Having the experience of working as a New Homes Sales Consultant as well as a Realtor in resale, I always have buyers wondering if they should go for brand new or a resale home. After meeting with countless new home buyers, below are the top common reasons that they are buying brand new. Do these situations apply to you?
Reason #1 – Hot neighborhood
You are expecting to real estate market to go up significantly in your desired neighborhood.
Reason #2 – Buying two?
You and your family want to buy 2 condo units/ semi’s/ townhomes/ detached homes next to each other for convenience – it’s rare to find two side-by-side resale properties for sale together!
Reason #3 – Expecting a raise?
Congratulations - You and your partner are expecting a significant raise in the next year or two! If you are expecting a raise in the next year or two which will allow you to afford a mortgage larger than what you can afford right now, buying pre-development might be perfect for you. Typically a low-rise builder will require a 10% deposit within the first 6 months. (Usually, deposits are about 20% in 1-2 years for condos.) After paying off the deposits you won’t have to worry about mortgage payments until the time of closing.
Reason #4 – Warranty
You want the peace of mind in having a warranty for up to 7 years. In Ontario, most new homes and condos are covered by the Tarion New Home Warranty program. Details can be found on http://www.tarion.com/Pages/default.aspx
Reason #5 – Repairs and maintenance
You lack the time or want to avoid having to worry about repairing the home. Buying brand new, you don’t have to worry about things such as installing a new roof or replacing windows for at least 10 years.
Reason #6 – Energy efficiency
You are “green” and want to minimize your carbon footprint. Many new homes are built with energy efficient features, such as “ENERGY STAR” furnaces, appliances, windows and better insulated drywall. These features will not only reduce your carbon footprint but also save you energy costs. Some homes are even solar-panel-ready or come with a rain barrel to collect rainwater for gardening use.
Reason #7 – Fire and electrical
You want the best protection for your family in terms of fire and electrical safety. Brand new homes are built with the most up-to-date building and fire code. These features might save you insurance costs as well!
Reason #8 – Customization
You are looking for a customized layout and specific decorative features for your home. Although architecture styles, layout and sizes (setbacks and lot coverage) of a home are subject to the city by-laws and requirements, you do have more flexibility compare to a resale home.
Reason #9 – Technological infrastructure
You are tech-savvy. You have specific requirement regarding the home wiring system to allow the setup of computer local area network, high speed internet, home entertainment system, alarm system and more, and you want all of these set up hidden.