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New Home or Resale - Start Smart

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By Venture Briks

New Home or Resale - Start Smart

April 12, 2020

Buying a new home versus a resale one is an age-old debate that never seems to conclude. While some buyers are particular about a new home, there is still a good percentage of people that prefer a resale unit.

If you too are confused between a new and resale home, you have come to the right place. If you’re determining whether to buy a new or resale home, following is comparative analysis of the two types to help you make an informed decision.

Design choices

Building a new home can give you the freedom to choose your own colours, fixtures and finishes, while buying a resale home means you’ll have to settle for someone else’s style choices. Pink roses might look nice on a special occasion but chances are you won’t be thrilled about seeing them on your bathroom walls every morning. And while you can always redecorate later, changing items like carpeting and cabinetry can be expensive—and such renovations are often put off for a day that never seems to come.

Storage

Today’s new homes offer floor plans designed to fit the way you live, with convenient features like walk-in closets, generous kitchen pantries, cabinets with pull-out shelves, and large basements that provide plenty of room for growth. With resale homes, especially older models, you may find that the storage space is limited or has been customized to someone else’s preferences.

Warranties

Brand-new homes includes a builder’s warranty, providing an added sense of security for years to come. Heating and cooling systems are also new and often covered under manufacturer’s warranties, so you won’t need to worry about replacing them right after you move in. On the other hand, many resale homes don’t come with a warranty included in the price. If a warranty is important to you, you may have to pay extra or negotiate for the seller to cover the cost.

Home Loans

Home loan for a resale property is quite similar to that of a new one. However, the list of documents would be lengthier as one has to present documents stating a change in ownership. And if the property is already on loan, then one has to submit those documents as well. While most banks and housing finance corporations give loan for resale properties, there are often restrictions on the tenure for repayment. When compared to a new property, the bank may insist on a higher down payment for the home loan. Also, some lending institutions do not give loans on homes that are more than 20 years old. Even if they agree, the tenure for repayment would be much shorter. And there you have it! We’ve covered the basics of what you should know about new and resale properties. Now all you have to do now is to analyse your requirements and finances and take a call.