Which is a Better Investment To Buy, an Old or a New House?

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Which is a better investment to buy, an old or a new house
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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.

old house or a new house

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.

old house or a new house for investment

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.

old house or a new house for investment

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.

old house or a new house for investment

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.

Conclusion

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.

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Mark was amazing to work with. He anticipated my questions and needs from start to finish, and I trusted him completely. It was obvious that he had my best interests at heart. Mark’s personality made the search for a new home fun, but I never doubted his seriousness in finding me the best home he could. He went to bat for me without hesitation and found me exactly what I needed, taking care of every detail. It made the process exciting, enjoyable and stress free. I would highly recommend him to any future home buyers or sellers!

Breanne M

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Ari is the most pleasurable person I have ever dealt with before. He never once pushed me towards anything I didn’t want, which is rare in this space and really cared about what I really wanted. You can really feel it from his actions. He catered his service to my needs. He was very patient, hard working, diligent, on top of things and real with me about the situation of the market. The quality of service was very high, not just for this industry but in general. He guided me personally through the contract process in person and made it absolutely painless. Such a reliable guy anybody would refer to their friends. I would definitely recommend Ari!

Bo L

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communication throughout the entire process making it smooth, transparent and timely. I recently got transferred to Toronto for work. I was scared I was not going to find a place in Downtown that met both my expectations and my budget, as the Downtown market is highly competitive. I am thankful that Ari took the hassle out of the apartment hunt. He delivered great listings that met and exceeded my expectations, he was always on top on arranging viewings and willing to make accommodations to fit my busy schedule. This allowed me to find a desirable place on my first week here in Canada. I appreciated his time and dedication, it was such a relief knowing that he was invested on my best interest. I can’t recommend him enough.

Juanita

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Ari was quick to understand my needs and steer me in the right direction. His professionalism and warmth made the process of finding a suitable home a lot less stressful than it could have been. He quickly arranged times to visit places I was interested in, which was one of the reasons I could seize a good deal and get a nice home in a good location. He is patient, friendly and knowledgeable and he definitely provides an above average service. I have nothing but good things to say about him and recommend him to everyone looking for a realtor.

Dario Machado

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Dear Ari, I wanted to thank you for finding me my dreamed condo ! Ari is a very reliable and dynamic person, thanks to his professionalism he found me the perfect condo in less than 24 hours !! As a newcomer in Toronto, I was not familiar with renting process but Ari made it easy, fast and really stress free for me, he was very helpful. I am really happy for the high quality of the service he provides and I will recommend him to everybody without a doubt.

Elodie

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Oh Ari, In this crazy game of downtown real estate it is quite difficult to find an agent that is timely, true to his word, and a joy to be around. Not only did you make the search process very easy but how quick you put everything together when I was ready to make an offer was phenomenal. The online process really saved me a lot of time and explained everything very well. Most of all though your attitude and humor really made things enjoyable and you were very accommodating to whomever I brought with me on my viewings. I would definitely refer Ari to anyone looking for property downtown. He won’t disappoint.

Abdullah

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Hey Ari, I’ve had a few experiences with agents trying to find me a unit in the past, and not all of them I’ve had a helpful experience with. Ari was very friendly and attentive to my needs. It was clear he understood what I was looking for and provided me with lots of great options! He found me a great unit under my price range that I love and made the process of applying and renting it so easy. He did all the leg work and the only thing he needed me to do was sign my name. If anyone is looking for an agent to help find them a place to live I’d send them to Ari without a doubt.

Megan D

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