Jeff Bezos’ New $165M Beverly Hills Home by the Numbers: $700K in Taxes with a Theoretical Mortgage of $575K per Month
At $165M, Jeff Bezos’ purchase of the Geffon Mansion shattered California’s home sale price record this year. But while that home price tag carries a stunning sum, it’s not exactly a stretch for the current richest person in the world. Still, we had a few questions with a sale price this large, some of which are only theoretical (but fun to think about!). We found ourselves asking questions like: What would the taxes and insurance be like on $165M? And, while we assume Mr. Bezos paid cash for the property, what would a mortgage even look like on a mansion of this valuation?
Here’s the quick math:
- $59M is the assessed value for the LA County home in 2019
(this number is used to calculate taxes & insurance)
- $705,446 in property taxes in 2019
- $107,351 per year to insure
- A monthly theoretical mortgage of $606K (that’s $165M less 20% down at 3.5% APR)
A theoretical mortgage on $165M
Anyone who has purchased a home knows that securing your mortgage is one of the more complicated aspects of purchasing real estate. We’re relatively certain that Bezos did not need a bank’s financial help in purchasing his home, but let’s play with the idea for a moment anyway.
Most folks put down 20% on their mortgage, which would mean there would be $135M left to be financed. At today’s interest rates for a 30-year mortgage (about 3.5% APR on average), this would mean that Jeff’s mortgage would come to about $606,000 per month, give or take a few hundred bucks. That’s the equivalent of 382 average U.S. mortgages (at $1,500 per month) and about the cost of buying a home outright in San Diego, CA.
Taxes on the Jeff Bezos’ Mansion
Figuring out what the taxes would be on this mansion is much more straightforward than our theoretical mortgage estimate. Counties assess properties regularly and tax them based on their “assessed value.” This is generally more about the structures on the property and is usually lower than your home’s “market value” — or what it actually was purchased for. That’s a good thing because it means your taxes will be lower.
The assessed value on this home in 2019 was about $60M, and the taxes on that amount were $705,446 last year. That’s about $60K per month, whether you have a mortgage or not.
Home insurance on $59M of assessed value
A home of this price point would likely get a tailored side-deal insurance plan from a major company. Normally, though, coverage costs anywhere $0.14 to $0.20 per $100 of assessed value. That means it would cost $107K per year or about $9K per month to insure.
Methodology, sources & limitations
While we stand by the calculations above, some of them are absolutely theoretical in nature and don’t represent what Mr. Bezos is actually paying. Most of the numbers used above are a matter of public record (such as the amount for taxes paid in 2019). Here are some of the tools and sources we used to arrive at the above numbers: