Posted by: Karim Ali
Coffee with Karim
What’s Right for You?
Buying a home is a huge decision, and one of the first questions many buyers face is whether to go for a brand-new build or a resale home. Both options come with their own set of perks and challenges. Let’s break down the pros and cons of each so you can make an informed choice for your next home.
Est. reading time: 4-5 mins
Why Choose a New Build?
New builds have a strong appeal, especially if you’re the type of buyer who loves modern features and a home that’s fresh out of the box. Here are some of the reasons why new builds might be the right fit for you:
- Modern Tech and Design: New builds often come with the latest tech and energy-efficient designs. From smart home systems to energy-saving appliances, these homes are built for the future. Plus, you can often choose finishes and upgrades during the build process, allowing you to personalize your space.
- Lower Maintenance Costs: With a new build, everything from the roof to the foundation is brand new, which means fewer repairs in the first several years. No need to worry about replacing an old furnace or fixing leaks for a while—new builds typically have a good few years before any major maintenance comes up.
- Warranties Included: Most new homes come with builder warranties. These warranties range from 1, 2 and 7 years, and cover anything from cosmetic issues for the first 1 year to major structural components during 7 years. This gives you peace of mind knowing that if something goes wrong, you’re likely covered.
- Move-In Ready: There’s a big appeal to the idea of moving into a home that no one has lived in before. It’s clean, modern, and you won’t be dealing with previous owners’ choices or wear and tear. Everything is fresh and designed for modern living.
The Drawbacks of New Builds
Of course, new builds aren’t without their downsides. Here are some of the things to consider:
- Higher Purchase Prices: New builds can come with a premium price tag, particularly in desirable areas. You’re often paying for the privilege of being the first to live there and for all the modern conveniences that come with it. Don’t forget to factor in possible extra costs, like upgrades, landscaping, appliances, and window treatments.
- Construction Quality and Delays: Just because a home is new doesn’t mean it’s problem-free. Issues like water infiltration, poor finishing, or delayed completion dates can cause stress. Be diligent about inspections and document any issues you notice before closing, during your Pre-Delivery Inspection.
- Bare Landscaping and Community: Many new builds come with bare lots that lack mature landscaping. It may take a few years for your home to look and feel complete. Additionally, if you’re one of the first buyers in a new development, you might be living in a construction zone for a while as other homes are built.
- Paying Rent to Builder: If you’re one of the first occupants of the development, you may not start paying a mortgage right away, but instead pay rent to the builder for the first little while. This means you won’t be paying down into equity right away.
- Builder Reputation and Trade Quality: Different builders have varying levels of quality and attention to detail. Research the builder extensively; Richcraft is a known builder in the Ottawa area, but it’s still wise to look at reviews, testimonials, and even talk to residents in their past developments to get a sense of long-term satisfaction. The speed at which some builders complete homes can sometimes compromise craftsmanship. Take note of online forums, and even consider visiting homes from previous phases of the same development to evaluate their condition after some wear and tear.
Why Choose a Resale Home?
Resale homes also have a lot to offer, especially if you’re looking for character, established communities, or a more budget-friendly option. Here’s why resale homes might be a better fit for you:
- Established Neighbourhoods: Resale homes are usually located in more established areas with mature trees, parks, and schools. These neighbourhoods have had time to develop character, which can be a big selling point for buyers looking for a home that feels lived-in and part of a community.
- Potentially Lower Prices: In many cases, resale homes can be more affordable than new builds, especially in areas where new developments are pushing prices higher. Depending on the neighbourhood and market conditions, you might be able to negotiate a better deal with a motivated seller.
- Unique Features and Character: Older homes often have unique architectural features that new builds simply don’t offer. Whether it’s crown moulding, hardwood floors, or a traditional fireplace, these homes can offer a level of charm that new builds lack.
- Room for Renovations: Buying an older home gives you the chance to put your own stamp on it through renovations. If you’re handy or enjoy DIY projects, a resale home offers the opportunity to add value by modernizing or updating various aspects of the home.
The Drawbacks of Resale Homes
Resale homes, however, come with their own set of potential issues. Here are a few to keep in mind:
- Higher Maintenance Costs: With an older home, you’re more likely to face maintenance issues sooner. Things like roofing, plumbing, or electrical systems might need updating, which can add up quickly in terms of costs. This can be exacerbated if you’re buying at a
- Outdated Designs and Layouts: Many resale homes were built with different lifestyles in mind. Closed-off kitchens, smaller bedrooms, and fewer bathrooms are common in older homes. While renovations can fix this, it’s an additional cost to consider.
- Limited Energy Efficiency: Older homes are often less energy-efficient than newer builds. Insulation, windows, and HVAC systems might not meet today’s standards, leading to higher utility bills until upgrades are made.
Making the Right Decision
So, how do you decide between a new build and a resale home? It comes down to what’s most important to you. If you’re looking for modern amenities, energy efficiency, and a low-maintenance lifestyle, a new build is likely your best bet. However, if you value character, community, and possibly getting more house for your money, a resale home might be the way to go.
Take your time to weigh the pros and cons of each option and consider your long-term goals. And remember, whether you go for new or resale, it’s essential to have a thorough home inspection and stay on top of any issues that may arise.
Bonus tips
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Plan for the Future
Whether you’re buying new or resale, think about how the neighbourhood and home will suit your lifestyle in the long run. Consider future growth, nearby amenities, and how your needs might change over time.
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Factor in Resale Potential
Even if this is your dream home, always consider the potential resale value. Homes in good school districts, with access to amenities, and in growing areas tend to hold or increase in value better than homes in less desirable locations.
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