New house vs resale? Which should you choose?
April 4, 2013
By Sheryl Smolkin
After renovating an old house and then buying a new house in the suburbs, we think we finally got it right with our current home which is close to the Finch subway station in Toronto.
Over 10 years ago, the builder assembled three large lots with small bungalows, tore them down and built five new two-story detached homes. We got the end unit surrounded by a park. We have an energy efficient furnace, the house is fully wired for Internet and it was a lovely blank, clean canvas to decorate.
I thoroughly enjoy working at home in my cheerful, bright office. When I do have to go downtown for meetings in off peak hours, I walk to the subway in five minutes and I always get a seat.
But whether to buy a new house or a resale is a very personal decision. Here are a few of the things you should consider before making up your mind.
If you want to live in a built up neighbourhood, close to public transportation you will generally opt for a resale home. Unless you can get an infill house in an old neighbourhood, new homes tend to be in a suburban area which can mean a longer daily commute.
In a new development you will typically get more house for your money. But depending where you work, you also have to figure in the cost, wear and tear of a longer commute. Furthermore, resale homes generally already have paved driveways, fences, decks and landscaping which you will have to shell out for on top of the initial purchase price of a new home. Proximity of local schools and other services may also influence your decision.
Older homes often have traditional layouts. It may be possible to add another bedroom, an ensuite bathroom, an upgraded kitchen or a main floor family room. However, renovating can be hard on both your nerves and your wallet.
When you buy a home from the plans, you can select the layout you prefer and in some cases you can even customize. You also get to chose from a broad selection of paint colours, kitchen cabinets, counter tops, carpet and flooring.
Newly constructed homes are typically better insulated and have double or triple glazed windows which will save you money on heating and cooling costs. They also generally come with a high energy furnace and new more efficient appliances.
Upkeep for an older home can be more expensive because of older appliances, plumbing and electrical systems. You may need a new roof or a new furnace sooner than you think. Old windows and inadequate insulation can drive up heating bills. In contrast, every new home in Saskatchewan is covered by the New Home Warranty Program.
What I’m hoping is that someone will decide to build new, affordable infill bungalows close by so for the next chapter we can have the best of all worlds – a new home on one floor in an established neighbourhood that is also accessible to public transit.
And the icing on the cake would be if our wonderful neighbours keep their promise to buy the house next door.
Have you bought or sold a house lately? Send us an email to firstname.lastname@example.org and tell us whether you bought a new or resale house and why. If your story is posted, your name will be entered in a quarterly draw for a gift card. And remember to put a dollar in the retirement savings jar every time you use one of our money-saving ideas.
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