Working for a builder in new home sales and as a REALTOR® focusing on resale, I always have buyers wondering if they should choose a brand new or an older home. After meeting with countless new home buyers, below are the top reasons why clients choose new builds:
Reason #1 – Hot neighbourhood
You expect the real estate market to go up significantly in your desired neighbourhood.
Reason #2 – Buying two units?
You and your family want to buy two condo units/townhomes/semi/detached homes next to each other for convenience – It’s rare to find two side-by-side resale properties together!
Reason #3 – Expecting a raise
If you are expecting a raise in the next year or two that 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 six months (deposits are usually 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 of having a warranty for up to seven years. In Ontario, most new homes and condos can be covered by warranty programs. Find out what programs are available in your province.
Reason #5 – Less repairs and maintenance
You lack the time or want to avoid having to repair the home. By buying brand new, you don’t have to worry about things like 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 insulation. These features will not only reduce your carbon footprint but will also save on energy costs!
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 to the most up-to-date building and fire codes. 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 architectural styles, layouts, and sizes (setbacks and lot coverage) of a home are subject to city bylaws and requirements, you will have more flexibility buying new compared to a resale home.
Reason #9 – Technological infrastructure
You are tech-savvy. You have specific requirements for the home wiring system to allow the setup of a computer local area network, high speed internet, home entertainment system, or alarm system. Some new condo communities are connected with high speed (or ultra-high speed) fiber-optic networks with the highest internet uploading and downloading speeds to-date, enabling bandwidth-intensive applications like HD video streaming, gaming, and sharing large media files.
Reference: Janis Tsang