7 Benefits of Building vs Buying a Home in Canada

The question of whether we’d be building vs buying a home didn’t come up until well into our search to buy our first home in Canada. Somewhere in the back of my mind, I suppose I thought buying a new-build home was something people with infinite financial resources do. Well, maybe not infinite, but just like how I thought investing wasn’t something average people do, you get the picture. But buying a home was a goal of ours, and when the inventory in our city was coughing up the perfect fit… well we decided why not get something brand spanking new.

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When we were planning how to move to Canada a few years ago, we knew that homeownership was the next big thing after migration.

1. Choosing Your Location

Building vs buying a home means more flexibility in deciding where it is built. You can select a cul-de-sac, avoid a corner lot, or choose the direction your home faces. With a pre-built, you have to take it all as is. I mean, you can’t very well move it across the street if you find that your kitchen or living room doesn’t get as much natural light as you would like.

2. Modern Design and Styles

With a new home, you get current styles and aren’t dealing with old building codes, more energy efficiency, technology, etc. Most older homes were built using what was modern or popular in that era. If you aren’t into that style, even if you buy an older home, the wheels will probably start turning in your head about how you intend to upgrade or update things, which brings us to our next point.

View of an all white kitchen in a new build home. Photo by Shandean Reid, strategic communications advisor and lifestyle blogger in the 7 Benefits of Building vs Buying a Home in Canada blog post on www.shandeanreid.com

3. Making Selections

Building your home vs. buying means you have a choice of at least some fixtures, appliances, and so on. If you are building a completely custom home, all the options are yours, which is very exciting. For example, we want nothing to do with upper-level carpets, especially in a pre-owned home. House shopping quickly taught us that, despite our strong feelings about them, they weren’t likely to be an easy find.

4. Low(er) Maintenance

My research included horror stories of new buyers needing new roofs, plumbing, or major appliance replacement days, weeks, or months after buying their new (to them) house. In addition to the warranty on a new build, all new appliances, with their warranties, drastically lessen the likelihood that we’ll need expensive repairs or replacement within the first few years. It’s not foolproof, of course, particularly if the house isn’t built correctly in the first place. But, as we’re optimists in this scenario, it’s a benefit.

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5. More Time to Prepare When Building vs Buying a Home

Extended closing time frames accompany most pre-build purchases, allowing builders to construct the house. I made the best of our building time of one year. Although we planned our home purchase well to prevent a total financial wipeout, purchasing a home for the average person or family is a massive hit. That year allowed us to lock in a home price (went up) and rate (went down). We knew our payment would be x amount several months out — a plus of going fixed, but another conversation for another day.

Overhead view of a living room from the stairs in a new build home. Photo by Shandean Reid, strategic communications advisor and lifestyle blogger in the 7 Benefits of Building vs Buying a Home in Canada blog post on www.shandeanreid.com

So, we planned for it. We mentally and realistically adjusted our monthly budget to accommodate the increase. We saved (more) – knowing there was some new furniture we’d want and need to buy – built up the sunk funds and used every available opportunity to save money, that is, tax-deductible and tax-free accounts, etc.

6. Community Development

New builds are often located in newly developed or developing communities, and consideration of the location – that is, distance from necessities, transportation, and convenience to amenities like schools, parks, community centres, entertainment, and shopping centers, etc.- comes into play well before lots are parcelled and sold.

A woman’s hand reaching for tiles on a shelf in a hardware store. Photo by Shandean Reid, strategic communications advisor and lifestyle blogger in the 7 Benefits of Building vs Buying a Home in Canada blog post on www.shandeanreid.com — Choosing tiles for building a home

7. Tax Rebates

In Canada, at the time of this blog post, provincial and federal tax rebates are available for individuals who purchase sustainably built (or sustainably renovated) homes, depending on their province and the cost of their homes. Who says no to less taxes?

So, deciding on building or buying a home?

Arguments can certainly be made for both, but building had more than a few advantages. I hope you’ve learned a few to make your decision more informed.