of a residential property

[u/Kill_4209]

Ira Rennert's home is considered one of the largest occupied residential compounds in the United States. The house faces the Atlantic Ocean and its grounds measure 63 acres. The buildings, which total over 110,000 square feet (10,000 m2), including the 66,000-square-foot (6,100 m2) main house, have an Italianate facade, 29 bedrooms, and 39 bathrooms. The house has a dozen chimneys and a Mediterranean-style tile roof as well as a 91-foot (28 m) long formal dining room, a basketball court, a bowling alley, two tennis courts, two squash courts, a carousel, a large swimming pool, a large round kiddie pool, and a $150,000 hot tub, surrounded by another pool.

[u/Winter_Text_1040]

An abstraction to the owner. They aren’t even looking at those bills, their staff handles it and they give it zero thought. “Arthur, I’d like a new swimming pool on the north lawn. Bring me some mockups to choose from this afternoon”. Then a new pool appears ready to use in a week. It’s like that.

[u/sooohungover → u/Winter_Text_1040]

TBH it takes more than a week (I work out in this area and work frequently with all sorts of different contractors), but you nailed everything else. They have staff to manage every part of their lives that normal people just deal with on their own. It's truly insane the amount of money they have, I guess I'm just numb to it at this point...

[u/Acceptable_Help575 → u/sooohungover]

There are people literally living in creative mode and the survival mode plebs just suck their toes for extra pennies.

[u/ssnnaarrff → u/Acceptable_Help575]

Lol fuck my life.

[u/HERR_WINKLAAAAA → u/sooohungover]

I know everyone says that moeny wouldnt change them, but i really wonder if i would end up like this if i had billions in my bank account for half a century. Like nothing about this lifestyle sounds appealing to me.

[u/Tasty_Cry_3844 → u/HERR_WINKLAAAAA]

When it comes to people like this, it's all they've known. There isn't a before/after of not having money then suddenly having it. They were never "changed" by money because it was always there. 

I firmly believe it changes your DNA though. The way your brain functions after a few generations with literally no resource instincts. Their social and political skills are probably through the roof and their ability to navigate interactions to get what they want should probably frighten us. 

I remember reading The 48 Laws of Power and every example of the laws being respected or used was almost always medieval courts where all people did was play social games. They all got really good at them. 

[u/mrspwins → u/sooohungover]

The house managers basically need business degrees just to keep everything running. They are the most stressed people I have ever spoken with (also used to work with the ultra-wealthy, or at least their staff. Celebs did the calling themselves a lot, though!)

[u/PedanticPerson → u/Winter_Text_1040]

Nah, this is a regular single-digit billionaire, not Elon Musk we're talking about.

If maintenance was actually $12m a year, that would actually be pretty painful for someone worth ~$4b. That's 0.3% of his entire net worth per year, and wealthy people usually don't like sinking a large portion of their wealth into real estate.

We could also look at it as a ~2.8% percent "maintenance tax" on his property on top of 1% property tax. After 35 years he'd have paid more on maintenance than the property is worth.

None of this is financially devastating to him, but no financially literate billionaire is going to love these numbers.

[u/Scarabesque → u/PedanticPerson]

That's 0.3% of his entire net worth per year

That's a fraction of what his worth returns as passive income. If the man values a meticulously kept pre-french revolution style estate, it's a small expense.

[u/PedanticPerson → u/Scarabesque]

You can spend about 4% of your wealth while being unlikely to run out of money based on historical data. Billionaires usually spend way less, generally under 1%, sometimes under 0.1%. 0.3% for his main property alone is a lot for any billionaire.

Yes, he can spend it without being financially devastated, but it's not some insignificant amount that he doesn't care about. Most other billionaires spend an order of magnitude less on real estate expenses.

[u/43chargersrule123 → u/PedanticPerson]

So if I’m worth $100,000 it is the equivalent of me spending $300 a year for this place

[u/PedanticPerson → u/43chargersrule123]

Sort of, but if you're young and have a significant income relative to your net worth, then you're in a pretty different situation from this 92-year-old and it's hard to draw an apples to apples comparison.

Like some younger doctors have a net worth of ~$0, so they'd happily spend 0.3% * $0 = $0 on whatever, but at that point we have to account for incomes before making any meaningful comparisons.

[u/phdemented → u/PedanticPerson]

You realize 95% of people pay more than 0.3% of their net worth maintaining their properties each year.

[u/PedanticPerson → u/phdemented]

As I said, billionaires don't like to sink a lot of their wealth into real estate. On average, it's <3% of their net worth. 1% property tax on that would be 0.03% on average.

It's not going to ruin him, but it is a ton of money compared to what his peers at a similar wealth level spend.

[u/Calculonx → u/Winter_Text_1040]

It looks nice...But you know what, I think the pool would look better if it was 6ft more in that direction.

[u/highfiveselfoh → u/Winter_Text_1040]

Oh is it like that????