TMZ

Our TV Shows

Got a Tip?

Call TMZ at (888) 847-9869 or Click Here

Justin Bieber

The Housing Crisis

Is Hurting Me Too!

3/28/2012 5:00 AM PDT BY TMZ STAFF

0327_beiber_house_tmz_compsite_ex
Justin Bieber is suffering the effects of the housing crisis ... just like millions of other homeowners ... because he can't get the mortgage he wants on the house he wants to buy.

TMZ broke the story ... Justin has made an offer on a 9,000 square foot estate in Calabasas, CA ... a ritzy area with gated communities 20 miles from Hollywood. We've learned the hang-up is that the property didn't appraise near the asking price of $7+ million. 

Justin could easily afford to plunk down the asking price, but we're told his business manager has insisted that he take out a mortgage, because it makes good financial sense. But we're told the appraisal has come in significantly under asking -- more than a million under. As a result, Justin can't get the mortgage his business manager wants.

So Justin and the seller are haggling over price, trying figure out if they can agree on a price that will allow the 18-year-old to get a mortgage. We're told Justin is willing to pay $6 mil but the seller is blanching because he sunk way more than that into the property.

It's tough for everyone in these difficult times. Well, not really.

0328_justin_bieber_house_footer

57 COMMENTS

No Avatar
1.

Michael Jackson Was A Pedo    

Rich people problems.

937 days ago
2.

Jessica    

Oh boo hoo. There are people who don't even have homes, people who cannot even afford anything and this little kid is whining that he cannot get a 7 million dollar mortgage on a house he doesnt even need. Donate the money to an organization that needs it and live wisely because when your star fades what will you do?

937 days ago
3.

BigTim    

When is this little kid going to start doing drugs so he can OD and we can be done with him?

937 days ago
4.

merlin99    

here is a suggestion...DON'T BUY IT....rent somewhere
put the 7 mill in an account for when you become a drunk..drug addicted..scammed...broke has been..like 99% of celebs

937 days ago
5.

merlin99    

here's a suggestion..DONT BUY IT.......

937 days ago
6.

bagladey    

$7M and a mortgage? Chris Brown's new Hollywood house cost $1.5M, Wiz Khalifa's new house cost $900,000. Just sayin'.

937 days ago
7.

Thomas    

What does this have to do with the housing crisis?
It happens all the time, not just with expensive houses.

937 days ago
8.

Larry    

He can buy the empty building next door for 2mil+ and build his own house

937 days ago
9.

Stiletto    

Yeah, even though you have the cash now...don't buy it outright. Much better to wind up like Nic Cage and various other has-been sports "stars", music "stars", acting "stars" with 10 homes, 10 mortgages...and sleeping on a friends couch or in your car cause you are broke and having the repossesed or sold for a loss.

937 days ago
10.

tenley    

No, what Bieber is doing is trying to slime the owner as greedy through TMZ to pressure the owner to come down in price -- Bieber is the greedy one. And I'm sorry. Celebrities outright buy their properties because it makes more sense financially than thirty years of interest. TMZ just prints verbatim whatever horse**** slime a celebrity's P.R. team tells them.

937 days ago
11.

lily    

Mortgage? Your not paying cash? Albums aren't doing as good as they use to?

937 days ago
12.

.    

.
It's wiser to get a mortgage at 3% or 4% interest, then invest the $7 million elsewhere that you would've spent purchasing on a house.
.
The return on the investment is usually around 10% & more. You then subtract the mortgage interest rate from your investment return (ex. 10% - 4% = 6%)
.
Between the mortgage & the investment, you still make a profit of 6% on $7 million & the mortgage ends up costing you nothing.
.

937 days ago
13.

tim    

the seller is just being a **** because he knows justin has tons of money. justin should tell him to go kick rocks

937 days ago
14.

RaineeDrops    

Plum stupid to buy a house above appraised value, in my opinion.

Of course a bank would not loan money to ANYTHING, land, house, etc that is valued above a current appraised value.

Bad money managing to purchase something above a present appraised value.

937 days ago
15.

RaineeDrops    

The seller is being an opportunist, too bad it had to be divulged who the buyer was.

That is why the seller is not wanting to budge. Opportunist.

937 days ago
| 1 | 2 | 3 | 4 | Most Recent | Next 15 Comments

Around The Web