The REAL Cost Of Owning a Luxury Mansion!

This week, we're looking at an amazing new-build in Encino, and asking the question what does it take to afford a house like this? Although many of these types of homes are bought by cash buyers, mortgaging is still an option, and we go through the options available currently, as well as shedding some light into what it costs to run a home like this.

Do you have any more questions about luxury home ownership? Post them down in the comments and we'll do our best to answer them in future episodes...

Property address:
17228 Otsego St
Encino, CA 91316

Offered by Danielle Peretz
Tel. [phone]

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FOLLOW:

Chapters:

00:00 - Introduction
01:10 - Location
01:30 - Formal living room
01:55 - Guest bedroom and office
02:26 - Living space
02:50 - So let's talk about mortgages
05:57 - Kitchen
07:17 - Catering kitchen and pantry
08:09 - Garage
08:30 - How much do you need to earn to afford this home?
09:55 - Producer Michael's energy bill
11:10 - Outdoor area
13:35 - Lower level
14:55 - Home theater
15:55 - Ping pong - Michael vs Adam
17:04 - Gym
17:45 - Storage and server room
19:00 - Michael and Adam's thoughts on the economy
21:08 - iPhone sim car removal tool light fixture
22:22 - Bedroom 2
22:53 - Bedroom 3
23:37 - Bedroom 4
24:48 - Master suite
26:45 - Summary

#mansion #realestate #luxury

[woody]

I was waiting for a lot of topics you didn't discuss here. 1: Taxes, what does it cost to buy, and to upkeep a house like this just in taxes. 2: Staff. do you need one for this size? or just have a cleaning team come 1x /week? How do you get a chef? You pay one full time, or are there services where they visit you x times a week if you want? 3: How much does staff cost if you need staff? How much is to take care of the garden, the pool, and even to keep this house clean? 4: Is there a service charge if there's a gated community for security, if yes, how much is it usually? 5: do you need insurance on the house, ? 6: cars, how much is to own a luxury car, taxes, insurace, in Calirfornia? ... I'd love to hear from these :)

[ReneAlexisPenalozaMunoz]

I do respect the realtors that join you guys to visit mansions and big houses but....nothing beats when only the two of you are exploring these beautiful properties. You do it in such a way anybody can dream of living in those spaces. Surely is the language, humour and vibe you two input on the videos. Great video as always.

[marklammers]

when i see this video i am so happy to be in the Netherlands. My intrest rates is 1.3%. My electrtic bill is 0 because off solar power. And insurence is 50 Euro per month for a house off 500k. My total cost per month is 600 euro about ( 700 dollar ) for everything incl. Nexflix, internet, gas, water etc. And bought the house last year. And with a salery off 80 k a year it is fine living!

[williamwright]

Although I enjoy your house tours immensely, I also appreciate your sensitivity for the cost and realities of purchasing one of these beautiful homes. I like nice things as well, but I've never felt more connected to you guys as fellow humans. What a superb blend of luxury and reality you've presented here.

[GrizzlyCompany]

$7.5 million house with interest will cost you $17.2 million when all is said and done. Absolutely disgusting.

[JustaPairofPants]

I appreciate you guys being real and talking about the monthly cost as well as the current state of the economy. It would feel very disingenuous to ignore the current interest rates in a video like this. My wife had to leave real estate because the market it terrible right now. Hopefully everything will turn around soon. Merry Christmas.

[michellep]

We are not even close to having the highest interest rates or worst economy in US history. 2007-2009 rates were low but the housing prices collapsed. So many foreclosures and short sales. People couldn't take advantage of the low rates because they didn't have an equity to refinance. In the 1980's interest rates capped at over 18%. They came down by the end of the decade but still hovered around 10%. I've been in real estate industry (escrow) since the late 80's. 2007-2009 was way worse. Oh and love the GO watch. I have the same but on the brown nubuck strap

[stockey]

There's a Mansion tax too, for houses over 12M i think, and you forget city taxes, insurances and maintenance of the house and yard, those houses are money pits.

[k.y.]

You started the explanation of what it costs for this house, but didn't finish. Can you just do a sit-down talk about all the other expenses of a typical house of this size? Internet access, water, sewer, utilities, insurance, various cleaning services and yard maintenance services, what you need to plan on to pay for things breaking down, security, if you have it, HOA if any, anthing you can think of. Maybe even get actual quotes for these services. That would tell the whole story.

[darylh]

Although he did give you an indication of what your mortgage payment would be per month, there are other important costs such as property taxes, HOA fees, insurance, utilities, and staff wages to maintain this luxury mansion.

[davep]

.The economy is super strong right now.Record high employment, strong retail and real estate.The wealthy are doing fine.
Cost of living is absurdly high all over the Western world.I just wonder how long the lower income workforce can afford to live and work in the area of their respective industries.Will a dishwasher commute 45 miles to make $17/hr?

[enrriquesantander]

I love seeing these videos and how amazing and respectful Michael is making everyone feeling rich with its humble educated and respectful charm and not just seeing Adam as an employee but actually seeing and respecting appreciating him and enjoying being there with him as just another millionaire person around him not as someone who just gets paid to film him and around, I wish there was more people like you Michael and Adam you’re a very lucky person to be around him Great Job in life both of you👍🏻👍🏻😊

[lifeofdazz]

Hope everyone had a wonderful Christmas and happy new year all 🤶🎄

[MrSeebsy]

Great video, Londoner here who paid his NJ home off in 15 yrs. The painful part you never mentioned & that nobody is taught at The 1st decade of a 30yr mortgage, You are basically the Banks The Interest/ Principle split on the minimum payment is like 99/1. & every time you do re-fi you reset that 30yr clock so you just reset that part of the curve I call the take it up the ### part. Happy New Year Lads.

[richardpeters]

Questions for

> Does he visit family in England ?
> Do his family visit him ?
> As a rich man, does he buy houses for family ?
> Is he an American citizen now ?
> Does he have houses in other coutries ?
> Does he keep his British passport
> Does he have staff ? How many ?

Just silly questions that people are interested in Michael.

[radomiriz]

I've been following you guys for 3 years now, and I think I've watched every video. The journey has been fabulous, thank you very much.

[thoth]

Truly Appreciate Both of You .
Thanks.
Truly inspiring, not just the wealth, but how you both come across.
Great personalities, down to earth and the amount of mutual respect is refreshing.
All the ingredients for a successful life.

[bryduhbikeguy]

Thank you both for another year of great videos. With so many awesome homes, cars, and watches episodes it must be difficult to schedule everything and still deal with your personal lives. I appreciate all that you do and wish you a very Happy New Year.

[davyhamadani]

Mortgages are my specialty in my 25 years of working in a bank for mortgages.. super mansions like the one you show the Loan to Value is around 50% to around 60% banks don't take the same risk as a regular home. an expensive home i say a house between 3 to 5 mill and in that case it would be 30% to 40% down anything above that 5 mill it should be around 50% down.. i did a few of them in my career. people who can afford a house like that the mortgage you get has to do with tax breaks.. what usually happen is they buy the house cash and then them they go get their mortgage to recoop some of their funds they shelled out. and usually the rates for houses like that are rather complicated it most of the time of an adjustable rate that is custom made for the individual borrower.

[justamom]

Thank you for explaining the financial expenses for owning a home like this. It's so easy to get blinded by the size and the beautiful views. It's good to be educated in how much they really cost. I still gotta have my little mansion on the beach though, I will just have to cut back on frivolous shopping.