old vs new house buying

Ten Reasons Pre-Construction Homes are Better Than Buying a Used House

A pre-construction home simply refers to a home that has not been constructed. Even if it has not been built, there exists a floor plan which you can buy, and later the home is built for you so that you can move in and call it home. These homes are usually available when the builders release the lots. That is the basic definition and understanding of a pre-construction home. These homes are usually purchased by the buyers early enough. Have you ever thought of buying a pre-construction home? If not, start to think hard about it because such a thought will open for you an opportunity to get immense benefits as far as owning a home right from the pre-construction stage is concerned. When compared to a used house, a pre-construction home will always stand out because of what it brings to the table for you. Used homes come with various challenges which can at times complicate your life as a homeowner. You must now be wondering what benefits or reasons will drive you to invest in a pre-construction home and not buy a used house. The top ten reasons why pre-construction homes are better than buying a used house are as follows. You have to take a close look at the reasons and you will see and understand the difference even more.

  1. You can enjoy government incentives

As a way of encouraging development in particular areas, the government may offer tax breaks to developers. Other types of incentives can be offered just to make sure that development is enhanced in those areas. The buyers will be able to feel the impact of these incentives through the low prices that they will pay. Once the savings are passed to the buyers in form of lower prices, pre-construction homes will be available at much more affordable prices which will be convenient to most of the buyers who are seeking to be homeowners probably soon. This is something that you are not likely to experience if you decide to buy a used home. Think about this before making a step as far as securing your home is concerned because this factor is part of what makes pre-construction homes to be better than buying a used house.

  1. No bidding wars

What comes into your mind when hear of bidding wars? Here the main thing is that the highest bidder carries the day as far as buying a home is concerned. Bidding wars are the order of the day when it comes to buying used homes. It is very rampant in the Greater Toronto Area. You cannot also fail to notice bidding wars in other parts of the world. What happens in the real estate market when selling used houses is that, potential buyers usually bring forward offers which are higher than the listed price of the given house in the market. This prompts other buyers to start competing to see who will turn out to be the highest bidder and eventually snatch the house. This is very unhealthy, especially for buyers who have less money or are just not ready to engage in any bidding war. If you are not keen you could end up losing the opportunity of owning a home every time you spot a good house because bidding wars will always work against you. This is the real situation when it comes to buying existing houses and if indeed you are serious you want to own a home then in most cases you have no choice but to get yourself in a bidding war. This means that you will have to spend more than what you had already planned to spend. The only sure solution to avoid getting into this scenario is investing in a pre-construction home. It doesn’t matter where so long as it is a pre-construction home, you will be safe from the bidding wars and you will save a lot. Of course, no one wants to be financially extorted and this is where pre-construction homes come in handy. In pre-construction homes, the price that you see listed there in the market is the exact price that you will pay when purchasing the development. You will not be subjected to any bidding war at any given point. All you have to do is to have the required amount and get into contact with the seller and the rest will flow smoothly. Don’t you now see how pre-construction homes are better than buying a used home? If at all you are planning to get a home, consider purchasing a pre-construction home and you will see what it means to invest in pre-construction homes. You will not witness any bidding wars even if it means investing in pre-construction homes in Hamilton.

  1. There is a built-in appreciation

Appreciation is something that is highly valued especially when it comes to real estate properties. Appreciation means more money will come your way if you are an investor in the real estate sector. Pre-construction homes come with the added advantage of built-in appreciation. This means that the value of units in a particular development keeps on appreciating. This appreciation occurs as the units continue to be sold. For example, you may find that the more the units are sold the more the prices increase. When 60% of the development is sold, the prices of units will be higher compared to when only 40% of the development is sold. This means that prices increase with demand. The more people buy the more the prices go up. This is beneficial to you as a pre-construction homeowner because you will gain more. For instance, if you bought your unit when 20% of the development was sold and you decide to sell it when 70% of the development is sold, you will be entitled to sell your unit at the new high price which means you will reap much profit. This appreciation will put the price of the units in a better place and by the time the development is complete, the value will be high. You can invest in several units and watch your investment grow at a faster rate. On the other hand, if you decide to buy a used home, you will not enjoy this benefit of built-in appreciation. You will settle with what you have and wait for the normal general appreciation so that you can get something and that is if you later decide to sell your house. Just by looking at that alone, you can see how it is more beneficial to buy a pre-construction home than buy a used house. You cannot afford to let this great value slip off your fingers just like that. You have to take advantage of it and grab it. Pre-construction homes will always be the best even if it means you will have to wait a little longer before you can get your new home. And who knows maybe you could end up being a successful buyer of one of the pre-construction condos in Brampton. At any time go for a pre-construction home and you will later thank yourself for doing that.

  1. There are no previous owners to manage

At times, dealing with previous owners can be a bit hectic. In used houses, there can be instances where you will need to deal with problems that were left behind by the previous owner. It can be any type of problem that will need you to make some more follow-ups for example if it involves other members of the community or estate where the house is located. You will have to deal with what you even have no idea about. In the case of pre-construction homes, there is nowhere you will be required to deal with anyone’s mess be it the previous owner or anyone else. This is because a pre-construction home is new and you will definitely be the first person to occupy it therefore there is no way you will have to deal with anything from a previous owner. Once your pre-construction home is complete and you move in, you will enjoy life without any worries and misunderstandings with anyone regarding anything whatsoever. Don’t you see this gives you peace of mind when you start living in your home? This should be among the strong reasons that will push you to purchase a pre-construction home instead of going for a used house. It is better to wait a little longer and get something fantastic than rush and land into unnecessary problems that you could have avoided. The only way to avoid these problems is to settle for a pre-construction home. There is much more that this kind of development can offer and leaving it for anything else will be something that could make you regret it later.

  1. Higher resale value

Higher resale value simply means that the seller gets high profits as far as what they had invested is concerned. In every business or investment, the major goal is always making a profit. If you don’t make profits then you have no reason to continue with a particular business or investment. This is the same case when it comes to the real estate market. Investors and developers are always driven by the urge of making profits from the sale of properties. Because of appreciation in the real estate market, resale value is always expected to be high compared to the initial purchasing price. Higher resale value in pre-construction homes usually manifests itself at the time when you have decided to sell your home. If you purchase a pre-construction home, you will have to wait until the construction is complete and the house handed over to you. At that time when the house will be handed over to you, the market price of that house will not be the same as what you paid when buying it while at the pre-construction stage. The price at this time will of course be higher. If you decide to sell the house at that particular time, you will reap more than what you invested in the development. The profit margin will be higher and that is what means to have a higher resale value. If you move into the house and then sell it later, you will earn even a big profit compared to the price you bought the pre-construction home and the price you would have sold the house earlier. When you compare the resale value of a pre-construction home and that of a used or existing house, you will find that a pre-construction home has a much higher resale value compared to a used house. This is so because the profit margin of a used house is not so high because you bought it at a high price and therefore selling it at a very high price will be difficult since the prices appreciate by a small percentage. So if you want to reap high in resale, you should consider investing in a pre-construction home. This speaks volumes in regards to why pre-construction homes are better than buying a used house.

  1. Lower prices

Almost everyone enjoys paying less for anything they want. Any commodity or property costing less in the market will always attract a large number of people who will be willing to pay that low price instead of going somewhere else and paying more than that. That’s how things are and therefore no one wants to pay very high prices to acquire anything they want. As you know, in the real estate market properties tend to appreciate now and then. This appreciation means that the prices of properties keep going up every time. For instance, the price of a house last year will not necessarily be the exact price of the same house this year. This year will automatically have a higher price than what you would have paid last year because of appreciation. When it comes to used houses, you will pay a high price because you will find the houses when they are already on the journey of appreciation. What will make it worse is when the demand for houses is high. Here the prices will be so high to an extent that it will be so hard for many to afford to buy homes. In the case of pre-construction homes, you are more likely to come across a lower price which you will eventually find easy to pay. Pre-construction homes don’t cost a lot of money compared to used houses and therefore you can easily manage to purchase one. You are also more likely to get a discount when you buy a pre-construction home. The seller will give you a discount to encourage you to buy and in return, they will have money. They usually need this money so much so that they can fund other projects that they might be working on. So in short, they have no choice but to do all they can to acquire money and this means they will sell at discounted prices. These low prices and discounts are what will attract many people to purchase pre-construction homes. You should consider being one of those people and you will surely grab a nice deal. As for you, pre-construction homes in Toronto could be the deal for you if you are looking forward to living in a nice city. From this, you can see how pre-construction homes are better than buying a used house.

  1. Freedom to customize

Many people normally choose or like to have what suits them best. It doesn’t matter what kind of thing it is. The most important thing is suitability. Even when it comes to the real estate market, potential buyers get into the market with expectations of getting a house that fully fits them and caters to their needs. In instances where they find a given house not being of the required taste, some changes are usually put in place where possible. Talking of changes, in an already used house, it may be very difficult to make some changes so that you can have a house that suits you well. When buying a used house, all you have to do is to put up with what you will find in that house. Even when the rooms are too small or too large, you will have to live in them that way. There is no room for also making other changes like on the windows and doors. This is not the case when it comes to buying a pre-construction home. Here you can make changes to the floor plan until you have something that suits you well. You can suggest the rooms be adjusted to the sizes that you want. The number of rooms can also be increased or reduced depending on what you exactly want. The windows and doors can also be shifted to where you want them to be placed. Another thing is that you can also put other facilities like the kitchen and washrooms in the right place. When the house is finally completed, you will be able to get a perfect home that you actively participated in ensuring that it fits you in the best way possible. This is another big advantage of investing in a pre-construction home instead of buying a used house. You can’t let go of such an advantage that you cannot get anywhere when buying a used house. Put your savings together and get yourself a pre-construction home and you will live to testify how pre-construction homes are better than buying a used house. Just imagine being able to have a customized house that has everything in the exact place you wanted them to be. That is the real beauty of putting your money into pre-construction homes.

  1. You will enjoy an extended deposit structure

Payment of deposits is something common in almost every sector of business in today’s world. A deposit simply refers to a down payment that you make when purchasing something. This down payment usually signifies that you are serious about buying and that you have officially kick-started the process. This is the norm when it comes to the real estate industry. When purchasing a house you have to pay the deposit first before you can continue with the rest of the amount. In most cases, the deposit is usually about 20% of the selling price. When it comes to buying a used house, you will have to pay the 20% deposit instantly and in full. There is usually no bargaining on that. So before thinking of buying a used house you must have gathered the required amount of money. This is not convenient for those buyers who do not have the exact amount of money at hand at that particular time. When you decide to invest in pre-construction homes, you will find a different scenario that might favor you. In pre-construction homes, there is an extended deposit structure that gives you room to pay the deposit over some time. Here you are given the opportunity of paying the deposit in smaller amounts until you finish the whole deposit amount. For example, you can pay like 40% of the deposit on the first day, then pay 20% after three months, another 20% after six months, and lastly 20% after one year. This is very affordable and it gives you time to look for money if at all you didn’t have enough money. You cannot strain because everything has been made easier for you. The needs of buyers with less money have completely been taken care of and so there is no reason to worry anymore about how you will become a homeowner. Once you finish paying the deposit you can now shift your attention to the remaining amount which is 80% of the house price. With all these, there is no way you can fail to see why you should buy a pre-construction home instead of a used home. There are great things in store for you if you decide to purchase a pre-construction home. You can as well try a hand in pre-construction condos in Brampton if you indeed want to experience this.

  1. No worries about maintenance and repairs

Experiencing maintenance and repair issues is something common when it comes to matters to do with houses and other real estate properties. In most cases, when you purchase a used house, you are prone to meet issues regarding maintenance and repairs. In this case, you will have to deal with the damages caused by the previous owner. For example, you may find leaking pipes, broken windows, and blocked sinks among other repair issues. In an attempt to make the house look good, you will have to do all the repairs needed. You may also be forced to repaint the house if the walls are not in good shape. Remember you will do all these using your own money. In most cases, it is money that you had not planned to use in that manner. In short, it means you are incurring unplanned expenses. This is not good at all especially when you are experiencing financial problems. In some instances, you will also incur costs when it comes to maintenance of other areas within the home or compound if it has many units. The bottom line is that you will have to spend money on all of these requirements. Do you want to keep on spending that much? If you don’t then try pre-construction homes. In pre-construction homes, you do not have to worry about maintenance and repairs. This is simply because when you finally get the house, it will be very new and you will of course be the first person to live there. Therefore, you will not have to deal with damages caused by anyone. The house will be in a great state with everything new and good as far as condition is concerned. You will not spend any coin on repairs or maintenance for a long time. This will save you a great deal when it comes to additional expenses. Everything will be on warranty but if by any chance you experience some damage, the developer is the one who will fix that problem. You do not need to spend on unnecessary things and yet you can live somewhere and avoid those expenditures.  This issue of spending on maintenance and repairs proves to you that pre-construction homes are better than buying a used house. In this situation, you have to go for the better one and you will stand a better chance of minimizing your expenses once you become a homeowner.

  • There is a 10-day cooling-off period

When investing in pre-construction homes, there is something known as a 10-day cooling-off period. This means that the buyer gets time to know more about the development they are about to invest in. For instance, as a buyer, you will be able to review the purchase information. You can be helped by your lawyer, financial advisor, lender, and realtor. These professionals will make sure that you get it right when it comes to investing in pre-construction homes. During this time, you will also be able to do more research about the area and the builder responsible for the construction. You will get to know what type of builder they are and their reputation as well. This will enable you to make an informed decision concerning whether you want to work with them or not. About the area, you will have time to find out the pros and cons of living in that particular area. You cannot just live in a certain area for the sake of it. You must be aware of the good and bad things about that area before planning to move there. Once you know that, you will be able to weigh and make a decision. If the good things outweigh the bad ones, then you can consider going on with the purchasing process and eventually live there but if the bad ones carry more weight, you will be forced to abandon that deal and look for another one elsewhere. Some of the things that you will check include security and crime rates, economy, healthcare, education, and transportation among others. When it comes to buying a used house, you will not have this kind of opportunity. There will be no time for you to conduct such investigations. What you will face there are bidding wars that do not allow you to take time and do research. This means you will hurriedly purchase the house because you do not want to lose it. You can now see the difference between the two. Pre-construction homes will always be the best because the chances of purchasing a unit in a bad development are minimal compared to buying a used house where you will be rushing against time. Even if you decide to invest in pre-construction homes in Hamilton you will still have this option.

Conclusion

Pre-construction homes are the real deal as far as the reasons mentioned above are concerned. If you decide to buy a pre-construction home you will put yourself in a better place compared to one who buys an already existing or used home. So, therefore, don’t even make the mistake of thinking that pre-construction homes are not ideal or are way below the used homes when it comes to standards and benefits as well. That will be a great mistake because you will be denying yourself a better chance of enjoying the benefits that come along with buying pre-construction homes. Don’t wait to read again from an article or to be told but instead take action and purchase a pre-construction and you will get to know what it means to have one. The time has come for you to see for yourself and now the ball is in your court. You can even start with one of the pre-construction homes in Toronto.

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