Buying a home in Toronto is exciting, whether you buy a newly built house or an old fixer-upper house. It depends on the fact that you are buying the property as an investment or for your family settlement. Do you know which one is a better investment to buy in Toronto, an old house or a new house? Let’s review the difference between buying an old or new house in Toronto, and then decide which one is better to buy.
Everyone knows that buying a new house has plenty of advantages over an old house which has been built many years ago. A top Toronto real estate agent can help you know better the differences between buying a new house or an old house. Here, we describe the advantages and disadvantages of both to help you make better decisions.
Related article: Buying condo vs. house in Toronto in 2021
When you want to buy a house in Toronto, there are some important factors you should consider. These factors include the location and neighbors, your lifestyle, prices and fees, your budget and maintenance or renovation. Certainly, the Toronto real estate market trends are also another factor, but your realtorⓇ would give you the best advice considering the market.
First of all, I would like to briefly tell you about the cons and pros of buying a new house vs. old house to clarify some basic points.
Buying an old house: Pros
Old houses have their unique character and history. All the stained glasses on windows or woodworks are one-of-a-kind which cannot be found in modern houses. There is a history behind each and every element and detail in old houses.
Besides, most of the old houses have a backyard or front yard which can be a positive point for gardening enthusiasts. You don’t need to plant new trees or flowers, you can already enjoy sitting under the shade of large trees in the yard.
Buying an old house: Cons
The best advice for those who decided to buy an old house is: get ready for so much maintenance! Generally, old houses need constant maintenance and occasional upkeep or updates. The whole process of maintenance or sudden repair needs spending so much time and money.
Buying a new house: Pros
Buying a new house, especially pre-construction ones, gives you the chance to customize it based on your personal tastes and interests. It also ensures you that all the installed systems and appliances are completely up-to-date and does not need to be repaired or renovated any time soon.
When you buy a newly built house, you may have savings on your utilities too. New homes are built according to the recent environmental recommendations. They have more efficient glass, insulation and heating and cooling systems. So they are totally energy-efficient.
Buying a new house: Cons
If you buy a new condo, you might not get a big yard for gardening. The green spaces at the condo complexes are under the supervision and maintenance of condo management. For the newly built houses which have a yard, you should start to plant some sapling and seedlings.
Mostly, there is no unique characteristic about new houses, and sometimes contractors even build the same look houses in a row. The main point is everything is new and some unpredicted construction problems may occur sometimes, like cracks on walls because of the diverse quality of soil and material.
In general, both of them have their own benefits for you, the final decision must be made based on your personal and desired tastes and lifestyle. Consider these important factors before you make the final decision.
Related article: Are condos a good investment?
Location and neighbors
While you are deciding to choose between an old and new house, most important factors are location, neighborhood and even neighbors. Old houses are mostly built in an established neighborhood with good access to local amenities, schools and public transit. New houses are usually built in promising areas some of which have not been constructed yet, like unfinished roads or lack of greenspace in the neighborhood.
Another important factor is the neighbors. Old houses built in an established area have old residents which can somehow show you the character of the neighborhood. You can easily meet them and their community and decide. New houses are mainly built in modern neighborhoods with a specific demography. This may make it easier to decide.
Prices and fees
Most of the people have a certain budget when they want to buy a house. So, they must consider the price and related costs of buying a new house. Generally speaking, old houses are cheaper than new ones but there would be some additional costs. Besides the price of old houses is negotiable, but new houses are presented at a set price and are more expensive per square-foot.
Also, another flexible factor about old houses is the moving date. Old houses have a certain date for packing and moving, while new homes might have delays due to the construction process. Sometimes this unscheduled planning can be annoying and cost you extra.
The new house buyers should also consider paying for Harmonized Sales Tax and Goods and Services Tax. Sometimes this might need to be paid in advance and sometimes (depending on the house price) you may be given a partial rebate. However, this is an additional cost to consider.
Maintenance and renovation
Another important factor which has an impact on extra costs is maintenance or renovation. Obviously old houses, because of their age, need more constant maintenance than new houses. If you are considering buying a cheaper old house as an investment, you better keep in mind that old houses need too much extra work to bring them up to current standards.
They may seem less expensive, but the whole renovation or even redecoration will bring more costs in addition to the overall price. New houses have brand new standard appliances and systems, which can ensure you that no unexpected repair is required in the first few years. Furthermore, some new houses have home warranty which covers any repairs.
Therefore, both old and new houses have special ups and downs. So it completely depends on your own preferences. If you have enough budget, time and energy to renovate, old houses with their special character would be a good investment for you. But if you don’t have time and experience for maintenance, I recommend you to buy a new house.
Before you make your final decision, don’t forget to ask the advice of your real estate agent and use their experience and knowledge to choose the best property type and neighborhood.