What to Buy? New or Resale?

Fewer housing questions are as hotly debated as whether a newly constructed (or pre-construction) property or a resale is the better option. And the truth is, it depends on what your individual preferences are.

 

 

 

 

 

 

 

 

The pros to buying a new or pre-construction home are:

• Move in ready. The big plus about buying a new home is that you can generally customize it with your own choice of colours and finishes (based on the builders selection of course, and beware of “premium” choices that will add up quickly!) meaning that you won’t need to do any work before moving in. 
• Maintenance Free. Your new home should not need any major repairs or replacements for the first few years. And the Tarion New Home Warranty program provides insurance for major construction defects such as problems with foundations.  
• Modern. New home are built to modern standards in both of design (modern finishes, en-suites and walk in closets) and infrastructure (wiring for cable, Internet, security systems built in).

The pros to buying a resale home are:

• Lots and location. Generally speaking older homes are built on more spacious lots than new homes. And older homes tend to be found in well-established neighbourhoods close to existing schools and amenities. Many new communities are built outside of the city core where vacant land is available. It takes a number of years for these new communities to mature once the construction is complete.
• Cost. Resale homes generally have a price advantage over a new build. One significant cost advantage is that GST is not collected on a resale property but is payable on a new home.

There are two schools of thought as to whether new or re-sale construction is better. To some, older homes were built to last with sturdy materials and pride of workmanship.  To others, the advances in materials and energy efficiency make new home construction their preferred choice.

If you do choose to buy a new construction home, choose a reputable builder. Each year J.D. Power conducts a survey of customer satisfaction with home builders in the GTA. This publication is a good source of information on which builders to avoid.