Is Buying New Construction Worth It?
We understand why you’re asking this question. Buying any home is a HUGE investment, and not just a financial one! You’ll also invest a significant amount of time and energy, since many new construction properties have finishing details that need completion.
Don’t get us wrong, we’re not trying to scare you. Because buying a beautiful a new home can also be one of the most rewarding things you ever do.
It just depends on your priorities.
So, let’s define your ‘worth it!’ What are you trying to accomplish by buying your new home? At Justo, we make it a habit to ask questions that help us guide you toward to best buying decision for you. Here are some of the questions we ask, and how they may help you answer this very important question.
Questions to Ask When Considering Buying a New Construction Home
Do you want to move into your dream or ‘forever’ home?
If you’re hoping to move into your dream or ‘forever’ home, buying a new construction home might not be the best option. A newly constructed home is already built and in most cases, the fixtures, flooring, cabinetry, and other details have already been chosen. It may be hard to find a home that lives up to your ‘dream’ standards.
However, new homes are often built with luxurious, high-end finishes and in any case, you’ll likely need to replace all of these things in time. At that point, you can make your own selections.
If you’re looking for your dream home, a custom built or production home may be a better choice for you!
Do you need the best bang for your buck?
I know. It might sound silly, because most of us ALWAYS want to use our money as wisely as possible. However, there are times when we times in our life when we absolutely do not have extra money to build or buy a home with more extravagant features.
If you truly need to get a great deal, buying a new construction might be an extra good idea! New homes will also be energy efficient, keeping your utility bills low.
New construction homes might include some incentives, especially if you’re looking in a new community that’s almost complete. The builder may be motivated to sell the remaining homes at a great price. First time home buyers also qualify for some first time home-buyer incentives from CMHC.
Are you without a downpayment, or do you only have 5%?
If you’re a first time home buyer, you may be able to use government assisted programs to purchase your home with no down payment. This isn’t possible in all new home situations, but it is possible in a newly constructed home where the value of the home is clear.
Because there is no haggling over the price (in most cases), you can also solidify what you monthly mortgage payments will be before you make an offer — there will be no surprises or need to ‘up your offer.’
Do you want to live in an established community or on an established property?
Brand new homes are sometimes a bit incomplete. They’ll be safe and fully functioning, but may need a little TLC to be truly finished. New builds often need grass and landscaping, fences, and decks. Your basement may also not be fully finished.
If it’s important to you to have your home fully finished, a new construction might not be for you.
New communities are also lacking in mature trees and yards, so if you like the feel of a well-established neighbourhood, a previously lived in home might be more up your alley.
Do you want something new and shiny?
No judgement here! We get it! Many people just want the security and peace of mind knowing their home is new and they have a warranty.
If you aren’t handy or don’t want any surprises (like a leaking roof, broken dishwasher, or a furnace that needs replacing), a brand new home may be exactly what you need.
Brand new homes come with warranties on your appliances and fixtures, and the builder will guarantee their work for a set number of years for defects in building materials, windows, and craftsmanship. For many buyers, this is a huge incentive to purchasing a new home.
Are you looking for a good investment?
In most cases, buying new construction will be an excellent investment. If you’re buying in a new community, you’ll be able to look up comparable prices and know for sure if you’re getting a good deal, and likely the builder will be selling for a fair price.
A builder who is developing an entire community will likely be able to offer you an excellent price on a new home. Reasons for this are:
- Your builder is purchasing building materials in bulk
- Each community has dedicated contractors who are offering their services to the builder at an excellent rate
- You might be able to get your home for a below-market price, often if you’re buying one of the first or last homes in a construction project (the builder will be motivated to sell)
Considering these points, it’s likely your brand new home will be an excellent investment, especially if you plan to live in the home for at least 5 to 10 years. It’s highly unlikely the real estate market will be lower than it was when you purchased if you invest about a decade of time in the property.
At Justo, we’re fans of new construction. In almost every scenario, a new home is ‘worth it.’ However, each property purchase is unique to the buyer, and what works for one person may not work for you. To better understand your wants and needs, we’d love to have a conversation with you. Our friendly and knowledgeable agents will be happy to meet with you to help you decide if a new construction is the right choice for you!
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