Should You Buy a Resale or a New Build?

If you're thinking about moving, you may be weighing purchasing a new build versus a resale.  For a rundown of the pros and cons of each, read on.

New Build Pros

• Brand-new condition

• Can customize features

• Most are covered under warranty for the first few years

• Often built with the latest energy-efficient features, saving you money on utility bills

• Typically pay less in maintenance fees

New Build Cons

• Lot, floorplan, and views can change during construction

• Construction delays are common, leaving you at the mercy of whatever the interest rates are when construction is complete and your move-in date in limbo

• The amenities, school, and sense of community can be unknown for some time after construction is complete since housing takes priority in new neighbourhoods

• With no market history, it’s more of a gamble on what will happen with your investment

Resale Pros

• What you see is what you get (you can get a sense of the neighbourhood, the amenities, and schools before you buy)

• Closing date is fixed

• You know your mortgage rate before you buy

• You can research how the property has appreciated over time, giving a better sense of how your investment will do

Resale Cons

• Not brand-new

• Have to renovate if you want specific features

• Not usually covered under warranty, unless it’s a newer resale home with existing coverage

• Usually less energy-efficient

• Typically higher maintenance costs

Ultimately, the decision between buying a new build or resale home will come down to your needs and wants, your risk tolerance, and of course your budget.