With a net worth of $153 billion, Amazon.com founder Jeff Bezos could probably buy any home he wanted. But now it’s rented.
Bezos and his fiancee, Lauren Sanchez, are said to be renting a house in Malibu, California, from legendary saxophonist Kenny G for $600,000 a month.
The 5,500-square-foot home includes a huge backyard, pool, screening room, and recording studio. It also houses a 3,500-square-foot guesthouse.
The property gives the couple access to Little Dume Beach, one of the most exclusive beaches in Malibu.
With the rent exceeding half a million dollars per month, you might expect the property to come fully furnished. But that’s not the case here: Kenny G’s stuff is in stock, and the house is decorated with Bezos and Sanchez’s own furniture.
Benefit from higher rents
According to the New York Post, Kenny G purchased the six-bedroom home in 1998 for $12.5 million. Then the musician bought the adjacent plot of land in 2000 and built another home of 3,500 square feet. The construction cost him about $3 million.
And considering that the property brings in $600,000 a month in rent — that’s $7.2 million annually — it’s a very good investment by the musician.
For most Americans who rent, the monthly payment is only about $600,000. But the amount was on the rise.
According to the latest Consumer Price Index (CPI) report, primary residence rent in the US increased by 8.7% in May compared to a year ago. Looking back, you’ll see that the rent for primary housing has increased by almost 60% since 2010.
This upside trend has increased the flow of rental income to landlords.
But it is not easy to be an owner these days. Home prices are high, and higher interest rates mean that buyers have to contend with higher mortgage payments. And when you buy a home, you have to take into account more than the mortgage payments. Homeowners are also on the hook for property taxes, insurance, maintenance, and repairs.
But these days, you don’t need to be a landlord to start collecting rental income. New comp – including one Backed by Bezos Create routes for people Earn passive income in the real estate market. Here’s how to do it Invest in rental properties for at least $100 While staying completely away.
Publicly traded real estate investment trusts (REITs) that focus on residential real estate may also be worth considering. Here’s a look at the three that Wall Street finds attractive.
Mid-America Apartment Communities Inc. (NYSE: MAA): Mid-America Apartment Communities is a real estate investment trust that focuses primarily on residential communities in the high-growth Sun Belt region of the United States. At the end of the first quarter, it had an ownership interest in 101,986 residential units, including communities currently under development. With a quarterly dividend rate of $1.40 per share, the REIT offers an annualized return of 3.6%. Goldman Sachs analyst Chandni Luthra has a Buy rating on Central America and a price target of $180. With the stock trading at $153.25 today, the price target implies a potential upside of 17%.
Avalon Bay Communities Inc. (NYSE: AVB): AvalonBay Communities is an urban-focused condo REIT in areas it believes are characterized by increased employment opportunities in higher-paying sectors and lower housing affordability. These regions include New England, the New York/NJ metro area, the mid-Atlantic region, the Pacific Northwest, and northern and southern California. The stock is up 18% year-to-date, and Truist Securities analyst Michael Lewis sees more upside on the horizon. The analyst has a Buy rating on AvalonBay and a price target of $211 — about 11% above where the stock is today. AvalonBay offers an annual dividend yield of 3.5%.
Camden Property Trust (NYSE:CPT): Camden Property Trust owns, operates, develops and acquires multi-family residential communities. As of April 30, its portfolio consisted of 172 properties with a total of 58,702 apartments. The REIT pays out a quarterly dividend of $1 per share, which translates to an annual return of 3.6%. Barclays analyst Anthony Powell has an overrated rating on Camden stock and a target price of $137, indicating a potential upside of 24%.
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This article Jeff Bezos Pays $600,000 Monthly Rent For This Famous Musician—Here’s How To Raise Rental Income Without Becoming A Landlord originally appeared on Benzinga.com
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