Selecting a home type

Don't be pressured into buying a home that is not right for you - there are a lot of choices out there. Here are the Pros and Cons of the various options as well as a comparison of resale homes vs. new homes purchased directly from the builder.

Condo Apartment

Pros:

• Lowest purchase price, lowest taxes
  
  
• Virtually maintenance free — no snow shoveling or lawn mowing.
  
  
• Convenient for singles, childless couples and empty nesters.
  
  

Cons:

• Lower resale value, hardest to re-sell and can be difficult to finance with low down payment.
  
  
• Can have large maintenance fees that can substantially increase carrying costs.
  
  
• No private yard so you can't enjoy backyard activities such as barbecuing, gardening, etc.
  
  
• Share common walls with neighbours — if they're noisy you're out of luck.
  
  

Condo/Freehold Townhouse

Pros

• Lower purchase price and taxes than semi or detached and less maintenance.
  
  
• Better resale value than condo apartment.
  
  
• May have a backyard.
  
  

Cons

• Lower re-sale value than semi or detached and harder to re-sell.
  
  
• Don't own the land — the most valuable asset (unless freehold Townhouse).
  
  
• Share common walls and close to neighbours.
  
  

Semi-Detached

Pros

• Most privacy at least cost — great for first-time buyer.
  
  
• You own the land — the appreciating asset — bricks and mortar depreciate.
  
  
• Good resale value and easy re-sell.
  
  
• Easy to finance at best rates.
  
  
• Usually has larger yard than townhouse, more backyard activities possible.
  
  

Cons

• Share a common wall with neighbours.
  
  
• Higher price per square foot of living space than a townhouse in a similar location.
  
  

Detached

Pros

• Best resale value and you own the land, the main appreciating asset.
  
  
• Most privacy, least noise from neighbours because there are no common walls.
  
  
• Most desirable type of home with greatest perceived value.
  
  
• Lower priced detached homes tend to sell quickly because of the combination of prestige and affordability.
  
  

Cons

• Highest purchase price and property taxes.
  
  

Re-Sale Home vs. New from Builder

As a first-time buyer, another major decision you may have to make is whether to purchase a re-sale home or a new home directly from a builder. Both options have their advantages and disadvantages. Here's how they compare.

Re-Sale Home

Pros

• Lower prices because of some wear and tear (which varies greatly — check closely!)
  You get the benefit of upgrades (finished basement, pool, etc.) at a depreciated price.
  
  
• Established neighbourhood, current neighbours, etc., are known entities although they can change.
  
  

Cons

• Home has been used by others.
  
  
• No warranty for repairs required by law, although it can be made a condition of purchase.
  
  
• If existing décor is not to your liking, it can be expensive and time consuming to change.
  
  

New Home from Builder

Pros

• You are the first occupant and the house is yours to decorate as you wish.
  
  
• Purchase price includes colours, design features, etc. that you select, usually with negotiable upgrades.
  
  
• Protection from construction deficiencies is usually required by Provincial Law.
  
  

Cons

• There is often an extended period of time without lawns or paved driveways, and with dust from unsodded areas and construction traffic.
  
  
• There can be problems with permits or trade strikes that prevent timely completion and occupancy.
  
  
• Defects in construction may not be addressed promptly.
  
  
• Some closing costs apply to new homes that do not exist with resales.