When looking for a home in Canada, one of the first and most important questions you’ll have to consider is whether you should buy a new build home or a resale. Both have advantages and disadvantages, but how do you know which one is right for your needs? In this article, we’ll explore the benefits and drawbacks of buying a new build home to help you make an informed decision.
What is a New Build Home?
A new build home is a property that has been recently constructed or is currently under construction. These homes are typically sold directly by the builder or developer and, have never been lived in before. They can range from single-family houses to townhouses and duplexes.
The Benefits of New Build Homes
New build homes offer a range of benefits over resale homes, making them a popular choice among home buyers. Here are some of the key advantages.
Move-In Ready Convenience
One of the most significant advantages of new build homes is that they’re move-in ready on possession day, allowing you to settle in comfortably without delay. Unlike older homes, which often come with the burden of extensive repairs or renovations, a new build eliminates this hassle entirely.
You don’t have to worry about dealing with outdated plumbing, wiring, or structural issues that can be inconvenient and costly. Instead, everything in a new build is fresh, modern, and under warranty, ensuring peace of mind. You can start enjoying your space from day one, without the stress of uncovering hidden issues or facing additional costs down the line.
Plus, if you have a tight moving timeline and can’t wait for a new home to be built from the ground up, you have the ability to choose what’s called a quick possession, a spec home, or move-in ready home. This is a new build home that is almost finished being built or may already be move-in ready. This is a great benefit if you’re more flexible with features and finishes and want to enjoy living in a brand-new home right away.
Customizability at Its Best
New build homes offer unparalleled customizability, providing homeowners with the unique opportunity to create a living space tailored to their personal preferences. From selecting high-quality granite countertops that lend an air of elegance to your kitchen, to choosing sleek stainless steel appliances that promise functionality and modern appeal, the range of available options is vast.
You have the freedom to choose the upgrades that not only match your taste but also fit your budget, allowing for a home that is both beautiful and economical. This level of personalization ensures that your home is a perfect reflection of your style, enabling you to express your individuality through every design choice.
Whether it’s the colour palette of the walls, the type of flooring, or the fixtures and finishes, every detail can be customized to create a space where you truly feel at home.
Modern Features and Energy Efficiency
New homes are built with the latest technologies and materials, making them more energy-efficient than older properties. They often incorporate cutting-edge designs and sustainable practices that enhance comfort and contribute to a greener lifestyle.
Features like high-efficiency heating and cooling systems ensure homes stay warm during the winter or cool during the summer, all while using less energy. Advanced insulation keeps the indoor temperature stable, reducing the need for constant heating or cooling.
Energy-efficient windows allow natural light to flood in while keeping heat out during summer and retaining warmth in winter. These innovations can significantly reduce your utility bills, offering long-term savings.
By minimizing your environmental footprint, you contribute to the global effort of combating climate change, making these homes not just a personal investment, but a step towards a more sustainable future.
Drawbacks of New Build Homes
While new build homes offer a range of benefits, there are some potential drawbacks to consider before making a decision.
Potential Delays and Inconveniences
Building a new home is a complex process that involves various parties, and delays can occur. From obtaining necessary permits to dealing with unforeseen construction challenges, building a home can sometimes be unpredictable. This uncertainty can cause frustration and inconvenience, especially if you have a strict timeline or need to move in on a specific date.
Higher Price Point
New build homes often come with a slightly higher price tag compared to resale properties. This can be due to a variety of factors:
- extra customization
- modern features
- energy-efficient materials
- and more
While this can seem off-putting at first, it’s important to consider that you’ll usually save money in the long-term compared to a resale property, because you won’t need to replace any outdated parts of the home for many years.
What’s the counter to this? Living in a new build home can save you a lot of stress because you don’t need to worry about things breaking down. Plus. you’ll be covered by a new home warranty in the rare event something does go wrong.
There’s also the opportunity for builder and/or developer promotions and incentives, which means you could get an even better deal on your new build home.
Living In An Area Under Construction
If you’re buying a new build home in a development, there’s a good chance of ongoing construction in the area. This can create noise and inconvenience during your first few years of living there. You may also find that local amenities are limited at first, as the area is still being built around you.
However, it’s also worth remembering the value of your property will rise as these amenities are added and the neighbourhood becomes more established. Think of it as getting in on the ground floor of an up-and-coming area, which can be a great investment for your future!
New Build vs Resale Homes
Here’s a quick side-by-side comparison for you.
| New Build | Resale | |
| Repairs, Maintenance, and Renovations | Not applicable in a new build and you won’t have to worry about it for years | Whether hidden or found during the inspection, the costs for these can really add up |
| Energy Efficiency | Meet current energy code standards | Outdated windows, older HVAC systems, poor insulation – retrofitting can be costly |
| Floor Plans and Layout | Designed with today’s open-concept layouts, more storage, larger windows, etc | Closed-off rooms, smaller closets and bathrooms, outdated kitchens = less functional space. |
| Design Flexibility | Many customization and design options to choose from | What you see is what you get. Which means renovations and money for any changes and updates |
| Environmental Concerns | Typically constructed with eco-friendly materials and methods, and often designed with sustainability in mind | The older the home, the more likely you’ll find less environmentally-friendly materials and/or methods were used. |
| Timeframe | If going with a move-in ready, usually less than 30 days. Building brand-new is anywhere from 9-12 months | Usually ready to move in immediately |
| Pricing * | $400,000 – $800,000, not much wiggle room with the builder | $400,000 – $750,000 with more room for negotiation with the seller |
* average pricing for a 2,000 square foot home at the time of publishing; not including Vancouver or Toronto, which are the two highest-priced markets in Canada
Is a New Build Home Right for You?
Ultimately, the decision to purchase a new build home or a resale property depends on your personal preferences and priorities. Consider factors such as convenience, customizability, energy efficiency, potential delays and inconveniences, and price point before making your choice.
If you desire a modern, move-in ready home that reflects your unique style and offers long-term savings through energy efficiency, then a new build home may be the perfect fit for you. However, if you value a more established neighbourhood and are willing to put in some effort towards renovations and repairs, then a resale property might be the better option.
Whichever path you choose, remember that your home is not just a financial investment but also a place where memories will be made. So take the time to carefully consider your options and make an informed decision that aligns with your vision for the future. As always, it’s crucial to work with a trusted company that can guide you through the process and help you find the perfect home for you. Happy house hunting!