New or resale home or condo in Mississauga?
Difference between builder's new home and a resale property in Mississauga
It is very important to conduct a thorough research before you decide to buy your Mississauga property. One crucial question is whether you should opt for a builder's new home or a resale home in Mississauga. Often people wonder about the benefits between the two.
To give both builder's new home and resale home credit, there are several advantages and disadvantages between builder's new homes versus resale homes. Technically, there are not many new subdivisions being built now in Mississauga. One can find several high rise condos by builders in and around Square One area instead, where people can purchase new builder properties one to three years in advance.
When it comes to builder properties in Mississauga, there are many advantages. First, you will be the first owner. No one will have lived in the property before you, so you have the privilege of choosing your own fixtures, fittings and finishes, tailor made to your taste and needs. The disadvantage here is that you are buying from the floor plan or site map with no inkling on how the finished property will look in reality.
Sometimes, the upgrades offered by the builder do not come up to your expectations of your dream Mississauga home. You always end up spending a lot more than what the new builder offers in his package.
A small Mississauga 1 BR condo of around 600 square foot, you might end up spending a minimum $4,000 to $6,000 dollars in buider upgrades alone, whereas for a 2,000 square foot home you can easily look at $10,000 to $20,000 or more in builder upgrades. There is no end to needs and wants. Apart from the above upgrades, there are also additional closing costs discussed below.
Difference lies in design and layout
The basic difference between a new builder home versus a previously owned home is in the design and layout. Newly built homes and condos are often trendier and offer the latest fittings, fixtures and finish. However, a similarly upgraded pre-owned home/resale home can offer you equally good value.
The best part is that as a buyer you are exempted from paying additional costs to buy the latest upgrades as the cost of resale homes include all upgrades, appliances etc.
In most cases new builders do not provide appliances, air conditioning units etc.So if you were to buy a newly built home, you are looking at extra expenditure in addition to down payment. These expenses will be required for builder upgrades and additional home closing costs which are discussed below. You do not have to pay for these extra costs when you invest in a re-sale home. Builder homes also don’t come equipped with finished decks/patios, landscaped rear and front yards etc.
Closing costs of a new builder home or condoBefore you invest in your Mississauga property, in a builder new home or builder new condos, it is necessary for you to take the help of an experienced real estate agent to evaluate both expected and unexpected closing costs. One unexpected home buying expense that many first time buyers may not be aware of is the new builder closing cost that can add up to twice of resale home. Builder closing costs can be as follows:
- HST on property price if not included (rebate could go to the builder and is often reduced from the home price)
- condominium reserve fund (condos only)
- water/ hydro meter installation charges
- paving holdback, landscaping/ tree planting
- TARION warranty fees (Ontario New Home Warranty)
- school/education levy
- subdivision damage deposit, subdivision grading deposit
- legal fee relating to mortgages arranged through the builder
- vendor's lawyer insurance levy surcharges
- HST on extras and appliances, realty tax deposits
- upgrades from builder standard finishes etc.
Other costs may include condominium occupancy fees (for condos only), furnishings, appliances and repairs, if any. Caution! The above adjustments can add up to thousands of dollars, if they are not properly reviewed and capped.
Advantages of buying a builder's condo with Team KaliaWhen buying your builder home or condominium with us, you will receive a free review of builder's agreement of sales and disclosure documents by an expert real estate lawyer.
- We make sure that your investment is protected and you save more.
- We will also check out the builder’s credentials and prior home/condominium building projects to make sure you buy your Mississauga home from reliable sources who look into your concerns during pre-delivery inspection.
- We do a thorough check on the builder’s previous delivery records. Usually, the builders have the right to extend the closing date and make changes in area, layout and finish which may affect your plans. By looking into the builder’s past records, We make sure builders play fair and adhere to the agreement as discussed with you.
- We helps you put a cap on further additional charges so that the total amount does not exceed the original purchase price by an excessive margin.
- Builders often aim to make profit from upgraded home finishes. We step in to advice you on how these upgrades can help your home or condo enjoy a higher re-sale value or if they will make any difference at all. Without the help of an experienced real estate professional, such details may be impossible to evaluate.
- We also help you prepare for typical monthly costs incurred with home ownership such as property taxes, mortgage payments, condo fees (for condos), utility costs, maintenance and home insurance etc. that most first time buyers may not be aware of.
- At every step when Team Kalia is by your side, the decision between a new builder home and a resale (pre-owned) home in Mississauga and surrounding areas becomes easy and hassle-free for you.
Contact Team Kalia for Buying Resale or New Homes and Condos
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