Celebrity Housing Bubble
Former Guns N' Roses guitarist Slash bought a home in the Hollywood Hills for $6.2 million in January of 2006. When he was only able to get $5.7 million from a buyer last December, he determined that he had paid too much for the home.
The loss prompted Slash to file suit against his real estate agent.
Percentage wise, he is doing better than most Californians, but why not sue when your celebrity presupposes your ignorance and insulates you from market conditions.
[Former NBA star Latrell] Sprewell had his 70-foot yacht repossessed last year and the same thing is about to happen to his home if he doesn't come up with money fast. Citizen's Bank filed a foreclosure suit on Sprewell's $405,000 home last week. According to documents, Sprewell has not made his $2,593 per month mortgage payments since last September.
Michael Jackson's famous Neverland Ranch is also at risk. As of last November, Jackson owed back mortgage payments in excess of $200,000 on his $23 million home loan. There is a rumor that default has been put on the back burner so that the pop star can find someone to refinance his loan. [Read]
The agony of bad decisions. No one is immune to market conditions.
We need to see how many political celebrities--politicians--have made bubble decisions.