The Condo Act's New Performance Audit
Why Do Homebuyers Choose Resale 60% Of The Time?
According to the Canadian Mortgage and Housing Association, six out of every ten homes sold in the Toronto area are resale; four are new. Prospective homebuyers must eventually decide for themselves which type of home is right for them, keeping the following considerations in mind.
PRICE &VALUE
Generally speaking, you can get "more house for your buck" with a resale home. For example, many upgrades made to a new home - swimming pools, a cedar deck, add surprisingly little to the market value of that home when it comes to be resold. Because of this, the resale homebuyer can get these various upgrades as part of the home's selling price without having to pay individually for each item.
On the other hand, with a new home the buyer is not saddled with the previous owner's taste in interior decoration. Further, the upgrades, heating and plumbing systems will be more up-to date, efficient and under warranty in a new home.
Resale and new homes are also taxed differently. Resale homes are exempt from GST, while new homes are not. However, new homes are eligible for a rebate that reduces the GST to 4.5 per cent. Also, first-time buyers of new homes are eligible for a rebate of the Land Transfer Tax. This rebate is not available for first-time buyers of resale homes, even though according to research conducted for the Ontario Real Estate Association 80 per cent of first-time buyers purchase resale homes.
Buying new, in the GTA area, often means buying outside of established communities. Although new developments are carefully designed to enhance community spirit by balancing public and private space, there are certain elements of established neighbourhoods that simply can't be recreated.
ESTABLISHED NEIGHBOURHOODS & MATURE LANDSCAPING
One major advantage of buying resale is that, when it comes to the neighbourhood and local services, what you see is what you get. There are no surprises waiting in store upon moving in.
It is easy to ascertain local traffic patterns, crime rates, and school performance. And the adequacy of local services can also be determined, because they are already up and running. Further, within existing neighbourhoods the landscaping has had time to mature and the homes tend to have a "charm" or "character" missing in new home developments.
No matter what your choice, new or resale, be sure to approach your homebuying search in a methodical fashion. Drive around the prospective neighbourhoods at different times of the day to make sure they are really where you want to live.
And throughout the process choose a Realtor to guide you. Realtors are licensed professionals who must meet continuing education requirements and abide by a strict code of ethics. Using their exclusive access to the Toronto Real Estate Board's Multiple Listing Service, Realtors can help you search for the home of your dreams in the most effective manner. As well, your Realtor will commit to representing your interests in writing, giving you confidence that a professional is on your side.
