Being the first to live in your new home comes with many perks! Nothing is nicer than moving into a clean, odour free home with no wear and tear!
Less Maintenance & Repairs
With new homes comes a reduced chance of experiencing hidden surprises which can require expensive renovations. With new appliances come warranties and a piece of mind knowing maintenance and repairs will be covered for several years.
Tailor your home to meet your preferences from colour schemes to flooring!
Save On Utility Bills
Newer homes are often built more energy efficient. With better insulation and new appliances one can heat and cool there home with less effort, reducing monthly energy costs.
Incentives & Discounts
Developers will often offer “pre-sale” incentives to entice buyers to purchase while still in the construction phase. Such incentives could include bonuses, gift cards, services or furniture.
Buy with Less
New construction purchases often require a deposit of only 5-10% of the purchase price. Since your mortgage will not begin until your home is completed you may have a year or two to invest your money and save for the remainder of your down payment. This allows you to capitalizing on that steal of the deal even though you may not have all the funds just quite yet.
When buying a new home you are investing into a project that has the potential of increasing in value over the course of the construction period before you even move in!
New homes come with 2-5-10 year warranty. This provides buyers with security knowing they will encounter minimal costs in the several years upon moving in. The new home warranties insure homeowners coverage for 2 years on labour and materials, 5 years on the building envelope and 10 years on the structure.
A builder can delay completion of a project due to various reasons. This can cause much hardship for buyers if they are needing to move in within a certain time frame. The uncertainty of new developments can result in buyers forced to find alternative, short term means of living to cope with postponed possession dates.
Since a mortgage can’t be granted until completion, the initial pre-approval process given at the time in which the contract is signed is only a rough estimate of how much you may qualify for. Lenders will only provide borrowers a mortgage based on the appraised value of the home. If at time of completion the property is appraised at a lower value than the purchase price, the purchaser will be required to come up with the difference. If one is unable to make up the remainder of the funds needed to close they face losing their deposit.
Brand new comes at a cost. When purchasing a new home you are required to pay a Goods and Service Tax on top of the purchase price displayed by the developer. The 5% tax will be payable at time of completion.
Limited Customization Options
Although you will be given the luxury of choosing among various details unfortunately you can’t add upgrades which are out of the scope of what is being offered. If you are wanting to add a “special” feature to your home this must be done on your own time and dime once you are settled in.
Less Room for Negotiation
The price listed for pre-sale homes is often set in stone. The builder won’t alter prices for certain units as doing so would change the comparables within the complex/condominium. This would in turn put the developer in direct competition with themselves so prices are unison among similar floor plans.