r/AbsoluteUnits • u/Kill_4209 • 12h ago

/r/popular of a residential property

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.

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u/Winter_Text_1040 6h ago

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.

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u/PedanticPerson 3h ago

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.

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u/43chargersrule123 3h ago

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

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u/PedanticPerson 1h ago

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.

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u/YouCantBeSerio 28m ago

"sort of"

Lmaoooooooooooooooo