Selecting a home type
Don't be pressured into buying a home that is not
right for you. There are a lot of choices out there and a lot of
pressures to buy. Here are the Pros and Cons of the various options
as well as a comparison of resale homes vs. new homes purchased
directly from the builder.
 Condo
Apartment
Condo/Freehold
Townhouse
Semi-Detached
Detached
Re-Sale
Home vs. New from Builder
New
Home from Builder
Condo
Apartment
Pros:
Lowest purchase price, lowest taxes
Virtually maintenance free — no snow shoveling or lawn mowing.
Convenient for singles, childless couples and empty nesters.
Cons:
Lower resale value, hardest to re-sell and can be difficult to
finance with low down payment.
Can have large maintenance fees that can substantially increase
carrying costs.
No private yard so you can't enjoy backyard activities such as
barbecuing, gardening, etc.
Share common walls with neighbours — if they're noisy you're
out of luck.
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Condo/Freehold
Townhouse
Pros
Lower purchase price and taxes than semi or detached and less maintenance.
Better resale value than condo apartment.
May have a backyard.
Cons
Lower re-sale value than semi or detached and harder to re-sell
Don't own the land — the most valuable asset (unless freehold
Townhouse).
Share common walls and close to neighbours
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Semi-Detached
Pros
Most privacy at least cost — great for first-time buyer.
You own the land — the appreciating asset — bricks and
mortar depreciate.
Good resale value and easy re-sell.
Easy to finance at best rates.
Usually has larger yard than townhouse, more backyard activities
possible.
Cons
Share a common wall with neighbours.
Higher price per square foot of living space than a townhouse in
a similar location.
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Detached
Pros
Best resale value and you own the land, the main appreciating asset.
Most privacy, least noise from neighbours because there are no
common walls.
Most desirable type of home with greatest perceived value.
Lower priced detached homes tend to sell quickly because of the
combination of prestige and affordability.
Cons
Highest purchase price and property taxes.
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Re-Sale
Home vs. New from Builder
As a first-time buyer, another major decision
you may have to make is whether to purchase a re-sale home or
a new home directly from a builder. Both options have their advantages
and disadvantages. Here's how they compare.
Re-Sale Home
Pros
Lower prices because of some wear and tear (which varies
greatly — check closely!)
You get the benefit of upgrades (finished basement, pool,
etc.) at a depreciated price.
Established neighbourhood, current neighbours, etc., are
known entities although they can change.
Cons
Home has been used by others.
No warranty for repairs required by law, although it can be made
a condition of purchase.
If existing décor is not to your liking, it can be expensive
and time consuming to change.
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New
Home from Builder
Pros
You are the first occupant and the house is yours to decorate as
you wish.
Purchase price includes colours, design features, etc. that you
select, usually with negotiable upgrades.
Protection from construction deficiencies is usually required by
Provincial Law.
Cons
There is often an extended period of time without lawns or paved
driveways, and with dust from unsodded areas and construction
traffic.
There can be problems with permits or trade strikes that prevent
timely completion and occupancy.
Defects in construction may not be addressed promptly.
Some closing costs apply to new homes that do not exist with resales.
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