Mariah Carey‘s lavish lifestyle has come under scrutiny, as reports reveal she has taken out a whopping $18.6 million loan on her Manhattan penthouse, which she originally purchased for $9 million.
A real estate industry financing expert believes the singer may need the advance because her earnings are cyclical.
Mariah Carey’s peak season of financial bliss is around the holidays due to her hit song, “All I Want For Christmas Is You.”
Mariah Carey Borrowed A Massive $18 Million On The Manhattan Penthouse She Bought For $9 Million
According to the Daily Mail, the 55-year-old singer has taken out an $18.6 million loan on her New York City penthouse, of which $10.6 million was in cash advances.
Carey bought the penthouse in June 1999 for $9 million through Franklin Views LLC, a company set up by her business manager.
She bought the penthouse and the apartment below it and combined them. In 2009, she secured a $8 million home loan with JPMorgan Chase Bank.
Carey borrowed another $2.6 million with City National Bank in May 2015 as the company offered bumper loans at low interest to high-end clients.
The singer refinanced her $8 million loan with JPMorgan Chase in August 2016 to $17.6 million and received a $9,622,798 advance. In April 2018, the $17.6 million loan was increased to $18.6 million, with Carey receiving $1,022,478 in advance.
She has now received a total of $18.6 million in loans from JPMorgan Chase and $2.6 million from City National Bank. Carey has yet to pay the $18.6 million but cleared off the smaller amount in October 2016.
Mariah Carey’s Spending Habit Gets Called Into Question
The massive mortgage comes amid whispers of Carey’s expenses, with insiders claiming her monthly spending has ballooned to a staggering $1 million.
According to the Daily Mail, the “Emotions” singer spends an “obscenely expensive” amount on designer clothes, gifts, and champagne.
She allegedly splurges $45k on doggie spa treatments, $100k a month on exotic flowers, and $10k-per-time on hair and makeup.
Carey, who has a $350 million fortune, has also lost money on her asset sales. In May 2023, she offloaded her nine-bedroom mansion in Atlanta for $3.92 million after buying it for $5.65 million in November 2021 – a $1.73 million loss in just 18 months.
The Singer’s Loans May Be As A Result Of Her ‘Cyclical’ Income
Real estate expert Doug Perry believes Carey may need the huge loans because her earnings are cyclical, with royalties typically coming during the holidays with her hit song “All I Want For Christmas Is You.”
“I can surmise that she generates more of her music royalties, endorsements, appearance fees, during the holidays,” Perry told the Daily Mail. “That seems to be the time of year she takes on a larger-than-life presence. If I was underwriting her as a borrower, I would be averaging her income over a multi-year period to account for that.”
“As long as her holiday music continues to play, I am not sure she needs new content to be relevant,” he added.
Mariah Carey Can Still Borrow Money
Perry went further to explain that Carey’s Manhattan Penthouse is worth around $30 million to $35 million, so there’s enough equity for her to keep borrowing money.
“The Tribeca market is up about 350 percent over those 25 years, which puts her property in the $30 to $35 million range,” he explained. “Her property is large and unique, and while not everyone can afford to buy a property at this end of the price range, those that can are willing to pay up for trophy properties.”
The financial advisor continued, “Mariah’s Tribeca apartment, which she created by buying the penthouse and the unit below it, is the definition of a trophy piece of real estate and it has appreciated considerably during the 25 years she has owned it.”
“Mariah has cashed in on the equity created by that appreciation by taking out a series of larger and larger loans,” Perry stated. “She clearly took a bath on the Atlanta property she sold, and [Carey] put a lot of money into that house after she bought it.”
“It could be a sign she needed cash, although she has available credit on the loan on her Tribeca penthouse she could have tapped, so it is more likely she wanted out of the property and was willing to take a large loss,” he added.
The Singer Recently Suffered The Loss Of Her Mother And Sister
Carey’s mother, Patricia, and her estranged sister, Alison, recently passed away on the same day, leaving the singer heartbroken by their deaths.
She shared a statement with People magazine on their demise, saying, “My heart is broken that I’ve lost my mother this past weekend. Sadly, in a tragic turn of events, my sister lost her life on the same day.”
Carey noted that she felt “blessed” that she was able to “spend the last week” with her mother before her passing, adding that she appreciated “everyone’s love and support and respect for my privacy during this impossible time.”
Source Agencies
