Inside a laneway suite in Danforth Village that cost only $50,000 to buy

Location: Danforth Village
Price: $50,000 Size: 1,500 square feet Bedrooms: 3 Bathrooms: 2 Parking spots: 2

The Place

A three-bedroom, two-bathroom laneway house in Danforth Village. It’s within walking distance of a half-dozen parks, the 503 streetcar, and the Main Street GO and subway stations. And motorists are a short drive from both Lake Shore East and the DVP.

Related: How one woman built herself a Dovercourt Village laneway suite designed for dance parties

The History

Jayden Haywood grew up in the Beaches and has worked in energy conservation for the past 16 years. As Toronto housing prices soared over the last decade, Haywood would increasingly watch his friends get priced out of the neighbourhood, leaving to start families elsewhere. He wondered about alternative paths to ownership for those who couldn’t qualify for conventional mortgages, let alone carry the monthly costs associated with debt, taxes, maintenance and insurance.

Then in 2020, provincial and federal housing policy shifted, and the city released its Expanding Housing Options in Neighbourhoods initiative to encourage more “missing middle” housing—fewer single-family homes and condo skyscrapers and more low-rise apartments, laneway suites and stacked townhomes. Approvals to build these alternatives happen quickly—as little as six months versus three to four years for condo towers.

Related: $2.2 million for an upside-down Harbord Village home with a rooftop shower

Haywood and a childhood friend founded their company River Developments to take advantage of the policy pivot, using what they like to call an “ownerplex” model: a loophole where residents can buy shares in a limited partnership rather than applying for and carrying a traditional mortgage.

In 2022, River Developments purchased a detached home in Danforth Village and began dividing it into a multiplex to earn rental income. Haywood would then build a brand-new laneway house in its a backyard lot. The future owners of the suite (a young family looking to stay in the east end) would then pay $50,000 for shares, helping to fund the actual build, which began in 2023 and was completed this past April.

Today, the owners are happy in their new home. Their housing costs—about $4,400 a month—cover third-party property management for the multiplex, maintenance and property taxes. That’s roughly $3,000 a month less than the average comparable home. The family also receives rental income from the main-house units as part of their equity deal.

The Tour

Let’s start in the back of the lot. The place’s exterior was clad in doubled-glazed windows and panels that are 40 per cent more energy efficient than the national standard.

Now the foyer. It was important for the owners to have family-friendly spaces like this one to unload strollers and stash winter wear.

The open-concept kitchen and dining area comes with high-end appliances, marble counters, a picture window above the sink and a central island. All of the lighting in the home is also green.

A reverse angle reveals the living space leading to the backyard. Note the hardwood floors and 10-foot ceilings.

This nook looks into the backyard and has more storage.

Heading upstairs highlights the twisting staircase, which makes the property feel more like a traditional detached.

All three bedrooms are roughly the same size, but this one is fashioned with a walk-in closet and an ensuite bathroom, making it the main suite.

Here’s that walk-in, designed with enough room for a couple.

The main ensuite has a double marble vanity and a glass shower.

A peek inside one of the secondary bedrooms (or offices), with a view of the neighbourhood.

Finally, the cozy but mighty backyard with hedges that will soon be tall enough to add some privacy. That’s the original home on the right, now a fourplex, and its funky spiral staircase.

Are you living the laneway life? Send your story to: realestate@torontolife.com.