Jeffrey Epstein’s New York Townhouse to Sell for Roughly US$50 Million

The New York City townhouse of the late financier and convicted sex offender Jeffrey Epstein is in contract to sell for roughly US$50 million, according to two people familiar with the transaction. If the deal closes, the townhouse would be among the most expensive homes to sell in New York over the past year.

The property had been on the market for just seven months, a reasonably quick turnaround for a townhouse with such a high-price tag, especially given the property’s connection to Mr Epstein, these people said. However, it sold at a significant discount to its original asking price; it came on the market for $88 million in July, and the price was later lowered to $65 million.

The property was the most valuable of Mr Epstein’s extensive property portfolio, which also included homes in Paris, New Mexico and Florida. Mr Epstein’s home in Palm Beach is in contract to sell to developer Todd Michael Glaser for an undisclosed sum, The Wall Street Journal reported in November, though the deal hasn’t yet closed.

Listed by Adam Modlin of Modlin Group, the Neoclassical Upper East Side townhouse dates to the 1930s, when it was commissioned by Herbert N. Straus, an heir to the Macy’s department store fortune. It was later used as a school and was formerly owned by Leslie Wexner, the billionaire retail tycoon and a onetime close associate of Mr Epstein.

Mr Epstein paid $20 million for it in 1998, according to a person familiar with the situation.

The house spans about 28,000 square feet across seven floors and has oak entry doors, imported French limestone with carvings, sculptural figures and ornamental ironwork.

Mr Epstein died by suicide in jail in 2019, before he could stand trial on federal sex-trafficking charges. The proceeds of the sale are slated to go to his estate, which has created a compensation fund to adjudicate claims from Mr Epstein’s alleged victims.

Requiring more than 30 percent of household income to service a home loan has long been considered the benchmark for ‘housing stress’. Yet research shows it is becoming the new normal. The 2024 ANZ CoreLogic Housing Affordability Report reveals home loans on only 17 percent of homes are ‘serviceable’ if serviceability is limited to 30 percent of the median national household income.

Based on 40 percent of household income, just 37 percent of properties would be serviceable on a mortgage covering 80 percent of the purchase price. ANZ CoreLogic suggest 40 may be the new 30 when it comes to home loan serviceability. “Looking ahead, there is little prospect for the mortgage serviceability indicator to move back into the 30 percent range any time soon,” says the report.

“This is because the cash rate is not expected to be cut until late 2024, and home values have continued to rise, even amid relatively high interest rate settings.” ANZ CoreLogic estimate that home loan rates would have to fall to about 4.7 percent to bring serviceability under 40 percent.

CoreLogic has broken down the actual household income required to service a home loan on a 6.27 percent interest rate for an 80 percent loan based on current median house and unit values in each capital city. As expected, affordability is worst in the most expensive property market, Sydney.

Sydney

Sydney’s median house price is $1,414,229 and the median unit price is $839,344.

Based on 40 percent serviceability, households need a total income of $211,456 to afford a home loan for a house and $125,499 for a unit. The city’s actual median household income is $120,554.

Melbourne

Melbourne’s median house price is $935,049 and the median apartment price is $612,906.

Based on 40 percent serviceability, households need a total income of $139,809 to afford a home loan for a house and $91,642 for a unit. The city’s actual median household income is $110,324.

Brisbane

Brisbane’s median house price is $909,988 and the median unit price is $587,793.

Based on 40 percent serviceability, households need a total income of $136,062 to afford a home loan for a house and $87,887 for a unit. The city’s actual median household income is $107,243.

Adelaide

Adelaide’s median house price is $785,971 and the median apartment price is $504,799.

Based on 40 percent serviceability, households need a total income of $117,519 to afford a home loan for a house and $75,478 for a unit. The city’s actual median household income is $89,806.

Perth

Perth’s median house price is $735,276 and the median unit price is $495,360.

Based on 40 percent serviceability, households need a total income of $109,939 to afford a home loan for a house and $74,066 for a unit. The city’s actual median household income is $108,057.

Hobart

Hobart’s median house price is $692,951 and the median apartment price is $522,258.

Based on 40 percent serviceability, households need a total income of $103,610 to afford a home loan for a house and $78,088 for a unit. The city’s actual median household income is $89,515.

Darwin

Darwin’s median house price is $573,498 and the median unit price is $367,716.

Based on 40 percent serviceability, households need a total income of $85,750 to afford a home loan for a house and $54,981 for a unit. The city’s actual median household income is $126,193.

Canberra

Canberra’s median house price is $964,136 and the median apartment price is $585,057.

Based on 40 percent serviceability, households need a total income of $144,158 to afford a home loan for a house and $87,478 for a unit. The city’s actual median household income is $137,760.

Jeffrey Epstein’s New York Townhouse to Sell for Roughly US$50 Million

The late financier and convicted sex offender’s Upper East Side home originally asked $88 million.

New research suggests spending 40 percent of household income on loan repayments is the new normal