New Home or Resale?

There are advantages and disadvantages to both new and resale homes. Here are some of the characteristics of both that may help you make your choice.

New Home

Advantages:

• You may be able to upgrade or choose certain items such as siding, finish materials, flooring, cabinets, plumbing and electrical fixtures.

• The latest building code, electrical and energy-efficiency standards will apply. A builder warranty is usually available in all provinces and the Yukon (but not the Northwest Territories). This can be important if a major system, such as plumbing or heating, breaks down.

• Unless you are a builder, warranties do not apply to homes you build yourself.

• There may also be incentives provided by the provinces and prospective borrowers should consult provincial or local authorities in this regard.

Disadvantages:

• Neighborhood amenities, like schools or shopping, may not be complete if the house is in a new development.

• There may be construction noise and traffic.

• There may be little to no landscaping or trees.

• The 7% GST applies to new housing. In some provinces, the GST has been replaced by a Harmonized Federal and Provincial Sales Tax known as the HST.

Resale Home

Advantages:

• It will probably be in an established neighborhood.

• Landscaping is usually done and fencing installed.

• It may have upgrades such as a built-in swimming pool or finished basement.

• There is no GST unless the house has been renovated substantially, and then the tax is applied as if it were a new house.

Disadvantages:

• Maintenance costs will likely be higher than for a new house.

• You may require a professional home inspector to check for structural or other problems, such as a leaky basement or faulty roof.

• You may need to redecorate, or even renovate.

So much to understand before you get started. If you have questions or need more information contact Bill Brandsma at 403-606-1765…always happy to help.