Three-bedroom home in San Fran hits the market for $490,000 – but there’s a big catch
A beautiful three-bedroom home in a desirable San Francisco neighborhood has hit the market for $488,000, less than half of what it’s worth.
But before potential buyers reach for their wallets, there’s a catch.
A new owner may not actually be able to live in the house until 2053 and will not receive much rental income in the meantime.
The home is currently occupied by a sheltered tenant who pays just $416.67 in rent per month and has “possible occupancy rights until 2053.”
Despite the unusual arrangement, there were queues around the corner to view the property and it is already on sale from Sunday.
A beautiful three-bedroom home in a sought-after San Francisco neighborhood has hit the market for $488,000 – less than half of what it’s worth
The house is a fully detached, Edwardian-style single-family home at 30 North View Court in San Francisco’s popular Russian Hill neighborhood.
The low sales price immediately attracted attention, as the property is estimated to generate $3,360 in rent per month, according to the Redfin listing.
But new owners won’t receive anything close to that amount, as there is an existing tenant on a permanent contract paying only $416.67 per month.
They also have an “unconventional method of rent payment,” but the ad doesn’t specify what it is.
The house went up for sale after the last owner of the building died.
“Former male owner, over 100 years old, died of natural causes in the home,” the Redfin listing says.
The house is a fully detached Edwardian style single-family home located at 30 North View Court in San Francisco’s popular Russian Hill neighborhood
The house is currently occupied by a sheltered tenant who pays only $416.67 in rent per month and has ‘possible occupancy rights until 2053’
Local news reported that the current tenant’s son wants to sell the house without her, but this has not been confirmed.
The house could be a good choice for parents who want a safe investment for their young children and are happy to miss out on rental income due to the future sales price.
Compass broker Douglas Lee told The LA Times that the property could be used as a “land bank” by buyers who only need to sell or use the property after the current occupant “dies, vacates, or the lease expires.”
The average sales price for a home in Russian Hill in May was $1.5 million.
The area is highly sought after with parks, Lombard Street and plenty of bars.
The house was only on the market for 13 days before someone made an offer that is now pending.