While the market in Canada continues to grow, everyone is searching for the best deal possible. There are a lot of factors to consider when it comes to buying a home—a big one is if you should purchase an already built home or go for new construction. Here are some factors to consider:
Upfront Cost
This is obviously the biggest factor for anyone when buying a home. Your budget will only allow for a certain price—and this is where older homes win out. They are more affordable per square foot and the price is negotiable, which can be a good thing, but can also work against you if you end up in a bidding war.
New homes are sold at a set price, cost more for less room, and are charged GST and HST (Goods and Services Tax and Harmonized Sales Tax), which will either be charged upfront or added into your mortgage price depending on your builder. There is a partial rebate available on this if your home is valued at less than $450,000 before taxes.
There is also the fact that move in dates are flexible for older homes, while a new construction may face delays, potentially leaving you stranded until it is completed.
Maintenance and Renovation
This is a big one when buying an older home. With new construction, you are in complete control and can build the home up to modern standards to help avoid any potential problems, and avoid the cost of renovations and any serious maintenance for years to come. Also, when the time comes, the repairs will likely be covered under warranty.
But that is also why a new construction will cost you more. It’s up to you to decide if the upfront savings of an older home will be worth it in the long run, once you factor in any potential renovations and upgrades required. Older homes are more likely to have problems with essential parts of the home, such as having to rewire, which can cost a significant amount of money.
Location and Neighbours.
A resale will be in an established neighbourhood with all the amenities you will ever need nearby, and you will know the vibe of the neighbourhood as it is already long established.
New constructions are usually in a suburb that is still growing and establishing itself. You will likely have a longer commute to amenities and may have to wait for roads to be finished and the neighbourhood to be established. Although these communities are usually built with a specific demographic in mind, such as young families, a new community with a completely different target could pop up just down the street.
