If you're thinking about moving, you may be weighing purchasing a new build versus a resale. For a rundown of the pros and cons of each, read on. If you're thinking about moving, you may be weighing purchasing a new build versus a resale. For a rundown of the pros and cons of each, read on.
New Build Pros
-Brand-new condition
-Can customize features
-Most are covered under warranty for the first few years
Often built with the latest energy-efficient features, saving you money on utility bills
Typically pay less in maintenance fees
New Build Cons
-Lot, floorplan, and views can change during construction
-Construction delays are common, leaving you at the mercy of whatever the interest rates are when construction is complete and your move-in date in limbo
-The amenities, school, and sense of community can be unknown for some time after construction is complete since housing takes priority in new neighbourhoods
With no market history, it’s more of a gamble on what will happen with your investment
Resale Pros
-What you see is what you get (you can get a sense of the neighbourhood, the amenities, and schools before you buy)
-Closing date is fixed
-You know your mortgage rate before you buy
-You can research how the property has appreciated over time, giving a better sense of how your investment will do
Resale Cons
-Not brand-new
-Have to renovate if you want specific features
-Not usually covered under warranty, unless it’s a newer resale home with existing coverage
-Usually less energy-efficient
-Typically higher maintenance costs
Ultimately, the decision between buying a new build or resale home will come down to your needs and wants, your risk tolerance, and of course your budget.
Posted by Billy Peshke on
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