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

Looking to go all-in and purchase a home in Ontario but can’t quite afford the hefty price tag that comes with it? A home that just hit the market in the Greater Toronto and Hamilton Area (GTHA) could be what you’re after -- even if it’s just half a property.

Real estate broker Bob Van de Vrande said he came up with the idea to sell the four-bedroom farmhouse-style home in Lynden, Ont. as two parts after he listed the property back in May for roughly $1.5 million.

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

• Download our app to get local alerts to your device
• Get the latest local updates right to your inbox

“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 bit by doing it jointly with someone else.”

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

So how does it work?

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

86 Lynden Road is seen in this undated image. (Bob Van de Vrande/Apex Results Realty Inc.)

Both parties would get a chance to meet each other before signing off on what’s called a co-ownership agreement drafted by a lawyer, which spells out who is responsible for what aspects of the property, how decisions are made, and -- most importantly -- what happens if one party wants out of the arrangement.

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

As for the types of people he sees living in the home, Van de Vrande said the property is “ideally suited” for two families.

“Two young families perhaps, or two young couples who are looking at having a family.”

86 Lynden Road is seen in this undated image. (Bob Van de Vrande/Apex Results Realty Inc.)

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

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

Because of that, Van de Vrande believes this co-ownership option presents an appealing alternative to those currently renting or thinking of purchasing a more affordable property without sacrificing size.

“It’s a large enough house that you can do that without bouncing off each other,” he said.

• Many Canadians are putting off buying a home in current economy: survey

As for whether he thinks this method of selling real estate will take off in the near future, Van de Vrande believes it will become more common in an expensive 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 a number of different reasons.” 

86 Lynden Road is seen in this undated image. (Bob Van de Vrande/Apex Results Realty Inc.)