Mariah Carey and James Packer are leasing a luxury home for $250,000 (NZ$387,311) per month.

The newly-engaged couple have rented a mansion in The Oaks, a gated community in Calabasas, California and have taken on the lease "with an option to purchase", according to TMZ.

The pair will be joining the Kardashians and NBA star Chris Paul's exclusive neighbourhood.

The 18,000 square foot house, which took five years to build, includes a sauna, gym and home-movie theatre and sits on one acre of land.

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Despite their celebrity neighbours, the real reason behind choosing the expensive rental was to ensure a safe and family-friendly area for Carey's four-year-old twins, Moroccan and Monroe.

Meanwhile, although both Mariah and James are still legally wed to their estranged spouses, Nick Cannon and Erica Packer, she is already making plans for a huge ceremony in Europe this summer.

A source said: "Mariah is just beyond excited right now.

"She has wanted to be his wife pretty much since they first got together, and has already started to plan what type of wedding she wants to have.

"Mariah wants the wedding to be this coming summer and she said she would really love it if they could get married where they first fell in love, in the Mediterranean region.

"She wants this wedding to be the biggest and most expensive wedding that the world has ever seen!"

And friends of the 'Fantasy' singer - who has four-year-old twins Moroccan and Monroe with Nick - couldn't be happier about her engagement.

The source said: "All of her friends are really happy for her because when Mariah is happy, everyone around her is happy.

"She deserves a man who will treat her like gold and James does better than that. He treats her like platinum."

- Bang! Showbiz