‘Broke billionaires’ or investing geniuses? Why Beyoncé and Jay-Z took out a second $57M mortgage

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Why fuss with a owe erstwhile you person billions of dollars? Why adjacent capable retired a indebtedness exertion erstwhile you could simply wage currency for immoderate location connected the market?

That’s the question readers mightiness beryllium asking erstwhile they work that Jay-Z and Beyoncé took connected not one, but 2 mortgages connected their $88 cardinal Bel-Air mansion, according to The Daily Mail (1).

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The property is the crown jewel successful their alleged $313-million existent property portfolio — which besides includes a palatial Hamptons home, a sprawling Malibu mansion and a chic New York penthouse.

The mates is reportedly worthy astir $4 billion, yet they secured a $57.8 cardinal owe connected the spot successful 2025 (2). And this was aft locking successful a $52.8 cardinal owe 4 years earlier.

Are the euphony moguls present conscionable broke billionaires, arsenic immoderate online commentators person speculated, oregon is this a savvy existent property move? Here’s a person look.

An outstanding liability of astir $110.6 cardinal connected a azygous spot apt sounds mind-boggling, though that fig is conscionable 2.8% of the couple’s combined wealth.

They person secured reasonably charismatic involvement rates connected some mortgages. According to The Daily Mail, the caller owe from Morgan Stanley’s Private Bank Group had a 30-year word with an involvement complaint fixed astatine 5% for the adjacent 10 years.

The erstwhile mortgage, meanwhile, was secured from Goldman Sachs astatine 3.15%. Both of those rates are notably beneath 2026’s mean 30-year fixed owe complaint of 6.1%, according to the Federal Reserve (3).

Even if their involvement rates were person to the average, their loans would person inactive unlocked immoderate cardinal fiscal benefits for the billionaire couple.

By borrowing wealth against an plus they tin easy afford, Jay-Z and Beyoncé look to beryllium pulling from the “buy, borrow, die” playbook. The strategy involves acquiring appreciating assets similar existent estate, stocks oregon artwork — and borrowing against those assets to make tax-free currency flow. Then they tin walk the assets on to their heirs (Blue Ivy, Rumi and Sir) to perchance erase semipermanent superior gains.