MARIAH CAREY and NICK CANNON are celebrating their first wedding anniversary with a new home - they've splashed out a reported US$7 million on FARRAH FAWCETT's former mansion.

The pop pair has been hunting for the perfect California estate for the last few months, and they reportedly put in an offer to buy one of Los Angeles' most prestigious homes, the Saperstein Estate in Holmby Hills, in March.

But the couple, who celebrated one year of marriage on 30 April, has now settled on a smaller property - a five bedroom, eight bathroom home in Bel Air.

According to RealEstalker.com, Mariah and Nick bought the house in early April from music engineer/producer Allen Sides, who had previously purchased it from the Charlie's Angels star.

And the lovebirds have scooped a bargain at US$7 million - the website claims the mansion was initially put on the market with an asking price of $9.5 million.

The couple already has designs on what the new home will look like - Cannon and Carey spent almost US$300,000 on furniture at trendy Los Angeles store Kreiss in February and reports suggest the pair has hired designer to the stars Kenneth Bordewick to help them style the property.