There are advantages and disadvantages to buying both new and resale homes. Here are some of the characteristics that may help you make your choice.
New Home Advantages
- You may be able to upgrade or choose certain items such as siding, finish materials, flooring, cabinets, plumbing and electrical fixtures.
- The latest building code, electrical and energy-efficiency standards will apply. E A builder warranty is usually available in all provinces and the Yukon (but not the Northwest Territories). This can be important if a major system, such as plumbing or heating, breaks down.
- Unless you are a builder, warranties do not apply to homes you build yourself.
Resale Home Advantages
- It will probably be in an established neighbourhood.
- Landscaping is usually done and fencing installed.
- It may have upgrades such as a built-in swimming pool or finished basement.
- There is no GST unless the house has been renovated substantially, and then the tax is applied as if it were a new house.
New Home Disadvantages
- Neighbourhood amenities, like schools or shopping, may not be complete if the house is in a new development.
- There may be construction noise and traffic.
- There may be little to no landscaping or trees.
- The 7% GST applies to new housing. However, there is a rebate, to a maximum of 2.5%, on homes which cost less than $450,000.
Resale Home Disadvantages
- Maintenance costs will likely be higher than for a new house.
- You may require a professional home inspector to check for structural or other problems, such as a leaky basement or faulty roof.
- You may need to redecorate, or even renovate.
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