Is New Construction a Good Investment Property in Ontario, Canada?
When talking about getting a house or property as a newbie buyer or investor, many alternatives are available in the real estate market. However, if you want to acquire a new construction property in Canada, it can get hectic. On the brighter side, the real estate market is booming in Canada, thus, providing you with ample opportunities.
There are plenty of factors that need to be considered when choosing a new construction property. This ranges from the demographics, price of the property, location, and the various associated taxes. Also, simply buying a property is not enough, and we need to contemplate whether we are making a good investment for the future or not?
Building New Properties - Ontario's Proposal
Since Ontario is Canada's most densely populated province, there is always a prevailing need for new houses and properties. The aspiring home buyers are moving towards Ontario sub-urban cities like Brampton, Caledon, Pickering, Oshawa, Ajax, etc. to fulfill their housing dreams.
According to the predictions made by some real estate experts, Ontario will need around 1.5 million new homes in the next ten years, and 900,000 new homes will be needed for new residents. If the target is achieved, it could be instrumental in ending the province's housing crisis.
Not only will it help reduce the supply crunch in the housing market, but would act as a reservoir if any unconditional population spike happens in the future.
New Construction or Pre-Construction Homes - Pros
There are many benefits when it comes to new construction homes. Like the freedom to design all by yourself and many more. Now let's look at the pros and cons of a new construction home. To begin with, here are few advantages of buying a new construction house:
1. Starting Your Search from Scratch
There's more to it than just moving into a house where no one has ever resided before. It is all clean, and all the equipment at your place is thoughtfully placed for your convenience.
Although it is not a prerequisite, however, if you like your personal space to be tidy and don't need some weird surprise from a resale house, it is suggested that you go with a new construction home.
Having a say over your house's design is basically what every homeowner needs. No contractor or interior designer knows your preferences better than you. Acquiring a new construction house allows you to choose everything from the color on the walls to the flooring structure.
All these customizations will cost you a fortune if you decide to have them installed in a pre-owned house. If you are an interior enthusiast and love to design your place according to your tastes, you will like buying a new construction home.
3. Less Upkeep Costs
Newly constructed homes generally require very less maintenance. It's not like they are completely prone to repairs, but the likelihood of getting your plumbing system changed or having a dripping roof is less.
Furthermore, most construction companies include a variety of warranty coverage with their housing, including a short-term full structure protection plan and a longer-term external warranty. Of course, there is always a negative side to every positive thing.
New Construction or Pre-Construction Homes - Cons
Some of the disadvantages of option for a new construction home are:
1. Choosing the Right Builder
Given the laws, expertise, and choices available to builders differ, purchasers' experience with new housing varies. It's possible that you may get a builder that has very little or no skills and has a minimal amount of experience under his belt.
When selecting a contractor for your new construction residence, look further than the images on their webpage and focus on finding additional information to make sure you're making the right decision.
2. Costly Upgrades
When looking for a new construction home, the first valuation you see is the estate's initial price. It includes the establishment itself (with no elective add-ons, such as spare rooms or first-floor bump-outs), as well as the lot the residence will settle on and the landscape design that will surround it or not.
To give your house a look it deserves, you need to spend some serious money on upgrades. And all these upgrades will lead to a rise in your home's overall price.
Should You Buy a New Construction Home?
The experience of buying a new home is very crucial to a homeowner. Gather all the statistics, perform your research, and think accurately about what you want when purchasing a home now and in the future to determine if it's the correct option.
Add an expert professional with you to the meeting with the contractor's salesperson to have somebody to endorse for your preferences. The more you know before you start, the better you'll be able to maneuver the sometimes difficult process of buying a new house. Keep in mind all the crucial things before buying a pre-construction house.
What do you think about buying a pre-construction or new construction home? Do share your opinions on the same.
New construction can be a good investment property in Ontario, Canada, as it offers modern amenities, higher energy efficiency, and the potential for long-term appreciation in value. It is recommended to seek advice from a real estate professional before making any investment decisions.