Why Rihanna, Kevin Hart, and More Stars Are Going to Buy The House Next Door

Why Rihanna, Kevin Hart, and More Stars Are Going to Buy The House Next Door ...

Relations between neighbors in Los Angeles can be difficult. When you move into a house... invite your neighbors to a party and hope they dont show up, says the realtor.

Even halfhearted neighborly friendliness has its advantages, particularly when someone is moving out. Buying a home is always going to pay more than anyone else, according to Douglas Elliman, a Million Dollar Listing star.

The trend of buying up one's mansion, sometimes known as "land banking," has skyrocketed. Celebrities including,, Annie Lennox, Anthony Hopkins, Travis Scott, Kevin Hart, and Matt Groening have also purchased adjoining properties, including, Ari Emanuel, Chuck Lorre, George Lucas, and Matt Groening, according to Facebooks Jason Rubin.

The most expensive transactions in 2021 are Evan Spiegel and Miranda Kerr's $100 million purchase of two lots in Holmby Hills and Jan Koum's purchase of Diana Jenkins' estate. These examples are typical examples of the practice.

The Agency believes that the trend has begun in 2017, when the country revised its basic mansionization requirement, reducing the size of single-family homes that can be built on a lot to 45 percent. Therefore, when you can buy the property next door, all of a sudden your 30,000-square-foot lot, you can transform it into a 60,000-foot lot. So the bigger the lot, the more valuable it becomes, said The Agency.

Arana contends that the finite nature of land in L.A. and relatively small lots in expensive areas such as Beverly Hills, Brentwood, and Pacific Palisades are also a factor.

"It's really, really safe play from an investment standpoint," says The Agency.

The property from New York City was owned by Tony Curtis and later Cher in December 2020.

When it comes to the epidemic, wealthy homeowners are rethinking what their home means to them. Notes: People want more space. They want to have family and friends close. They want to be able to really insulate their world and create a safe place for their loved ones or friends or their team. And I think that people just realize in these A-plus-plus marketplaces that this kind of land is priceless.

According to Baker, recent in traditionally safe areas like Beverly Hills have made the uber-wealthy even more focused on security, and they see having more land as a buffer. People are really... wigged out. And I think because of social media and TMZ and whatnot, people dont feel safe, says Baker. I think people want to surround themselves with privacy.

The nature of these sales is usually private and off-market, with the property never hitting the MLS. Chances are you know your neighbor or at least you said hello to them before. Sometimes, the conversation starts there, says The Agency.

"People come to me to say, "Hey, he has a pocket listing next to him, so-and-so. Do you think he'll be interested?" So then I reach out. I'm like, "Hey, this is going to come on the market.'

According to Hilton & Hyland's, conversation about next-door agreements in Malibu has increased, but it's nothing new.

If you live on the beach and youre able to secure contiguous homes on contiguous lots, the value compounds, says Mount. This is a trend for quite a while, because if you live on the beach and youre able to secure it on contiguous lots, the value compounds. I had a house for sale on Carbon Beach, where right when I put it on the market, the neighbor walked over and purchased it. It was about a two-week escrow and

Rogers says these sales are relatively effortless because buyers are willing to pay the top dollar. "The only two things that come to mind is literally 'funny money,' he says.

Some buyers purchase neighboring lots simply so that their view won't be obstructed or so they won't ever have to deal with new construction. Rogers says he has a homeowner who bought the lot next door, but it's rent out and uses it as a income property.

A rise in self-contained compounds with multiple structures has led to the trend. Baker said that the extra land for offices, studios, gyms, gardens, and spas has become popular in Los Angeles.

One of our clients, a well-known CEO from the East Coast, is looking for a property to purchase in L.A. for up to $35 million; she is open to purchasing adjacent homes, which she believes will be used for their business meetings and products.

Regulations in the United States are imposing certain restrictions on home-based businesses; for example, commercial activity must not be visible from outside, and only one employee is permitted to live there.

The addition of larger, more valuable estates reduces the median value of surrounding homes, but neighbors' reactions are different. If someone is liked in the neighborhood is buying another piece of land, that doesnt give the opportunity for someone else to move in, great, according to The Agency.

The trend is here to stay, according to analysts. In September, billionaire Nicolas Berggruen purchased the historic Hearst Estate for $61.5 million, and now hes built a 4.5-acre compound. And former Google CEO Eric Schmidt, who recently purchased the historic Barron Hilton estate for $300,000, has a dated home next door for $300,000.

This publication was first published in The Hollywood Reporter magazine on January 26.

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