Purchasing a home is a very strong drive for Canadians and a deep routed cultural trend in this country. Nearly 1/3 of all homes sold each year are new construction and the new construction market is booming!
There are quite a few things to keep in mind when it comes to deciding on whether to buy a new construction or to buy a previously owned home in an established neighbourhood. Here are a few things to consider when buying new:
1. Do Your Research
- You must be extremely diligent when it comes to pre-sale homes because of the overwhelming amount of bad developers.
- Review all the contracts, statements, terms and conditions, etc regarding the sale of the property. Some developers wipe their hands clean once a unit or property is sold.
- Explore the area and neighbourhood. Some construction projects are built on unsuitable land and others in undesirable areas.
- Tax. All new construction in BC has GST (5%) applied and if you are not a first time home buyer you will also have to consider Property Transfer Tax (PTT).
- Consider the market. Sometimes you can put a down payment on a property that takes 1 or 2 years to complete and in that time the market has dropped substantially. You cannot withdraw without financial and legal consequences.
- Construction. You are never guaranteed a completion date and you may be moving into a construction zone depending on how many phases or other buildings are being constructed around you.
- You can customize your home within the developers specifications and scope of the work. You also get warranties with your purchase, usually a 2-5-10 warranty.
- You getting the latest trends and electronics on the market and have access to new materials that are usually in high demand.
- You have a New home!