What’s the Helicopter House Worth Today?

This video critically reviews a mansion tour, specifically focusing on the "helicopter house," to determine its current worth. The property boasts 21 bathrooms, 12 bedrooms, and 38,000 square feet, initially including a helicopter (though it lacked an engine and has since been removed). The location is described as prestigious, in Lower Bel Air, but not the absolute best part, with a challenging, narrow, and tight driveway that doesn't offer an ideal approach to the facade. The house is "upside down," meaning entry is at the rooftop level. There's also a second driveway providing garage access from a street below. A comparison between yachts and homes is presented, with the argument that yachts depreciate significantly over time, while residential real estate in areas like the Platinum Triangle (Bel Air, Beverly Hills, Holmby Hills) has historically outpaced the Dow Jones and S&P 500. However, the video's narrator counters this, stating that yachts can be strategically purchased for tax liability offsets, which isn't possible with primary residences. He also doubts that a property purchased in 2008 and sold in 2018 would have outperformed the S&P 500, suggesting that while he's a real estate fan, there are likely pockets of time where this isn't true. The house initially came with seven staff members, including a driver, chef, masseuse, and physical trainer. A significant negative point is the heavily sloped lot; entering at the rooftop requires 20 steps to reach the front door, and even then, the main living space is not level with the backyard, necessitating more stairs. This is presented as a major drawback compared to flat lots found in better locations. Specific features of the house are critiqued, such as a black quartz crystal piece claimed to be worth €250,000, which the narrator dismisses as "BS," questioning the cost of its stainless steel setting and demanding a receipt for the rock. He notes the common real estate agent tactic of using vague terms like "probably" or "perhaps" when quoting high values to protect themselves. Another feature is Louis Vuitton-inspired furniture made from honey onyx, which the narrator believes was effective in targeting the intended demographic. He explains that the property was never meant for "old money" but rather for recently divorced older men, new bachelors who sold their companies, or royal families from Gulf countries seeking flashy, over-the-top finishes. He acknowledges that the developer did a good job of identifying this target demographic and tailoring the art, car collection, and overall design to create a "white box modern party house." While he doesn't believe the custom pieces cost as much as claimed, he respects the effort to create bespoke designs for this specific market. The property's sale history is highlighted: it sold for $94 million in 2019 after being initially listed for $250 million and undergoing numerous price reductions, taking almost three years to sell. The narrator claims that the agent's assertion about property appreciation in the Platinum Triangle outperforming the S&P 500 is incorrect in this case. Unique elements like a "swim-around jacuzzi" and a Birkin bag carved from honey onyx are mentioned as examples of the bespoke, "steroided up" finishes that were rare at the time of completion (2016-2017). The house was built on a "crappy lot" purchased for $7 million, with the strategy to "go all out on finishes and distractions" to justify the high selling price. The grand staircase, claimed to have taken two years to build and cost around $2 million, is also questioned, with the narrator expressing skepticism about the construction timeline and the quoted price, again noting the use of "probably around" to avoid definitive statements. He dismisses the idea that the entire company's order book would be put aside for two years for a single staircase. Other features include champagne fire extinguishers (which the narrator finds "cool" and respects as a custom design for the demographic), a wine cellar, and a state-of-the-art Dolby Atmos theater with a Christie D cinema projector, which was considered one of the best residential theaters at the time. Ultimately, the narrator provides a comparative analysis using a recently renovated Muhammad Hadid property that sold for $110 million. This property had a better, flatter lot, superior downtown LA views, and potentially more square footage. Given that the helicopter house sold for $94 million in 2019 and Los Angeles residential real estate has appreciated by about 54% since then, it "technically should be worth somewhere around $140 million." However, he argues it's not, stating that the finishes now show their age, the concept has been replicated, and cooler homes exist. He estimates the current value to be between $55 million and $60 million. The key takeaway is that the property neglected the importance of buying the right piece of land. While finishes depreciate, land value appreciates. The developer prioritized expensive, depreciating materials and finishes over a prime, appreciating lot, leading to a significant loss in value compared to its initial sale price.