Warren Buffett is selling his beach house about Rs 22 cr cheaper and he will still make a 750% profit
The house, which now costs USD 7.9 million, has six bedrooms, seven bathrooms and was purchased by Buffett for only USD 150,000 in 1971.
Billionaire business magnate Warren Buffett has cut the price of his house at Laguna Beach by nearly USD 3.1 million (Rs 21.7 crore).
A report by Los Angeles Times says that the property was originally listed for about 18 months at a price of USD 11 million. The house, which now costs USD 7.9 million, has six bedrooms, seven bathrooms and was purchased by Buffett for only USD 150,000 in 1971.
Adjusted for annual inflation (at an average of 4.00%), the value of USD 150,000 in 1971 comes out to be USD 929,358 today.
When compared to the present price tag it is still an additional USD 6.97 million - i.e. a 750% return over his initial investment in the property.
The multilevel house was constructed in 1936 and has since been remodelled, providing a view of the ocean from LA’s Emerald Bay area. It has a living space of about 3,600 square feet, a formal dining room, a fireplace in the living room, and a kitchen with a skylight ceiling. There are also two en-suite bedrooms which have separate entrances.
Three ocean-facing terraces and decks are accessible through sliding glass doors and the house’s garages can be combined to fit three cars.
According to a report by Investopedia, the real estate market in the Orange County neighbourhood has become challenging in recent months, with total sales falling 1.4 percent year-on-year in July. But even if Buffett manages to sell the house at the current discounted price, he stands to make a return of over 5,100 percent on his initial investment.
Buffett is one of the richest people in the world, with a net worth close to USD 85 billion, and is the largest shareholder and chairman of the multinational holding company Berkshire Hathaway.