Advantages and Disadvantages of New Construction

Purchasing New Construction Property in Canada - What are the benefits?   

The idea of purchasing a new construction property is appealing to many homebuyers. From the ability to customize your home to the smell of a shiny new unlived-in home, there are many benefits to buying new construction. However, there are some drawbacks to consider. 

Advantages

1. Custom, custom, custom! One of the most exhilarating benefits of buying new construction is the ability to tailor your home to your tastes and needs. From selecting finishes to adding upgrades, you can design the home of your dreams.

2. Utility Savings. New construction homes are built with energy-efficient materials and appliances, which should result in lower utility bills and a more environmentally friendly home than their used counterparts.

3. Less Maintenance. Since everything is brand new, your new home will require less maintenance and repair than older ones. 

4. Warranty. Most new construction homes have a guarantee covering any defects or issues arising within the first few years of ownership. Pay close attention during your walk-through.

5. GST.  If the home is located in BC, and the purchase price with GST is under $750,000, you may be eligible to have the property transfer tax waived.  A partial waiver of this is eligible for up to $800,000.

 Disadvantages

1. Expense. New construction homes can be more expensive than existing homes, especially in popular urban areas where land is at a premium, and depending on how custom your tastes and needs are.

2. Timeline. The time to build a new home is unpredictable, and delays can occur due to weather, supply chain issues, or other factors. 

3. Area. Often, but not always, new construction homes are built where land is cheaper, which can mean longer commutes and less access to amenities like shops and restaurants.

4. Common. Some find that new construction homes lack the charm and character of older homes with more history. Depending on the level of customization, of course.

5. Availability. Customizing your home is the dream, but you will often have to accept alternate choices than your top picks due to availability, timeline and shipping—a recurring theme in recent years. 

New construction home ownership in Canada has its benefits and drawbacks. Customizing and enjoying an energy-efficient, low-maintenance home with a warranty is appealing, but the cost and location may only work for some. It's essential to research and weigh the pros and cons before deciding. Seasoned realtors or mortgage brokers are great resources for area-specific information.