Jorik Scholten, better known by his stage name Lil Kleine, bought a ground-floor duplex apartment in Amsterdam’s Prinsengracht in the spring of 2019. On Monday, Patti Braard – whispered by the rapper’s friends – reported on Shownieuws that the house is for sale.
A CSV Makelaars employee who oversaw the sale of the home in 2019 initially confirmed that he would be making the sale again. However, when asked about the asking price, the connection was dropped. Later, another employee said it was a misunderstanding, and that the office was overseeing the sale of a house on the other side of the canal.
The rapper’s manager, Nathan Moskowitz, and his spokesperson did not respond to questions.
Explosion house prices
When sold, the house can bring in a rapper much more than he paid for three years ago thanks to the recent explosion in house prices. Data from the Land Registry shows that he paid 2.35 million euros for it at the time.
According to data from Makelaars Vereniging Amsterdam, house prices in the center of the capital rose by 27 percent between the second quarter of 2019 and the end of 2021. This means that the house will now be around 3 million euros, a profit of nearly 700,000 euros.
Real estate agent Leslie de Ruyter of Christie’s International Real Estate in Amsterdam thinks the house could make more in the current market. “Assuming it finished well, I now put the value at around €3.4 million. The low basement lowers the value, but the indoor garage makes up for a lot.”
This would make the house a million more than the rap artist paid three years ago.
This is good news for Schulten, because after a series of trading setbacks, he could use unexpected financial gains. For example, his clothing line Jorik and the youth brand New Wave, which he started with the media company Talpa van Jon de Mol, failed.
In addition, as a result of Corona’s actions, he has not had any income from shows in recent years. After he was arrested on suspicion of severe assault on his girlfriend, his business partners and record label Sony cut their collaboration with the artist, and the shows were cancelled.
No million surplus
However, the rapper probably won’t be able to put the $1 million in capital into his pocket when selling his house. Data from the Land Registry shows that there are two types of mortgages on the property well above the purchase price at that time.
In the first place, ABN Amro provided a loan of 2 million euros. In addition, the rapper borrowed 800,000 from his own company Kleine Moeite BV. In total, there was a debt of 2.8 million euros on the house.
This means that the artist borrowed almost half a million euros more than the cost of the house. The difference may be partly due to additional costs such as transfer tax, broker and costly renewal.
Schulten owned the house, which was newly delivered by a real estate developer, and was completely renovated at the time and adapted to his own style.
The rapper said this in an interview with docuserie Joriks Life, as he led the viewer through the house. “When I bought it, it was already completed, and it was delivered really beautifully,” he said. “I just wanted it to be different. They spent a year on it.”
The house also got a nanny’s room, a home cinema, several fitted wardrobes, and precious Moroccan stucco and onyx stone finishes in the kitchen and bathroom.
No increase in value
Since the costly renovation gave the home a more luxurious appearance, but without additional space or architectural improvements, the question is whether the home became more valuable as a result.
Christie’s Real Estate broker De Ruiter points out that not all renovations add value. “Of course this applies to the extra square meters or if you replace an old, ugly kitchen with a new Samix or pothole. But if you replace a new, modern kitchen with something to your taste, it is usually a waste of capital. You do it because you think it is better, but then you have to write off those costs.
6 tons property rights
If the house was actually sold for 3.4 million euros and assuming that not much has been paid off on mortgage loans in recent years, there would still be a surplus of 6 tons instead of 1 million.
This is a good gain, but on the other hand, Schulten and his family will have to find one or two new homes.