Ontario house on sale as two halves. Here’s how to buy a piece

Want to go all out and buy a home in Ontario but can’t afford the high price that comes with it? A home that just hit the market in the Greater Toronto and Hamilton (GTHA) area might be what you’re looking for — even if it’s only half a property.

Real estate agent Bob Van de Vrande said he had the idea of ​​selling the four-bedroom cottage-style home in Lynden, Ontario. as two parts after listing the property for around $1.5 million in May.

“We haven’t gotten enough interest,” Van de Vrande told CTV News Toronto by phone on Saturday, citing an ever-changing housing market and high interest rates as the main reasons for the cool reception.

“I thought maybe there are people who are looking in the 600s (thousands) or 700s and would be interested, but they have to sacrifice a little bit by doing it with someone else.”

And while the concept of co-owning a home isn’t a new phenomenon in expensive markets, properties aren’t typically listed as halves.

How does it work?

In the case of 86 Lynden Road, the first buyer would pay $648,000 for 50 percent ownership of the home, while the second buyer would pay for the other half.

Both parties would be given the opportunity to meet before signing what is known as a co-ownership agreement, drafted by a lawyer that would set out who is responsible for which aspects of the property, how decisions will be made and – most importantly – – what happens when one party wants out of the agreement.

“It’s basically a marriage contract for joint buyers,” explained Van de Vrande.

Referring to the kind of people he sees living in the house, Van de Vrande said the property is “ideally suited” for two families.

“Maybe two young families or two young couples looking to start a family.”

According to the latest September data from the Toronto Region Real Estate Board (TRREB), the median resale price for all property types was $1,086,762.

That’s down from the average $1,135,027 in September last year, but still out of reach for many first-time homebuyers.

For this reason, Van de Vrande believes this co-ownership option presents an attractive alternative for those who are currently looking to rent or buy a cheaper property while sacrificing size.

“The house is big enough that you can do that without bouncing off each other,” he said.

Whether he thinks this method of selling property will become more important in the near future, Van de Vrande believes it will become more common in a pricey market like the GTHA, but will not become “the new thing”.

“I think for some buyers it will be the ideal way to do it. But I still don’t think it will appeal to the majority of buyers, for various reasons.”