Investment flops of the stars

The star-studded group have one Oscar, 13 Grammy awards and an estimated net worth of over $119 million between them. But unfortunately, savvy real estate investors they are not. Here are some of the worst Tinseltown real estate blunders:

Lenny Kravitz
At the peak of his career in 2001, Kravitz splashed out on a five-bedroom, seven-bathroom duplex in New York’s trendy Soho district for $17 million USD. When attempting to sell it three years later, the asking price was down to $13 million. The rock star-turned-designer then sunk $1 million into property renovations in a desperate bid to find a buyer.  Back on the market listed at $19.5 million, the apartment sat for another three years before Kravitz once again dropped the price to $14.9 million. After waiting over a decade -- and losing over $3 million -- Kravitz finally sold the place to fellow musician Alicia Keys.

Nicolas Cage
By 2009, Nicholas Cage owned a mansion in Rhode Island, a castle in England, two homes in New Orleans, a home in Vegas, a $1.7 million pad in Newport Beach and a Manhattan apartment worth a modest $9.5 million. However, Cage was also elaborately spending on cars, artwork and artefacts, so much so, that the IRS intervened in 2009 claiming Cage owed over $6 million. As a result, the Oscar-winner had to sell back most of his properties to the bank, including a Bel-Air mansion that was listed at $35 million. Cage sold it for $10.5 million after it was repossessed.

Scarlett Johansson
The Avengers star purchased her 1930s style LA villa in 2007 for a cool $7 million, and then proceeded to renovate. When she put the 4,300 square foot property back on the market two years later, the asking price was $1.9 million less. In spite of new state-of-the-art appliances and security (which helps when you count Charlize Theron and Orlando Bloom among your neighbours), Johansson finally sold the property for less than $5 million.

Beck may know the indie music scene like the back of his hand, but the same can’t be said for the real estate market. The musician sold a 1,600 sq.-ft. ranch for $1.7 million, having paid $2.1 million for it in 2007. Next, he invested in a 5,700 sq.-ft., nine-bathroom home complete with a recording studio for $6.8 million. After attempting to flip it for $9 million in 2008, the Grammy winner had to drop the asking price down by $4.4 million before finally selling it to Grey’s Anatomy creator Shonda Rhimes.

Toni Braxton
Having filed for bankruptcy twice in the past decade, Toni Braxton may want to invest in a new financial advisor before her next property. It’s estimated Braxton’s debt neared the $50 million mark, resulting in the foreclosure of several homes. Among the casualties were Braxton’s $2.6 million home in Nevada and the $1.2 million home in Georgia.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?