Price is generally the reason people start searching in the resale market. And, at first that appears logical. In general, resale home prices range from 15% to 20% less than new homes of similar size and style. However, that’s not always true in today’s market conditions. A large amount of new lot supply and an increase in new “value priced” condos has kept a lid on prices and made it possible to buy a “new” home for as little as 5% above resale prices – certainly in the entry level segment. Virtually a dead heat when it comes to price. A key consideration is that you must pay GST on a new home while you do not pay it on a resale. However, the rate of GST is subsidized modestly for homes under $450,000 so
the impact is lessened somewhat.
At the end of all this inconvenience and expenditure you are still essentially living in an older inefficient home. The technology integrated into today’s homes, particularly regarding energy and water efficiency, can save you about $700 PER YEAR over
an average sized used home. And, that’s at today’s resource prices! Since 2000, oil prices have risen over 400%, utility rates have gone up 115% and it’s reasonable to assume this trend will continue in the future. So, purchasing a new home built to the highest sustainable standard is not only “smart” for your family and the planet, but is essential for the
health of your budget.