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 and a lot of pressures
to buy. 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
Condo/Freehold
Townhouse
Semi-Detached
Detached
Re-Sale
Home vs. New from Builder
New
Home from 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.
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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
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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.
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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.
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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.
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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.
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