill themselves. (instead of dumping on the banks)

[tew]

Rounding error for them. All they need to do is go out at shill some product (recording an advertisement is a day or two commitment) to make up the difference. People may be walking away from mortgages and 'unable' to pay for any medical care, but you can bet there's always enough money to buy more crap endorsed by celebrities.

[BottomFisher]

Maybe (Garrett) Robert could sell it to his brother Raymond....... (Debra mumbles "Idiot")

[xtine]

LAKER-

They buy their houses for cash? You sure? Why would they when borrowed money has been so cheap? Isn't it a rule to never use your own money?

BTW - That's not a rhetorical question. I really don't know the answer, and I'd like to know how you know, because I intend to be filthy rich one day and I want to fit in with all my filthy rich friends.

[TakeFive]

Laker wrote:

"...the rich and famous buy their houses with cash. They don't need mortgages,..."

I would think the mortgage interest deduction would be especially attractive to those in the higher tax brackets.

I would also suspect that folks like Garett have a production company or some sort of LLC that actually buys the home.

[bottom line]

Is Brad Garrett (sorry, I had to scroll up so I could spell his name correctly) a celebrity?

How many "celebrities" do you have in a 50 mile radius?

How many "flunkies"? How many honest people, how many shysters? Ok, besides lefty.

I know who James Garner is/was? Who is Brad Garrett?

[Tombstone Realty]

Slash's pad probably decreased in value because of the "ANARCHY IN THE UK!!!!" emblazoned across the marble tile foyer entry in non-removable spraypaint.

Or maybe it was the hole in the wall where a TV once nested.

No idea who Brad Garrett is...son of Leif?

[david]

I track the westside closely (PP, Brentwood, Bel Air, Westwood, Santa Monica) and I have to say I still see a lot of strength there. I must be missing something because I see WELL priced properties $1million and up selling in two weeks still. Some have mulitple offers even. I don't work as a realtor but do have my broker's license and do a few spec homes a year. But I still talk to a bunch of agents. Sure, I'm holding my breath for my spec homes but truly the numbers I'm seeing are not showing much of a slow down. Actually, I'm quite amazed at how fast some properties are still going into escrow.