In a real estate market where every dollar counts, making a smart investment in a new home is more important than ever. Consider this: in 2021, the average price of a new home in Alberta was $446,300, while the average price for an existing home was $425,200, just 5% cheaper.
And the benefits of a new home go well beyond the price tag. From customization options to energy efficiency and long-term value, choosing a new home is a savvy decision with lasting rewards.
Building equity and long-term value
When you buy a new home, you can build equity from Day 1. Equity is the difference between the value of your home and the amount you owe on your mortgage. As you make mortgage payments you pay down the principal balance of your loan, which increases your equity.
Here are a few reasons why a new home can help you build equity faster:
- New homes are generally valued higher than older homes: this is because new homes are built to the latest building codes and standards, and they are often located in desirable neighbourhoods.
- New homes come with a warranty: this means that the builder is responsible for any defects in the home for a certain period of time. This can protect you from having to pay for repairs or replacements.
- New homes are often energy-efficient: this can save you money on your energy bills, which can free up more money to put towards your mortgage payments.
Lower maintenance and repair costs
When buying a home, it's crucial to factor in maintenance and repair costs. Opting for a new home can yield long-term savings due to reduced maintenance requirements and repairs.
New homes boast modern materials and technology, resulting in lower maintenance needs and cost savings. Energy-efficient appliances and insulation help keep energy bills manageable, while durable materials like vinyl siding and composite decking demand less upkeep compared to traditional alternatives.
Additionally, most builders provide warranties and guarantees for new homes. These warranties cover various aspects such as the home's structure, appliances, and HVAC system. Having a warranty offers homeowners peace of mind, knowing they are protected if any issues arise.
Energy efficiency and cost savings
According to several studies, newly built homes are on average more energy-efficient than traditional homes. This is due to several energy-efficient features often being included in new constructions. As a result, this helps you to save on utility bills and increase the overall value of your home.
Some of the most common features include:
- Insulation: high-quality insulation in new homes helps maintain comfortable temperatures year-round, resulting in substantial energy savings.
- Windows: energy-efficient windows in new homes minimize heat loss during winter and heat gain during summer, leading to significant reductions in energy consumption.
- Appliances: new homes come equipped with energy-efficient appliances like refrigerators, dishwashers and washing machines, which consume less energy compared to older models.
New construction homes may also have other energy-efficient features, including:
- Solar panels: homes with solar panels can reduce reliance on grid electricity and generate their own power. Brookfield Residential is now offering solar panel upgrades on single-family homes.
- Water-saving fixtures: low-flow toilets and shower heads in new homes help decrease water usage.
- Green landscaping: new construction homes may feature environmentally friendly landscaping with native or drought-tolerant plants.
Customization and personalization
New home constructions give you the freedom to customize and personalize your living space. From selecting paint colours to choosing flooring options, homeowners have the opportunity to create a home that truly reflects their style and vision.
You can also choose finishes, fixtures and floor plans that align with your lifestyle. Whether it's an open-concept layout for entertaining or specific fixtures to enhance functionality, homeowners can tailor their home to suit their needs.
Home builders often provide incentives or options for customization. These can include upgrades at no additional cost or the opportunity to select premium features. By taking advantage of these offerings, homeowners not only personalize their home but also increase its overall value and their enjoyment of the space.
Peace of mind and modern amenities
New communities come with a range of amenities. These include parks, playgrounds, walking trails, and outdoor spaces for relaxation. Access to high-quality community spaces such as pools, tennis courts, and gyms can increase property values and improve the marketability of homes in the area.
Inside many new homes there will often be lots of modern features to improve quality of life and reduce your risk of damage and loss. Some of these features can also help you save money by reducing the costs on your home insurance rates.
Conclusion
Overall, new construction homes offer a multitude of benefits over older homes. With modern amenities, enhanced security, and advanced features, they provide a superior living experience. If you're considering a home purchase, exploring new construction options can elevate your living experience and provide peace of mind.