I am selling almost all physical possessions. Will own no house. After tweeting this on May 2020, Elon Musk sold seven of his magnificent houses located in the eye-popping neighbourhoods of Los Angeles, California. Although he still owns some of the world's finest properties, the business magnate publicly vowed to 'own no house' and lives in a compact house worth $50,000 in Boca Chica, Texas.
Musk’s real estate portfolio is worth knowing about. Despite selling all his beautiful properties, he still believes in owning physical assets to beat inflation. Let’s find out why.
Why did Elon Musk decide to sell his properties?
To be precise, Musk held a real estate portfolio of $137 million. In a recent tweet the tech mogul mentioned that with Tesla’s help, he wants to focus on working towards sustainable energy and Space X’s multi-planetary life project for the future.
He made the conscious decision to leave California in 2021 and focus on the massive electric automobile production complex.
Musk’s real estate portfolio:
- Hillsborough Estate
Sold on- November 2021
Purchase price- $23 million
Selling price- $ 30 million
Musk bought this incredible historic real estate asset in 2017. This estate is 100 years old and is known as Guignécourt. Before Musk, the property was owned by Christian De Guigne IV and was built in 1912.
The Mediterranean-style house stands on a hilltop and is built on a sprawling 19 hectares of land near San Fransisco. It is a 4-storey house consisting of 1 ballroom, 5 bedrooms, a library with fireplace and a flower arranging room. There is a separate staff wing including 6 bedrooms and a pavilion with 18th-century Chinese wallpaper.
The asset was bought by Kirill Evstratov on November 2021.
- Four Bel-Air mansions
Sold on- December 2020
Purchase price- $54.95 million
Selling price- $61.8 million
Elon Musk owned a vast real estate portfolio in Bel-Air, a neighbourhood of Los Angeles. In 2012, he bagged his first purchase in the area, which was a mansion. Surprisingly, it was the same house he rented with his family in 2010. He paid $17 million to purchase this mansion. The entire property spans 20,248 square feet with 7 bedrooms and 13 bathrooms!
Here is a fun fact - this particular mansion resembled the house in one of James Bond classics - ‘Diamonds are forever'!
Next up, in 2015, Musk paid $US20 million for a six-bedroom house on a 1.38-hectare lot in Bel-Air through an LLC. Another Musk-related LLC bought a modest ranch house on an adjacent street for $US4.3 million that year.
Two years later, a different LLC also registered to the SpaceX headquarters address nabbed the neoclassical Colonial next door.
Luxury property developer Ardie Tavangarian bought the four homes from Musk in December 2020.
- Gene Wilder Home
Sold on- October 2020
Purchase price- $6.75 million
Selling price- $7 million
This one has an interesting story behind it! This residence was owned by Gene Wilder for about 30 years. Elon Musk took over the property in 2013. The property was situated just opposite Musk’s main residence. It is believed that Musk did not want to spoil his view, as the property was a beautiful mixture of a ranch house and a guest cottage.
At first, Musk converted the house into a school called Ad Astra for his children and later used it for Musk-style parties. When Musk tweeted about selling this house, Wilder’s Nephew Jordan Walker-Pearlman, immediately reached out to the billionaire’s team about purchasing the home back into the famed late actor’s family.
Musk sold the house to Jordan Walker at $7 Million in exchange for a loan of $6.5 million. This fulfilled Musk’s purpose to sell the house to someone who doesn’t tear down the house and lose its spirit!
- The Boomerang-shaped house
Sold on- August 2019
Purchasing price- $3.7 million
Selling price- $4 million
In 2014, Musk added this house to his list of luxurious properties. This futuristic property was arguably Elon Musk's most contemporary home.
It is a celebration of Californian luxury – complete with floor-to-ceiling windows, an expansive chef's kitchen, and a large saltwater pool and spa overlooking the city.
The eco house also features a dual tank-less hot water system, dual climate zones, and irrigated drought-tolerant landscaping, according to a Forbes report.
Having said that, Musk still advises owning physical assets to beat inflation!
Yes, you read that right. After the inflation spiked in the US in the month of March, Musk tweeted-
“As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products than dollars when inflation is high. I still own & won’t sell my Bitcoin, Ethereum, or Doge FWIW.”
The biggest message that we can take from this tweet is that owning physical assets is the safest investment.
Real estate investments have become more affordable than ever before with REITs, fractional ownership, real estate funds, etc. When you start consistently investing small, you are sure to reap the benefits, especially in an inflationary environment.
So, even Musk has said it! Invest in real estate. What are you waiting for? Head to our investment options and choose from several investment opportunities.
