Should You Buy A Resale Or A New Build?
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.