One decision home buyers need to make is whether they should build a new home or settle into an older home. There are pros and cons for each type of home and I have put together a list to help you decide.
New house
Pros
- Roof and appliances are brand new and under warranty
- Home is covered by the New Home Warranty program
- You can customize your home to suit your taste and needs
- Your property will increase in value
- You can choose environmentally friendly materials to increase the efficiency of your home and offset some of the environmental impact
- Your home will be optimized for modern technology
- Your home may include additional safety features including fire retardant materials
- Many home builders offer attractive incentive packages
Cons
- You will pay GST on the purchase price
- Builders do not always allow negotiation on the purchase price
- Newer neighbourhoods may not have many amenities
- You may need to install a fence and landscaping
- Closing date may be unpredictable due to construction delays
- Even though your house is finished, your neighbourhood may still be a construction zone for months or years to come
- The landscaping in common neighbourhood areas may take years to mature
- Newer homes are often on smaller lots
- Market value of homes in newer areas may be more likely to fluctuate as the neighbourhood grows
- It may take a few years to identify significant construction deficiencies
Older home
Pros
- Mature landscaping in an established area
- May have more character than a newly built home
- Easier access to amenities including schools, transit, playgrounds, shopping, and more
- Seller may be willing to negotiate significantly on price and possession date
- Older homes in established areas are likely to have larger yards
- Established neighbourhoods are more likely to have a stronger feeling of community
- Most construction deficiencies have been identified (and repaired, if you are lucky!)
- Can be easily customized with renovations
Cons
- Expensive repairs may be required in the near future
- Home may not be optimized for modern technology
- The home has been subject to wear and tear
- Renovations may not be up to code
- Additional renovations may be required
- May be less energy efficient and more expensive to heat
- May not have features common in newer homes such as walk in closets or an open concept layout
New build versus older home: which do you prefer and why? Tell me about it in the comments below!