The pros and cons of buying a new vs. pre-owned home
In the market for a new home? You may be asking yourself whether it’s better to buy new versus pre-owned. Both options have their pros and cons so you’ll need to do your homework to decide what’s best for you.
Buying from a builder allows homeowners to add personal touches. If you want an upgraded tub in your master bath, you can make it happen for a cost. You’ll also have peace of mind in knowing that your home will be up-to-date with the latest building codes and energy-efficiency standards.
There are also a few financial perks to keep in mind. For example, you won’t have to set aside as much money for maintenance costs because everything will be brand new and covered by the manufacturer’s warranty. Also, if you intend to use the house as your primary residence and the purchase price was less than $450,000, you may qualify for a GST/HST new housing rebate. And finally, your home will be covered by a homebuilder’s warranty as long as you didn’t build the home yourself.
On the opposite side of the new build debate are negatives like having to live in a construction zone for what can in some cases be a long period of time. Also keep in mind that when you tour a builder’s show home, they usually have included every possible upgrade, so if you want any of those high-end extras you’ll need to be prepared to break out the wallet. And don’t forget that you’ll likely need to put aside additional funds for projects like paving your driveway, planting trees, landscaping and adding sod to your property.
Buying a pre-owned home means that you’ll enter into the purchase agreement with a clear picture of what your home will look like. You’ll also likely be moving into an established neighbourhood with all the amenities that you and your family need. The previous owners may have already invested in upgrades to the home like finishing the basement and taking care of fencing and landscaping in the yard. Some financial benefits of buying resale include not having to pay the GST/HST unless the property has undergone a major renovation.
Downsides to buying pre-owned come in the form of renovations that you will either want to make, or repairs that you may have to make. Renovations, no matter how big or small, will cost money and take time, which may mean living through construction for a while.