Monday, January 19, 2009

Buying New vs Resale Homes in the GTA

When you start the search for your dream home, you'll probably hear a variety of opinions on whether you should purchase a newly built home or a resale home.

There are advantages to both, and your individual needs, not the age of the structure, should be foremost in deciding which is best for you. For a better idea of which type may be more suited to your needs, let's look at the advantages of both new and resale homes.

Why buy a new home?

Perhaps you love the idea that you can be a home's very first owner. Everything is new and shiny, the neighbours are probably also just moving in, and you can customize the floor plan and colours. Add a fireplace or ceramics, pick your own Kichen cabinets. Buying a new home can be fun and exciting. Here are some other advantages:

  • New homes are built with new materials and appliances, so less maintenance is typically required than with resale homes.
  • They often possess more safety features and fewer health hazards to conform to today's building codes.
  • Many homebuilders offer warranties in case certain problems develop over time.
  • The home's major appliances and systems also typically include manufacturers' warranties.
  • They typically feature modern architecture and layout such as great rooms, bigger closets, and additional bathrooms, which often replaces the formal dining and/or living rooms of older homes.
    New homes are usually well-insulated due to better windows, more efficient heating and cooling equipment, and greater use of insulation.
  • The homes are often made with materials requiring less maintenance, such as aluminum siding, vinyl windows, and pressure-treated wood decks that resist rot and insects.
  • They can be easier to customize than resale homes since you can choose many details ranging from floor plans and paint colors to faucets and light fixtures.
  • New homes are more apt to be wired with new technologies in mind, such as being pre-wired for multiple phone lines, high-speed Internet connections and extra cable outlets.
Why buy a resale home?

Housing styles have changed with time, and you might favour more traditional layouts and features. Older houses and neighbourhoods may have more character and charm. A sense of community. Schools and libraries have already been built. The trees are full-grown, and the neighbours can tell you all about your new residence and its history. Here are some other advantages:
  • Resale homes may provide more opportunities for home improvements.
  • They typically have more land than newer properties due to changes in land-use patterns.
    The homes are often in older, more convenient metro areas rather than outlying suburbs.
  • You can use the existing home as a base for building a unique property through modernization or expansion.
  • Resales tend to be less expensive than new properties and more likely to come complete with items that may cost extra with a new home such as blinds, landscaping, built-ins, fencing, all meter fees already paid, etc.
  • Depending on the neighbourhood, resale homes may have lower tax assessment rates.
  • These homes often have more traditional layouts, which may include such areas as formal living and dining rooms.
  • Buyers can most likely purchase a larger home for the same money with a resale than with new construction.
  • Buyers often have more room for negotiating the price or terms of sale than new homes.
  • You can feel, see and touch the hoouse you are buying vs holding a plan and a contract.
  • Check out who your neighbours will be before moving in.
  • Older Toronto neighbourhoods have access to public transit.
  • RESALE Market is currently in a Buyer's market mode with incredible opportunities.
As you can see, both offer significant, but very different advantages. Keep in mind that the real question shouldn't be about whether to buy a new or used home. It's more about finding which individual property will best meet the needs of you and your family.

I welcome working with you to find that Dream Home in your future.

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