This unit is part of Toronto Float Homes, a Scarborough Bluffs community filled with structures built on floating concrete barges that are anchored to the lake bed.

The cost is well below the average price of one-bedrooms in Toronto — it could be the perfect starter home. Here’s why it may not be the easiest to finance.

#GTAHomeHunt is a weekly series from the Star that gets into the details of real estate listings in Toronto and the Greater Toronto Area. Have a tip? Email us at [email protected]

Price: $299,999

Neighbourhood: Scarborough-Cliffcrest

X-factor:

This one-plus-one-bedroom condo townhouse gives a new meaning to “waterfront property” — it’s on the water.

This unit is part of Toronto Float Homes, a Scarborough Bluffs community filled with structures built on floating concrete barges that are anchored to the lake bed. Similar communities exist in California, France, Holland and Italy, but this is one of the only ones in Ontario.

These homes are not to be confused with boats, though. They have no motors, nor are they designed to navigate, according to the community’s website. And while they’re on the water, “float homes share the same luxuries as homes on land,” with heat, electricity, plumbing and insulation.

Listed for $299,999 — hundreds of thousands of dollars below the average price of one-bedroom condos in the city — it could be the perfect starter home for those who aren’t afraid of unconventional housing.

This one-plus-one-bedroom condo townhouse gives a new meaning to "waterfront property" ? it's on the water.

The bedroom in this property sits off of the main living area and features a staricase leading to the upper deck.
The buyer of this float home can enjoy a built-in propane stove, an electric fridge, vinyl flooring, new windows and a fresh paint job.

If you’re a first-time buyer in Toronto, you might be wondering, what’s the catch? We brought in our expert, real estate agent Othneil Litchmore, to gain a better understanding of the listing.

Why is it priced this way?

At least three other float homes are for sale in the community, including a three-bedroom, two-bathroom property with almost 2,400 square feet of indoor and outdoor living space going for $1.3 million.

This unit is priced at $299,999 because it’s significantly smaller than the others at around 500 square feet, Litchmore said.

The buyer can enjoy a built-in propane stove, an electric fridge, vinyl flooring, new windows and a fresh paint job. There’s also a large closet that lines most of one wall, a newly-renovated, bright bathroom with a walk-in shower and a den that could double as a home office.

In the bedroom, a staircase leading to the upper deck features a new pergola with enough room for some outdoor furniture and could be the perfect spot to relax on a warm summer day, overlooking the Bluffs.

But “there are a few caveats here,” Litchmore said. The biggest one? Financing.

It’s a land lease, meaning though you own the structure, you have to lease out the land on which it sits. As a result, the value of homes like these won’t appreciate the same way others do, so it’s often difficult to get a traditional mortgage on these properties.

“If you want to buy this, you would either have to have the cash or be able to borrow against your own home,” he said.

Listing agent Denise Doucet agreed it’s difficult to mortgage this property, and said the buyer will likely need to pay for it in cash or secure funding from a private lender.

“Banks haven’t caught up with the fact this is starting to become a more popular lifestyle choice,” Doucet said, adding some people aren’t looking at their homes as solely an investment.

“People need to buy homes because they want to live in those homes,” Doucet said. “If it goes up in value that’s an added bonus.”

Toronto Island also operates on a land-lease system, but the demand to live there is higher than in the float house community. It has a maxed-out 500-person waiting list for a place there. Since the establishment of that list in 1994, only 70 homes and land leases have been sold, according to the Toronto Island website.

This float home has been on the market for over a month, according to HouseSigma. Another listing for the same property at $335,000 sat on the market for dozens of days earlier this year before it was removed.

“The buyer pool is small,” Litchmore said, which may factor into how long it’s taking to sell. “It’s an unconventional property.”

It may be unconventional, but it’s becoming a more intriguing lifestyle for younger folks, Doucet said. Before the pandemic, the buyers were typically in their 50s or older. Now, it’s skewing to people in their mid-to-late 20s.

The float home has a den that could double as a home office.
In the bedroom, a staircase leading to the upper deck features a new pergola with enough room for some outdoor furniture and could be the perfect spot to relax on a warm summer day, overlooking the Bluffs.

It could also be the perfect property for someone buying a second home or someone looking for a cottage without buying something in cottage country, Litchmore said.

You don’t need to find a new place when the temperature drops, though. Doucet said neighbours often huddle their float homes in the winter months to prevent water from freezing around the homes and to add protection from the wind.

If you’re looking to purchase the float home to use as a short-term rental, you’re out of luck, Doucet said. It would need to be a longer-term situation, say a six-month lease.

Another challenge with the location is transit. There is a seasonal bus route that only runs on the weekends and holidays in the summer months. Without it, the Bluffs and marina are a long walk from TTC and GO transit.

Tips for finding places like this:

These float homes are a rare find in Ontario, so looking for similar properties means looking out of the province — or country — but leased land properties are not uncommon.

What is uncommon is finding a one-bedroom unit for a similar price in the city, Litchmore said, as the average price currently sits around $750,000.

If you’re able to swing a hefty down payment or purchase this unit outright, it may be a deal too good to pass up.

Correction: July 13, 2022 — This story has been updated from a previous version to correct the home’s transit accessibility.

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