If you’re in the market looking to purchase real estate – you may be wondering if you should purchase an existing home or a brand new build.
The decision between buying a new construction or an existing home depends on various factors, and both options have their pros and cons. In my years of experience purchasing multiple homes in Ontario and Quebec, here are my personal pros and cons of a new construction home vs existing home.
Table of Contents
New Construction:
Pros:
- Customization: New constructions often allow for more customization in terms of layout, finishes, and features. You may have the opportunity to choose certain upgrades of the home according to your preferences.
- Energy Efficiency: New homes are often built with the latest energy-efficient technologies, which can result in lower utility costs over time.
- Warranty: New homes typically come with warranties, covering major structural components and systems, providing peace of mind and potentially saving on repair costs.
- Modern Amenities: New homes are designed with modern lifestyles in mind, featuring contemporary layouts and amenities. You’ll often see the best features in the model homes.
Cons:
- Cost: New constructions can be more expensive on a per-square-foot basis compared to existing homes. Customization and premium features can further drive up costs. There is also a greater cost associated with the down payment required for a new build (20%).
- Landscaping and Extras: Often, new constructions lack landscaping and additional features that may have been added to existing homes over the years. Other extras may include fencing, appliances and outfitting your house with AC units.
Existing Home:
Pros:
- Established Neighborhoods: Existing homes are typically located in established neighborhoods with established amenities such as schools, parks, and shopping centers.
- Character and Charm: Older homes may have unique architectural features and a sense of character that some people find appealing.
- Mature Landscaping: Existing homes often come with mature landscaping, providing a more developed outdoor space.
- Negotiation Room: There may be more room for negotiation on price compared to new constructions. Along with this, you may be able to purchase a home with just 5% down, as CMHC, Canada Guaranty or Sagen.
Cons:
- Maintenance and Repairs: Older homes may require more maintenance and could have outdated systems that may need upgrading, potentially leading to higher ongoing costs.
- Limited Customization: Existing homes may have limitations in terms of customization. Renovations may be necessary to achieve desired features.
- Energy Efficiency: Older homes might not be as energy-efficient as new constructions, leading to higher utility bills.
Ultimately, the choice between a new construction and an existing home depends on your priorities, budget, and personal preferences. Consider factors such as location, cost, customization options, and your willingness to take on potential maintenance or renovation projects.
It’s advisable to weigh these factors carefully and, if possible, consult with a real estate professional to guide you through the decision-making process.
If you’re thinking about purchasing a new build home, make sure you read our guide on the upgrades to avoid.
