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 In some provinces, the GST has been replaced by a Harmonized Federal and Provincial Sales Tax known as the HST.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.

By understanding the housing market, you’ll have a better sense of what, where and when to buy.

Buying a home is an important lifestyle and investment decision.

You want to buy at the best price possible. You want your monthly payments to be as affordable as possible. You want your home to increase in value as much as possible.

To make sure all that happens, it’s important to look beyond your individual purchase before you buy. You need to look at larger market conditions. What’s happening around you (house price trends, mortgage rate movements, new home construction, resales) will have an influence on your purchase. The more you know the more control you have.

In a buyer’s market, the number of homes available for sale exceeds the demand, so prices will either stabilize or drop. With fewer buyers and more homes, you not only have more options to choose from, you also have greater negotiating leverage. You have more time to look for the right home and you can evaluate the choices without feeling pressure to act too quickly.

In a seller’s market, conditions are favorable for sellers. In a seller’s market, the demand for homes exceeds the available supply of homes, leading to increased competition among buyers and higher prices.

Another major influence on your decision to buy is the mortgage interest rate. What rates are available now? Will they drop in the immediate future? Will they rise? If so, by how much?

So much to understand before you get started. If you have questions or need more information contact Bill Brandsma at 403-606-1765 to discuss your project.