Just like buying a car, there are pros and cons to purchasing a new build. And in a real estate market as hot as Canada’s, potential homebuyers should be carefully weighing all the options available to them before making a purchase.
A new construction, also sometimes known as a pre-construction, includes any property from a single-detached home to a condominium to a townhouse. It also includes planned new constructions, where the purchaser is involved in the design process.
One of the big benefits of purchasing a new build is that the property is, as the name suggests, brand new. No one else has lived there before and it’s in pristine condition on move-in day.
No renovations are needed and the stress of expensive repairs down the line is alleviated. This means it is much lower maintenance. An added bonus is that most new constructions are also more energy efficient, which will save you money in the long-term.
On the flipside, those benefits come with a price. A new build is usually more expensive than similar pre-owned properties. And the timelines to get the keys can be much longer – sometimes pre-constructions can take months, or even years, to be completed.
This means the homebuyer is on the hook for the cost of living somewhere else while waiting (although in today’s market, many people who purchase new builds find that by the time they move in, their property has appreciated significantly).
And while it can be great to have the option to design and customize the home before it’s build, those upgrades are often more expensive than getting the work done by a third-party.
Ultimately, the decision of whether to purchase a new build or a pre-owned property is up to your budget and your timeline – for many people, it can be a great option. A word of advice, many developers required a prospective purchaser to arrive to the first showing or meeting with a real estate agent if they plan to use one they chose. Otherwise, you may have to go with their in-house real estate brokers who might not be able to negotiate on your behalf as effectively.