Affordable underwater land lots could be the cure for those trying to avoid skyrocketing land, house, and cottage prices.
A Toronto area man who owns at least two parcels of underwater land in Shrewsbury and Wheatley thinks the idea could catch on.
Joe Cher is selling a 19 acre water lot on the shore of Lake Erie at the foot of Brock Street near New Glasgow Line in Shrewsbury for $99,000. That property is zoned as residential and Cher bought it at an auction after the Municipality of Chatham-Kent listed it as surplus land.
Cher is also selling a smaller water lot (154 feet by 75 feet) at 467 1st Concession Line in Wheatley just off McLean Street for the same price -- $99,000. The property was previously owned by the Wheatley Yacht Club for 36 years and is zoned as residential.
Underwater land for sale in Wheatley. Photo via Royal LePage Peifer.
The listings said both properties are currently underwater but have "endless possibilities in the future." Cher said whoever buys the Shrewsbury water lot could turn it into a marina or perhaps have a house boat or a floating cottage moored on it, pending approvals from the Municipality.
Cher claims the trend of floating houses is growing, especially in Toronto where the average price of a home is one million dollars and rising.
"In Toronto they have ten houses that are floating, it's a trend, and the highest price I've seen is they're going for $700,000 depending on where you dock," said Cher. "The prices of land are going up like crazy and if people can access it by water and not pay those land prices it makes sense."
The average price of a waterfront cottage in Ontario is around $500,000 and going up, according to Remax Realty. A small floating house or cottage can cost as little as $200,000.
Cher said he thought there was access by land when he bought the property, but found out later that the entire parcel was covered by water and the only access was by lake.
"You don't have to go to the beach you can just jump from your bedroom into the water," he said. "You can access it through the water, you don't really need land. It's better if you have land access but it's not a must."
Cher, who buys and sells real estate all over Ontario and deals mainly with municipalities, said the property was a marina a long time ago and said it may return to that in five or ten years if the land is not sold by then.
"Not right now because I'm developing other projects but down the road five to ten years... maybe," he added. "Every challenge is like a new opportunity if you turn it into a new opportunity but most people look at it as a challenge."
The real estate agent who listed the Shrewsbury property said the private land was covered by water many years ago when the lake level rose.
Underwater properties for sale are currently uncommon in Canada with very few listings at the moment.
Chatham-Kent Chief Administrative Officer Don Shropshire urges buyers to be aware of what they're purchasing. He's urging full and open disclosure surrounding the condition of the water lots because the lake levels have been very volatile lately.
