New Home Construction VS. Resale Homes in Vaughan Real Estate

Here are just a few ideas when considering a New Home Construction as opposed to a resale property.

Whether you decide to design and construct a brand new home, or purchase a resale property is a big decision when purchasing a home. The only one who can determine what best is you. You should look at the pros and cons  and compare. I going to give you a few ideas in this blog.

 

What is appealing to home buyers when considering a New home construction is the fact that one can choose their own design and decor. Also, everything is new, and that can be appealing to the majority of Buyers.    New homes have modern layouts that support modern life-styles and technology.

 

In Vaughan Ontario there are also a some disadvantages in Buying a New Vaughan Home.  The H.S.T, oh yes the dreaded Harmonized Sales Tax, applies to New Home Construction.  Its tough to come up with a down payment and if Buyers put most of their down payment towards a The H.S.T, this could be very unappealing. The new home doesn’t come with trees, shrubs, Fences, appliances, window coverings and other finishing’s. Buyers could also expect very small lots.  Having dust on your vehicles for a couple of years while the subdivision is being completed can also be a deterrent. Oh and don’t forget about the levies and service hook-ups. The builders don’t mention these costs, but believe me they are not going to take on the expense.

 

There are several advantages to finding a resale. If a Buyer has their heart set on moving to an urban neighbourhood in a specific area, your only choice might be to purchase a resale property. Resale homes are frequently in long established neighbourhoods with mature landscape designs and lots of charm. They usually come with bigger lots. Many resale homebuyers also find that they can put off purchasing house decor items and appliances, because most resale’s come with appliances and window covering and also electrical light fixtures. Frequently, homebuyers modernize their resale purchase, which will raise the value of a resale property far more quickly than is possible with a new home construction. Yes the H.S.T does not apply to Resale Homes in Vaughan Real Estate.

 

There are some cons as well. Floor plans are outdated as well as Kitchens, Bathrooms, Floors etc.Buyers sometimes need to update common needs for a home such as Roof, Furnace, driveway, windows, Landscape, etc.

 

In the end, choosing a new home construction or a resale home is a tough choice. Most times it comes down to Fianancing and Location.. If the homebuyer knows what they are looking for, then this list of advantages and disadvantages should assist in making decisions easier..
If you are considering a move to Vaughan Ontario, consider speaking to John Rossi, an expert in Vaughan Real Estate. http://www.VaughanHomeSales.com , http://www.RossiDuo.com

 

Can You believe That The Majority Of Ontarians….?????

(56%) of Ontarians Believe Harmonized Sales Tax Applies to Resale Home. The introduction of the Harmonized Sales Tax in both Ontario and British Columbia on July 1st 2010 has been widely cited by real estate professionals and analysts as one of the major factors affecting a slowdown in housing sales.

This theory seems to be supported by a recent survey commissioned by the Ontario Real Estate Association (OREA) and conducted by Ipsos Reid, which shows that 56% of people in Ontario believe that the new HST applies to the cost of resale homes.

Read More With the average resale home price sitting at $333,000 in Ontario, this means that many would expect to pay an additional $40,000 in sales tax if they bought a home at that value. The reality is that there is no HST collected on th full purchase price of a resale home. In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).

“Clearly, Ontarians still don’t know what the HST covers and what is exempt,” said OREA president Dorothy Mason. “This is not helping the housing market, and it’s not helping the Ontario economy. This confusion means that many buyers think the cost of a resale home is tens of thousands of dollars higher than it actually is.”

She added: “We’re doing our part to inform our clients, but we shouldn’t have to do it alone. We’re calling on the Ontario government to launch an immediate public awareness campaign to educate taxpayers and end the HST confusion. For average homebuyers, learning that the HST does not apply to the full purchase price means a $40,000 saving they weren’t expecting.”

Although there have been signs of improvements in the Canadian housing market recently, with the Canadian Real Estate Association reporting sales gains in both September and August, Real estate agents in Ontario are concerned that their business is being damaged by the fear their business is being hurt largely by the mistaken belief that the HST applies to previously owned homes.

Give me your feedback, as to your knowledge of the H.S.T.. Did you know that re-sale homes were not charged the H.S.T.?

John Rossi
Sales Representative
RE/MAX WEST REALTY INC.
http://www.rossiduo.com
http://www.vaughanhomesales.com
grossi@trebnet.com
416-578-7675

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• UPDATE 2-Canada existing home sales fall, sales tax blamed (reuters.com)