Run-down Toronto house asking $5.5M but there are some pretty convincing reasons

There's been a trend going around about "things that are worth the money," and anyone who's gone through a home renovation in Toronto knows having someone else deal with the permits, planning, and all the other soul-crushing paperwork definitely belongs on that list.

Exactly how much that's worth, though, is up for the buyer to decide.

However, there are some decent arguments for that scenario at this Forest Hill South home.

An image of the house in 2020 when it sold. 

The owners of 205 Heath St. W., a century-old home that's been sitting vacant since 2020, have the home valued at $5,490,000.

An image of the interior of the house from a 2025 listing. 

Well, actually, they first thought it was worth $6,588,000 in early 2025. Then they bumped the asking price up to $7,588,000.Now it's back on the market with a considerably lower asking price of $5,490,000.

The backyard in 2025. 

To be fair, you're not just buying a house with a bargain price that's a bit rough around the edges.

A rendering of what a new house could look like. 

You're buying the land, the architectural drawings, the permits, the approvals, and what's essentially a shovel-ready luxury home project.

A photo of the sunroom from a 2025 listing. 

Sitting on a rare 72-by-152-foot south-facing lot, the property had been in the same family for roughly 45 years before selling in 2020.

An image of the bathroom from a 2025 listing. 

Back then, the listing didn't exactly oversell the home.

It described the 1914 residence as being sold "as is, where is," while emphasizing the exceptional lot and the opportunity to build a dream home.

A buyer did exactly that, paying $3,995,000 for the property in 2020.

A picture of the butler's pantry from the 2025 listing. 

But instead of immediately tearing it down, they spent the next several years doing what can often be the most frustrating part of building a custom home in Toronto: navigating the city's approval process.

A photo of a room from a 2025 listing. 

Now they're trying to sell not just the land, but all of that work.

According to the listing, the property comes with paid permits and approvals for an approximately 8,000-square-foot above-grade residence designed by architect Richard Wengle.

Images of what the new interiors might look like. 

The proposed home would also include roughly 4,200 square feet of finished lower-level space, plus a pool cabana, bringing the total finished living area to more than 12,000 square feet.

A picture of the upstairs landing from a 2025 listing. 

The listing says tree permits, hydro and water service approvals have already been secured, along with surveys, architectural plans and other municipal approvals that can often take months—or even years—to obtain.

Essentially, someone has already done much of the bureaucratic heavy lifting that stands between buying a lot and actually breaking ground.

The kitchen photographed for the 2025 listing. 

Of course, buyers aren't required to follow those plans. The existing home could still be renovated, leased, or simply held as a long-term investment while new plans are developed.

Still, it's hard not to notice that the asking price places a pretty significant value on paperwork, especially considering it doesn't include the cost of actually building the house.

A photo of the family room for the 2025 listing. 

Then again, if there's a Toronto neighbourhood where taking that kind of gamble might pay off, Forest Hill is probably it.

Property values in the neighbourhood have climbed roughly 13 per cent over the past year, and detached homes have sold anywhere from just over $1 million to more than $13.5 million.

The back of the house in 2025. 

So for anyone who's ever tried to get a permit through the City of Toronto, that stack of approvals might just be worth a $1.5 million premium.