Are you ready to start the next stage of your life in Toronto? Maybe you are moving to the big city for the first time and you want to start things off the right way. Perhaps you have already lived here for several years but you are ready for a new living space to meet your changing lifestyle.
Finding a home in Toronto will be an exciting journey, but you may be wondering what your options are for residential spaces. Within the city and the surrounding area, you can find many different properties to live in, including apartments, townhomes, condos, single-family homes, and multi-family homes.
If you are struggling to find the perfect fit for you and your family, perhaps you are seeking a perfectly customized home. This may only be possible through building a new house. A newly constructed house is an ambitious endeavor to attempt when you plan to move to Toronto, but the benefits could outweigh the costs for the right person. Let’s discuss some of the pros and cons of a new construction home in Toronto.
Pro: The Ability to Design It
The main appeal of a new construction is the customization possibilities. When you look for a home that is already built, you are limited by the supply in the local market. If none of the homes meet your specific needs, then you will either have to lower your expectations or commit to bug upgrades once you move in. With a new construction, you can avoid this issue. You will be involved in the design of the home from the start, so you can ensure that all your desired features are included as long as you can afford them, and the custom home builder you work with can manage it.
Con: The Higher Cost
Building a new structure is going to be expensive. Buying a traditional home means you are only paying for the property and its accompanying structure. For a new home, you also have to pay for the labor to construct it. This can make your new home cost thousands and thousands of dollars more than a comparable property that is already built. You will need to have a larger down payment saved up and be able to afford the higher monthly payments if you roll the labor costs into a loan.
Pro: Cheaper Insurance
Insurance is essentially a bet that something will go wrong. You pay a monthly premium and if something bad happens that is covered, you will not have to cover the costs out of pocket. Since new homes are less likely to experience these issues, insurance policies tend to be cheaper. While you should still shop around for the right home insurance, you can probably count on finding a much cheaper policy than most homeowners will have with older structures.
Con: Longer Wait Time
If you are looking to move soon, then a new construction is the wrong way to go. From the moment you decide to build a new house until the day you move in, it could take almost a year or even longer. Some who are moving to Toronto may not have the option to wait that long, perhaps due to a current lease contract or a job that is starting sooner. Committing to a new home is going to take a long time, so be prepared for the wait.
Pro: Lower Maintenance/Utility Burden
The older a home or component is, the more likely it is to need repairs. This is true for both utilities and structural components. If you buy a home that is already built, you could be inheriting some old components that will soon begin to break down or stop working as efficiently. Newer homes tend to have a few years before repairs become necessary since everything is new. As long as the construction and installation phases are done well, your maintenance costs should be low, and your utilities will be more efficient.
Con: Finding Land
You cannot build a home unless you have a piece of land on which to build it. This is a step in the process that many buyers overlook. It can be difficult to find a piece of land that you like and is in a good location. You will also have to buy that land before construction can begin, adding to the upfront costs of a new home.
Is a Newly-Constructed Home in Toronto Right For You?
Before you make any decisions, make sure you evaluate your ability to commit to a new construction. Do you have the budget for it, especially since it will be more expensive than most other residential options? Are you willing to put in a lot of effort in designing the space and collaborating with the contractor? Can you wait that long before you move into the completed home? A new home might be the perfect solution for your move to Toronto, but only if you are prepared for the complexity of the process.
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