The city where buying an entire street will get you cheaper rather than a house

Economy Nilgun Salim
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The fact that San Francisco is one of the most expensive places when it comes to real estate it’s not exactly a secret.

An average and not-so-luxurious place in this American city it will probably cost around $1 million, writes Quartz,

However, most financial advisors claim that acquiring an entire street in San Francisco will cost a lot less than a home buying transaction.

How is that even possible?

Tina Lam and Miachael Cheng just purchased the Presidio Terrace, a residential street situated in a rich neighborhood and they only paid up $90.000 after they won the auction in April 2015.

The auction took place after the Presidio Terrace Association who owned and operated the public spaces (the sidewalks, the street), did not pay the annual property taxes since 1905 despite the fact the fee was less than $14 per year.

According to the lawyer of the association, the tax was not paid because the request was sent to the wrong address.

Now Lam and Cheng are thinking about making a profit from their investment by renting the 120 parking spaces on the street.

San Francisco housing prices have exploded in recent years thanks to the tech companies from the area, and now the average price of a house is $1.2 million, according to Zillow data and the rent is $4350 a month.

However, a house on the street bought by the two is worth more than $5 million.