If you're thinking about buying a new home, you may be considering purchasing in a new development. How does that compare to purchasing a resale property?
ADVANTAGES OF A NEW BUILD
- New builds are usually located in the suburbs or bedroom communities (suburb of a major urban center where the majority of the residents commute to and from work). That being said, you can find more and more new home builds in city centers where previous buildings or homes have been torn down to make way for new. These are called infill properties.
- You will be the first person to live there!
- Usually, this new area will consist of a community of like-minded people as the development is built with a specific demographic and lifestyle in mind.
- The style of the home will most likely be modern and bright.
- You may be able to make structural and style decisions during the building process (something you cannot do in a resale).
- You may not be able to negotiate the price of the house itself, however you can possibly negotiate upgrades.
- Energy usage in a new build will be more efficient and green because of current standards of energy efficiency.
- You will also not need to budget as much for annual maintenance, as the home is brand new. Usually, any issues or defects are repaired under the home’s warranty.
- New-builds conform to the newest building codes so there are fewer safety and health hazards.
DISADVANTAGES OF A NEW BUILD
- The amenities surrounding your new home may be underdeveloped depending on location.
- Most of the time, new builds are more expensive per square foot and the price is non negotiable.
- You will have to pay extra for any additions or upgrades to the home.
- You may be making big decisions from marketing brochures and floor plans alone.
- You will have to pay 13% HST on the final price.
- If you are one of the first to move into the new community, you will be living in a construction zone for a while.
- There is a chance of the construction schedule being delayed. This would also mean that your move-in date will be pushed back as well.
Some of the advantages of purchasing a resale include a well established community, public transit, roadways, amenities, and schools. You can tour the house before making your final decision and visualize yourself living there. If it is an older house, it most likely has lots of charming characteristics that you would not find in a new-build. If you decide on purchasing a resale, you will be able to negotiate a possession and move-in date that fits your schedule.
The negative sides of purchasing a resale arise mostly in the form of maintenance. Depending on the age of the house and how well it has been cared for, you may need to renovate for safety purposes and/or aesthetic reasons.
Regardless of which way you go, I can help you make the best decision and find the home that’s perfect for you. Call today.