When choosing between purchasing a pre-sale or resale, depending on your needs and financial state, you may be better suited for one more than the other. Here are some points consider to help you with your decision.
- Resale homes purchased through the MLS® tend to be cheaper per sqft than a new home – and there’s no GST to pay.
- You can go and view the exact home you will be living in – no nasty surprises about space, feel, views and so on.
- As the resale home is already built, there’s no waiting days/months/years to move in.
- What you see is what you get. The home can be inspected thoroughly, before you remove subjects.
- A resale home has been lived in before – the unit’s fixtures and fittings will unlikely be brand new (unless it has just been renovated) and may wear out sooner.
- The building also won’t be brand new – and the older the building, the more wear and tear it will have, which means maintenance costs.
- You’ll have to pay Property Transfer Tax on the purchase – unless you are exempt (first-time buyer and purchase price is under $500,000).
- You’ll get a brand new, never-before-lived-in unit in great condition and under a New Home Warranty.
- New developments usually have great amenities and are in established or up-and-coming neighbourhoods.
- You may be able to to customize your unit, or at least choose from colour and design options offered by the developer.
- If the home is under $750,000, you’ll be exempt from Property Transfer Tax.
- New homes are desirable, which means they tend to cost more than resale homes per sqft – plus you have to pay GST.
- As your home won’t be built yet there could be a long wait to move in – and even if the value drops in that time, you’ll still pay the contracted price (which is also true if values increase). Plus, a lot can change during that time and you need to be sure you can get a mortgage and a down payment for completion date.
- You might get a pretty good idea of the home, but show suites and floorplans can sometimes seem quite different than your finished unit, especially in terms of intangibles like views and ‘feel’.
- There’s a lot of paperwork and other risk-mitigation factors to consider – you have to be sure you’re getting what you pay for.