When it comes to buying a property, the difference between new and used goes far beyond stylistic and aesthetic considerations.
In order to enlighten you in your decision, here are some distinctive elements between a new or used home.
GST and QST
New construction is taxable (GST and QST), which is not the case for older buildings.
The purchase price
In new homes, prices are generally set by the developer. In used homes, it is always possible to negotiate with the seller, an individual in the vast majority of cases. On the other hand, if one generally associates the new one with prices a little higher, this rule is not applicable every time.
The condo market is a good example. If a condo building is finalized and there are only a few units left to sell, a developer could be more negotiable since he will devote his energies to his future projects.
Also check if you can benefit from government tax programs and credits for the purchase of new homes. Contact a Multi-Prêts broker to get to know you better.
To begin your search, check out our list of the best sites to find a home.
The delivery date
For a variety of reasons, a builder may not be able to deliver the new home on time.
This aspect may have advantages and disadvantages on both sides.
A new construction can allow you to choose certain materials and participate in the interior design. However, this has the disadvantage of generating additional costs that are most likely not included in the base price. The same may be true for earthworks, paving and fencing.
For a used home, we must show some luck or a lot of patience to find a property with interior design and exterior that is precisely what we are looking for. This could result in additional costs for renovation and redevelopment. Note, however, that some types of home improvement may increase its value when it comes time to sell it. It may be possible to finance this work on the initial mortgage. Contact a Multi-Prêts broker to have your application prepared.
Maintenance and repairs of a used house
In the vast majority of cases, a new home assures homeowners that work will not have to be done for at least a few years. In addition, guarantees such as the Guarantee Plan for New Residential Buildings offer buyers peace of mind. It remains essential to research the past achievements of the developer and builder and to know the terms of the purchase. However, any manufacturing defects raised in the first five years should be resolved by the contractor.
Even if one must remain vigilant with new, due to the wear of time, the probabilities of hidden defects are higher on the side of the used, in particular because of the age of the building, its wear . Moreover, consult our text to better deal with hidden defects .
Since they are built to the latest standards, new construction could normally save you money on energy. It remains important to estimate whether the higher purchase price justifies future savings.
Generally, a newly built house in a new development will not allow you to enjoy as abundant vegetation as in an older neighborhood. At the same time, if the neighborhood is still under development, it could mean that you will have to live with the noise and dust of the remaining construction work. Ultimately, the important thing is to find nearby services that matter most (schools, shops, transport, park …) and the type of neighborhood life that interests you. Read this article to learn more about the walk score , which helps to better assess the proximity of services.
Whether you choose new or used, a good mortgage advisor will inevitably be a starting point. Contact our brokers now.