John Paulson, the hedge-fund manager who scored billions betting against subprime mortgages in 2008, has just purchased the biggest house in the neighborhood.

For $49 million, he gets the palatial Aspen home of Saudi Prince Bandar bin Sultan and his wife, Princess Haifa.


What really makes this house a steal for Mr. Paulson is that after it was completed in 1991, Pitkin County officials put restrictions on the size of all new homes.

This means that no billionaire can ever have an Aspen home as big as Mr. Paulson's, unless, of course, one of them wants to buy it from Mr. Paulson.

That's why I would bet Mr. Paulson will one day unload this house for twice the price.

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