Savvy couple buys an entire street of multi-million rand houses for cheap

2017-08-08 15:21
 Photo: Google Maps

Photo: Google Maps

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Buying property is a costly affair.

Taking out a home loan and spending the next several years paying off the debt is a frightening prospect for many couples.

But one savvy couple bought an entire street – which features property up to the value of a few million rand – for just more than R1,1 million rand.

Tina Lam and Michael Cheng are now the proud owners of Presidio Terrace, a street in the affluent neighbourhood of Presidio Heights in San Francisco.

The couple bought the road, pavement and other areas of ‘common ground’ for a cool R1 187 000 after a tax glitch caused the area to be placed on auction.

For 30 years, the governing board of the neighbourhood failed to pay the tax bill of R171 a year.

When the unpaid bill eventually amounted to R13 000, it fell within a legal clause and the road was forced to be put on auction.

Tina and Michael saw the opportunity and made the unusual purchase – and residents are not too happy about it.

"I thought they would reach out to us and invite us in as new neighbours," Michael told The Associated Press.

"This has certainly blown up a lot more than we expected."

To make money off their investment, the couple has made the option available to residents to buy back the property. Another option is to charge residents to park on the road.

"As legal owners of this property, we have a lot of options," Cheng said.


Read more on:    property  |  san francisco

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