Surprisingly, buying a new home can end up costing the same as an old home. Wait a minute – What? You read that right. The costs associated with buying, then renovating, an older home can actually equal the cost you would have put into a newer home, minus the hassle.
Often, building a new home intimidates people. It sounds pricey. And don’t get us wrong. You do pay more for the upfront costs. But there are so many ways you save money in the long-run when buying new. You won’t have to update the place anytime soon. You get all the latest materials and energy efficient systems. And hey, if you are thinking of selling in the next 5-10 years, you will get more bang for your buck. Let us explain!
A New Home Requires No Renovations
This is the main reason a lot of people buy new. You won’t have to tear down in-the-way walls to try to open up the space. You won’t have to rip up any old and dingy carpet. Why? Because it’s brand new! You chose the flooring. You selected the layout. It’s already your style – you chose it!
When you buy an older home, it comes with all it’s nooks and crannies. You might get stuck with that bright orange carpet or that hideous wallpaper that makes your head hurt. Thus, the renovations begin – renovations that can span from a couple weeks to year-long projects.
With a new home, you save yourself the money, the time, and the headache that comes with. Once it’s built, it is move-in ready. You won’t have to spend anymore money once the house is paid for.
You Get What You Want Off the Bat
This goes hand-in-hand with renovations. You won’t spend extra money fixing up the place, making it yours. You are the first owner so you get to pick and choose all the fixtures and designs – with no extra spend. Plus, if you already have furniture, you can make your house to fit it, as opposed to the other way around (meaning you can save on furnishing the place!).
You Get the Latest Energy Efficient Systems
You will save big in monthly bills. With a new home comes the latest HVAC systems and insulation. It won’t cost you an arm and leg to keep it warm in those cold months, or cooler in those hot months. Older homes with older systems crank up those monthly bills. You end up paying more to keep your house at a reasonable temperature. In fact, newer systems can save you anywhere from $3000 to $7000 per year.
You also get the latest appliances and other fixtures. Want to save money in the water department? Go with a more water-efficient option for your laundry machines and showers. You get to choose lighting fixtures – ones that might go easy on that power bill.
Technology has vastly improved in the last 10-20 years. This means if you are buying a home that is 10-20 years old, you might get stuck with 10-20 year old HVAC, appliances, and water systems. These can be tough to replace (costing you even more money) and definitely increase your monthly costs.
You Won’t Have Any Maintenance – At Least, Not Yet
You won’t have a roof that needs replacing anytime soon. You won’t have windows that might go straight to a to-do list in the next year. Plus, if anything does go awry, you have warranties. Remember, it’s all new – so problems should be next to none. You also won’t get stuck with taking care of someone else’s huge garden or tree choices. Sometimes, when buying old, you get stuck with certain aspects that if you had a choice, you would rather not have.
A New Home Has a Higher Resale Value
If you don’t plan on staying in your home forever, a new home will have a higher resale value than an older home. A new home is equipped with all the latest features. Everything is up to code and it should sell fairly easily (location dependant). A lot of people would much rather buy a home that is only a few years old versus 10-20 years old.
Where as with an older home, you might invest a lot more time into trying to sell it. If there are updates or repairs, it deters buyers. Most people want a new and ready to move-in home.
You Get Tax Credits
If you are a new homeowner, you might be eligible to claim it on your taxes. While this applies to both old and new homes, we figured it couldn’t hurt to point out. If it is a new home, you are eligible for a GST tax rebate. Check out what your province offers by inquiring with your provincial tax offices.
You Might Save on Storage
A new home frequently comes with an abundant amount of storage. This is great – especially for seasonal items. In Canada with 4 seasons, storage isn’t optional. It’s necessary. If you buy an older home, you might be tight on space. And storage units can add up in price. You would have to not only pay for your storage compartment, but also make the commute if you wanted anything from it.
You Get The Ideal Entertainment Space
Older homes can make it hard to entertain. You might be doing renovations. You might just not have a big enough space to host 20+ people in one room. In newer homes, you save on expensive venues for big gatherings and can host them right in your living room. New homes frequently have open concepts. This means that the main floor is often wide open, with few walls separating each room. Instead, the kitchen and living area flawlessly flow into one. Ever notice how the party tends to move into the kitchen? An open concept solves that problem by merging the 2 spaces into 1.
Are you ready to build your new forever home? At Forever Homes, we strive to recreate your vision. We want to help you build a home that you will love in the years to come. For more information about the home building process, contact us. Our team of experts would be more than happy to answer any questions you may have.