Tell that to Donald Trump and every wealthy person out there with a real estate portfolio!
I would agree that multi-million dollar mansions are a huge risk as an investment. The pool of buyers is very limited, so millions can be lost when one needs to sell one of those.
It’s all about the land.
When someone purchases a property in Palm Beach, they will tear down the current house and build what they want.
The classic example of what not to do was what Michael Jordan did. He built a huge mansion in an area that wasn’t as desirable from a land perspective, and he wound up selling it at a huge loss.