Buying your first home is an impressive feat, although you are sure to have plenty of questions along the way. To start with, is it better to buy new construction or an existing home?

Your decision will impact almost every step right from the beginning. A brand-new build has a lot of appeal, but it isn’t for everyone, especially given the lengthy timelines and delays that can happen. That said, first-time buyers are often at an advantage when it comes to buying a new construction home. Let’s take a look at a few of the reasons why.

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First-Time Buyer: New Build Vs Resale House

The joys of buying and owning a brand-new house that no one has ever lived in are plentiful. Everything is pristine and untouched, and modern homes are known for open-concept layouts and superb use of natural light.

You won’t have to worry about repairs or maintenance for the foreseeable future. Your house is protected by a Tarion warranty, which provides the peace of mind that is particularly important to first-time buyers.

The vision of stepping into a brand-new build can make it easy to overlook some of the drawbacks of pre-construction. There aren’t many disadvantages, but it always pays to be aware.

• Over the long term, new construction does tend to be more expensive. On the one hand, the prices are set by the builder and are not subject to market ups and downs like resale properties. On the other, the purchase price is higher, and every upgrade comes at a cost. This is something to keep in mind while touring the model home.
• You may be waiting for a long time to take possession of your new home. Depending on how far along the builder is in the construction process, it can be years before you can move in.
• Another potential downside is having to wait for the community amenities to be built including schools, parks and plazas. Or even the initial angst of waiting for grass and trees.

Why choose Pickering as the place to buy your first home? We can think of a few reasons:

• Is Pickering a Good Place to Live?
• Is Pickering Going Green?
• What Are Pickering’s Best Neighbourhoods?

Does a New Construction Home Align With Your Goals?

Even with the potential downsides of a new build, it might still perfectly align with your goals as a first-time buyer. In fact, you may be better positioned than anyone else, for several reasons.

It’s true that a new build can be more expensive initially. However, factor in that you shouldn’t be facing any costly repairs, nor will you need to make any upgrades anytime soon. That alone can be appealing for a first-time buyer without the skills or budget for home improvement projects.

For a resale home, you need to come up with your down payment quickly. When buying pre-construction, you can usually make smaller payments spread out over time. This flexibility can be the deciding factor for many younger buyers who are establishing themselves in their chosen career.

The lengthy timelines are one of the main deterrents for other buyers who would consider a new construction home. However, for a first-time buyer living at home while attending college, the long wait can actually be an advantage. You know there’s a place waiting for you with your name on it, and you have time to prepare yourself financially.

Do you want to learn more about all of the new developments coming up? Check out What You Need to Know About Pickering’s Hot Condo Market.

Your First Steps to Homeownership

If you think that a new construction home is the right path for you, the first step should be to obtain professional representation from a real estate agent. You could buy directly from the sales representative at the model home, but remember, they represent the builder. Their job is to earn the most money for the company, which comes at your expense. Whether they are selling the least desirable lots to you before other premium ones or not taking the time to highlight the negatives of the location

Working with a real estate agent with pre-construction experience means you have a knowledgeable expert to protect your interests and well-being as a buyer. We negotiate for you, to get you the best possible floor plan in a desirable location and negotiate additional incentives or a more attractive deposit plan.f. This level of representation is invaluable for all home buyers, but even more so when it’s your first.

Decide on a Location

Your city and neighbourhood are among the first decisions you will make when buying your first home. If you’ve got new construction in mind, there’s no better place to begin your search than Pickering!

This is one of the fastest-growing cities in the GTA, with greater affordability and availability of houses than anywhere else in the region. If you’ve got your eye on a low-cost, entry-level condo, Pickering is home to approximately 75 brand-new residential towers.

If you have a higher budget and want to begin your homeownership journey with a little more space, look no further than Seaton. Whether Seaton Whitevale, Seatonville, Seaton Winding Woods or New Seaton. These new communities are one of the most exciting developments in Canadian history. Numerous modern homes are already available – with countless others in the works.

Looking for even more resources and advice for getting your foot on the property ladder? You’ll find plenty of valuable tips in the posts below:

• Can You Make a Home Offer Appealing Without Paying More Money?
• What Creative Solutions Are Available for First-Time Buyers?
• Why a Status Certificate Is Important When Buying a Pickering Condo

Organize Your Finances

If you’re in the planning stages of buying your first home, it’s time to start getting your finances in order. Consider how much you will need for your down payment and begin saving as early as possible.

When planning to purchase within the next 90 to 120 days, a mortgage pre-approval lets you lock in the lowest interest rate. It’s also a powerful tool for creating your budget and negotiating with sellers. When you can prove you qualify for financing, they are more likely to accept your offer.

In addition, remember that there are numerous government resources available to help first-time home buyers get into the market. For example:

• The First Home Savings Account which allows you to start saving for your first home. This investment account has a $40,000 lifetime maximum, but any dividends you earn can also go toward your purchase.
• You can pull out up to $60,000 from any RRSPs for your first home under the Home Buyer’s Plan. These funds remain tax free as long as you repay them within 15 years.
• Save $4,000 off your land transfer taxes with a provincial rebate. This saves you a significant amount on your closing costs.
• The First Home Buyer Tax Credit allows you to claim $10,000 on your return that year, resulting in a tax savings of $1,500.
• When buying new construction, you may qualify for an HST rebate. This program isn’t specifically for first-time buyers, but any savings will help!

Do you want personalized guidance and a custom plan for buying your first house in the GTA? Our Pickering real estate agents are here to help every step of the way. Connect with us at info@teamrajpal.com or call 647-875-8000 with any questions or to get started.

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