Niamh Shackleton
A property expert has revealed how much Kanye West could have made on his Malibu mansion had he not made it 'unliveable'.
The 'Bound 2' rapper purchased the beach-front home in question back in 2021 for an eye-watering $57 million.
But this is arguably pocket change for West, who once graced Forbes' billionaires list.
After falling out with Adidas and losing his partnership with the brand, it's believed his net worth is now around $400 million.
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Arguably the key to staying rich is by making some good investments, and it turns out West's Malibu property was far from that for him.
The 47-year-old listed the home earlier this year for $53 million - more than $4 million less than he bought it for.
However, as a result of the state it was in after West started to renovate the mansion but failed to finish it, this had to be further dropped to just $39 million. But even that was still optimistic.
Eventually the home was sold for $21 million, meaning the rapper took a $36 million loss on it.
As to how much West could have made had he not made 'dumb' alterations to it, it could have been substantially more than what he first paid.
Speaking to UNILAD, Joshua Houston, property expert at Household Quotes, explained that people don't always make money on their homes, but West could have easily done so.
"It's a common myth that renovating a property will automatically increase its value," he said.
"Ultimately a property is only worth what someone is willing to pay. If a home has an unusual design, buyers will be put off as they know it will require more money and time to get it up to scratch.
"So it is hard to say what the value of Kanye West's former home would've been had he completed the renovation work.
"It is predicted however that in 2024, house prices will increase by 6.2 percent in Malibu. Now, if we do a rough estimate and assume the property would've increased in value by 18 percent in those three years, the property he bought for $57.3 million, would now be worth over $67.5 million."
Despite the home being left in quite a state, Houston still hailed it as a 'sound investment'.
Houston explained: "Given the property has been purchased by an investment company, they must be confident that it is repairable.
"The investors having to put in $5 million suggests that there's quite a bit of work that needs to be done.
"But given the value of similar properties in the area, and the recent increases in property value, this seems like a sound investment."
As to why West got so little for the mansion, Houston went on to say: "The reason they got it for just $21 million is down to what's been reported about the condition of the property. It currently isn't liveable, given its lack of plumbing and having been gutted from the inside.
"This does mean, however, that the new owners can easily add a style that would be popular with buyers."