Beyonce and Jay-Z are not caught in a “cash crunch” after buying some expensive real estate in Los Angeles and the Hamptons, despite a new tabloid story. Gossip Cop investigated and the assertion is way off. We’re told of the “99 Problems” Jay-Z and Beyonce might have, money is definitely not one of them.
According to OK!, the power couple is experiencing a “cash crunch” now that they’ve spent $114 million in the past two months on properties on both coasts. The tabloid regurgitates how Beyonce and Jay-Z spent $88 million in August on a tricked-out mansion in L.A., followed not long afterwards by their $26 million purchase of a classic East Hampton home in September. A so-called “source” tells the magazine, “More money is going out than coming in.” The alleged insider notes that their expenses have gone up now that they welcomed twins Rumi and Sir.
The publication cites how Jay-Z’s steaming service Tidal is “struggling,” and quotes its alleged “insider” as saying, “Bey is eager to work less right now, not more.” “Their accountants are warning them to scale back. It’s hard to imagine, but they’re living beyond their means,” adds the supposed.
It’s true that the couple shelled out $114 million on real estate, but they’re far from suffering a “cash crunch.” Additionally, the properties are one-time purchases and, as billionaires, they’re actually not “living beyond their means,” nor is more money “going out than coming in.” In fact, arguably their homes may also prove to be very good investments over time.
Let’s examine the facts. By Forbes‘ estimation, the couple has a combine net worth of nearly $1.2 billion. To buy the home in Los Angeles, Beyonce and Jay-Z took out a mortgage of close to $53 million. And while that is a tremendous mortgage, thanks to low interest rates it currently allows them to use their liquid assets to possibly earn more money as they cover their astronomical monthly mortgage payment of $149,600. Gossip Cop is told that if push came to shove, thanks to Jay-Z and Beyonce’s vast fortune, they can easily pay off the mansion’s mortgage at any point.
And assuming they don’t go on more high-end real estate shopping sprees, which Gossip Cop hears is not happening anytime soon, Beyonce and Jay-Z’s investments and income from various business ventures can more than cover their current expenditures. And in less than two weeks, Jay-Z will kick off his “4:44 Tour” in North America, which will net him tens of millions of dollars.
Regardless, an insider assures Gossip Cop they are aren’t living “beyond their means,” and their cash flow is not an issue. Remember, OK! is the same tabloid that falsely maintained eight months before Rumi and Sir were born that Beyonce and Jay-Z were adopting a baby. And it’s the same outlet that wrongly asserted Jay Z and Beyonce were buying Brad Pitt’s house. Basically, you cannot bank on the magazine for accurate information about the couple’s financials or real estate dealings.
Gossip Cop has determined this story is totally false.