Posted by genieSABRE on Sep 24, 2011
New Home vs Resale Home

New Home vs Resale Home

What You Need To Know!

 
Source: Hannif Highclass
Publish:My Blog: 09/20/2011

When people are in the market to purchase a home some will only consider new construction while others may prefer an existing home. Are there benefits to buying new versus resale? You may be wondering whether it really matters.

The choice that’s right for you depends on many things: your finances, your family composition and your taste. The fact of the matter is, most buyers consider both new and resale homes before they decide. Both resales and new homes offer advantages & disadvantages.

 

New Home

Advantages

  • Personalized choices: You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.
  • Up-to-date with the latest codes/standards: The latest building codes, electrical and energy-efficiency standards will be applied.
  • Maintenance costs: Lower maintenance costs because everything is new and many items are covered by a warranty.
  • Builder warranty: A homebuilder’s warranty is usually available in all provinces (except Nunavut and the Northwest Territories). This can be important if a major system such as plumbing or heating breaks down. This warranty does not apply if you build the home yourself.

Disadvantages

  • Amenities: Neighbourhood amenities like schools, shopping malls and other services may not be complete for years.
  • Taxes: Such as the Goods and Services Tax (GST) will apply. However, you may qualify for a rebate of part of the GST or HST on homes that cost less than $450,000. For more information about the GST New Housing Rebate program, visit the Canada Revenue Agency website at, http://www.cra-arc.gc.ca.
  • Extra costs: You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what’s included in the price of your home.

Resale Home

Advantages

  • Easy access to services: Probably established in a neighbourhood with schools, shopping malls and other services.
  • Landscaping: Landscaping is usually done and fencing installed.
  • Extras included: Previously owned homes may have extras like fireplaces, finished basements or swimming pools.
  • No GST/HST: You don’t have to pay the GST/HST unless the house has been renovated substantially, and then the taxes are applied as if it were a new house.

Disadvantages

  • Possible redecorating and renovations: You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.
  • Perceived Value: One real disadvantage financially with a resale purchase is that the negotiating circumstances are personal. The sellers have an emotional tie, while builders are negotiating purely on a financial basis.

Once we have considered all elements, we have a better perspective on what we want. Now lets look at the DEALS.

REMEMBER 75% OF ALL HOMES SOLD IN GTA TORONTO ARE RESALE

This Blog has only scratched the surface. Sit down and talk to genieSABRE about your questions and concerns, needs and desires.

genieSABRE will be happy to show you both resale and new construction and will be able to provide insight to help you make the right decision.

I hope this helps as you consider which is right for you. I am quite familiar with all of these communities, so if I can answer any questions, please feel free to contact me.

Need a lawyer? Free Consultation – Call

Sabrina Hussain @ Nanda Law Office

Tel: 905-405-0199


 
 

CLICK HERE: If you have decided on a new Home

10 Tips That Will Save You Time & Money
When Buying a New Home

Play Video
 

Ready to Sell or Looking to Buy?

Call: Hannif Highclass @ 416-444-4252

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