As a home buyer, one of the decisions which you cannot delay is deciding whether you want to go for a new house or an already owned one (resale)? If you opt to buy a new home, you have the option to own it even before the construction process starts, or in other words, you can buy a “presale.” Presale comes with multiple benefits, and here are some of them.
Top 5 Advantages Of Buying A Presale Home
1. Exemption From Property Tax
A home buyer can save up to $13000 in the form of property transfer tax exemption on a newly constructed home worth $750,000 or below. However, the buyer can get this exemption if;
- They are permanent residents or citizens of Canada, and
- It has been their primary residence for a minimum of one year (starting from the date of purchase).
2. More Time To Accumulate Funds For Down Payment
When you buy a presale home, you only have to start with smaller deposit payments. This is not less than a luxury for buyers as they will have enough time to gather funds for down payments. In fact, many institutions are offering additional security and fixed interest rates for up to 36 months. That means, even if the interest rates go upward before the closing on your home, you will be protected from an increase in interest rates.
3. New Home Warranty Insurance Program
As per the HPO (Homeowners Protection Office), a third-party home warranty insurance must cover the houses built by Licensed Residential Builders; this insurance is also termed as the 2-5-10 Home Warranty Insurance Program. This insurance program covers;
- 5 years on building envelope
- At least 2 years on material and labour
- 10 years on building’s structure
You cannot have this luxury in a resale situation.
4. A Brand New Home
Is there anything better than a new home? Surely not. Driving a brand new car is always exciting, so is stepping into your brand new home. You will be the first one to use the mechanical systems and appliances of the building. This also means that “everything” will have fresh/new warranties, and there is no fear of immediate repairs. Can you get this benefit in buying an old home? Probably not.
5. Personalized Customization
Presale purchases (during early construction stages) also allow you to request your buyer for customization. For instance, you can ask for a different colour, change in design, or other customizations the developer offers.