Apparently in an effort to contribute his fair share to the Florida tax base, which includes no state income tax, LeBron James reportedly has “started the paperwork” to buy a home in Miami for $50 million.
(When new, conspicuous wealth attacks)
The Coral Gables home is south of downtown Miami and been on the market for over a year. In June 2009, the CORAL GABLES GAZETTE reported that annual property taxes alone for the home “are estimated at roughly $1 million and utilities will set you back another $150,000 annually.”
That doesn’t factor in a housekeeping staff, landscaping and other steep costs associated with running such an enormous estate.
Just the kind of thing a 25-year-old bachelor who just ‘took his talents to South Beach’ would want, right?
For those of you thinking James is making a poor investment, you must’ve forgotten about the astonishing strength and unyielding resiliency of the South Florida housing market.
Don’t forget that there’s absolutely no way the Heat could flame out in a couple years because of injuries or other factors and James would be stuck with a property of which a tiny number of people would want to buy at his $50 million purchase price. (If any.)
Speaking of that $50 million price tag, the house has changed hands once since it was built in 2000. The owner? Pat Riley! The original owner of the home and land bought it back from Riley and now is selling the estate to James.
In other words, the $50 million valuation is right out of thin air. The actual, tangible value of the estate could be easily be less than half that - and probably is.
Well, at least James can fall back on the billion he is now sure to make thanks to the marketing savvy of the same childhood buddies who no doubt enthusiastically encouraged him to purchase a $50 million home
as their very own party pad.