House perks for mega rich Zuckerberg
Mark Zuckerberg is essentially living in his US$5.95m mansion for free, according to a recent article by Business Insider website.
The site claims the Facebook founder and CEO is "borrowing for free" after re-financing his home with a 30-year adjustable-rate loan starting at 1.05%.
The low rate, falling below the current rate of inflation (between 2-3%), allows Zuckerberg to invest cash he previously would have spent on his home in other areas risk-free while also receiving a higher rate of return that which he is currently borrowing at.
While still making monthly payments to the bank, the social network mogul is set to receive all of his money back if he decided to sell the house, and maybe even make a profit in the process.
Business Insider says the reason why Zuckerberg receives a generous rate is because of the "adjustable-rate" nature of the loan, allowing the bank to increase the rate if they wish.
The article follows recent news that Zuckerberg increased his net worth to US$3.5 billion during November last year.
Shares in the social networking site reached nearly $7 per share during the month, rising from $21.08 to $28 by close of play on the final Friday of the month.￼As a result of the growth, Zuckerberg gained around $3.48 billion across his 504 million shares in the company.
Zuckerberg’s net worth currently stands around $14.1 billion and is set to continue growing through out the New Year which could see his place on the world's rich list increase from his current 40th place position.