There really is nothing like moving into a brand new home, one that no one but you has ever lived in. However, There are 5 main factors for buyers to consider when making the decision to purchase a brand new home versus a previously owned home. These 5 factors are listed below:
- GST: Previously owned homes are generally not subject to GST (with some exceptions such as working farms, some vacation homes, and homes that have been substantially renovated), whereas new homes are. In the North Okanagan most buyers can count on paying the full 5% GST with no rebate due to home prices being much higher than the allowable price ceiling.
- Landscaping: Older homes often have more mature landscaping, although there is no guarantee that landscaping is perfect. On the other hand, most brand new homes include minimal if any landscaping with a purchase. This can be a large expense and one that you want to include in your final calculations when you purchase.
- Appliances and Window Coverings: Many pre-owned homes have appliances that can be negotiated into an offer to purchase. Most brand new homes do not include appliance packages or window coverings, adding two more big ticket items to the bottom line that must be accounted for in the final cost tally.
- Deficiencies: Older homes may not have brand new innards, however someone has lived in the home prior to you, and has worked out all the kinks. If you have never owned a brand new home, then you may not be prepared for all the post move-in visits by the many trades people coming to fully complete or repair something. It’s a revolving door for your first few months of living in your new home – be prepared!
- Construction Zone: Buying an older home in an established area on a quiet, tree lined street is often a pleasant experience, one that you can enjoy immediately. On the other hand, most brand new homes are built in brand new subdivisions. And unless you purchase the last lot in the subdivision, your neighbourhood is going to be under construction for years to come. This means years of trucks and traffic and jackhammers and nail guns until the subdivision is complete.
As you can see, purchasing a brand new home isn’t the least costly, or the hassle/stress free option. However, as mentioned above, if you’re up for it and are prepared for a few costs and inconveniences, new homes in Vernon and anywhere else, are magical.