Investment: New Vs. Resale

When you’re considering an investment, you’ll want to look at all options. Are you looking to buy, renovate and flip? Are you hoping to purchase something ready to go with 1 or maybe 2 rentals within a home or unit? Or are you considering a new build, with a more delayed payment schedule to stretch out the deposit?  It can all be a bit overwhelming. The good news is there are options for everyone.

New Builds:

The thing people love most about new builds is that everything is… you guessed it NEW. It’s a fun experience being able to choose your layouts, upgrades, updates and watch the project unfold. For the first timer or experienced investors, the deposit structure is also very appealing and less intimidating than jumping right in. Many builders will offer a payment schedule over one or two years, allowing you to plan ahead and pace your cash flow. For seasoned investors who may already be stretched thin and unable to jump into another resale, this could be an opportunity to move forward with the next purchase and build their portfolio. Often by the time you take possession,the property has already gone up in value, giving you an option to immediately sell and make a profit  up front:

Here are some things you should consider with a new build:

When you’re buying off paper plans, you might not get a chance to see the area you’re purchasing in. It’s a good idea to get to know the area and find out what’s coming up in the surrounding community. We also strongly suggest having your local Realtor go through the process with you. Why? Sometimes the price on paper is actually not as great as buying resale, depending on the market. Our team can also help you with decisions on layout (we’ve seen them all & we know what works), location, number of bedrooms, whether or not to get that second parking space, and what upgrades are worth the spend for better ROI. When you’re buying new, you also need to consider the hidden costs. Before you jump in, be aware of HST on new builds as an investor, as well as the rebates, and when you may or may not be eligible. Try to get an understanding of some of the additional closing costs, including levies that a lawyer may want to make sure are “capped” before you firm up a deal. If it’s a condo you’re purchasing, you’ll have a ten day cooling off period where your lawyer can review all these details with you before you firm up. You’ll also want to understand initial “occupancy” fees vs the actual closing date. Get familiar with what pricing is happening in the area. Do you foresee yourself flipping it or holding onto the property for a few years, and using it as a rental? Why not let someone else help you pay the mortgage? Though nobody can claim to have a crystal ball and predict the exact outcome, it’s nice to have options.


If you have a large enough deposit and can be approved to jump right into a resale,  it’s also an excellent option. You’ll be purchasing in a market that is current and real so you’ll know what to expect. If you’re looking to rent it out immediately, you’ll have immediate data  as to what’s happening in the market and the minute you close on a property, you’ll be making money, both through the rental income as well as the equity. This may be more attractive to someone who would rather not have the money sitting in the builders bank account while they wait for a project to be completed. You’ll also, no doubt, have had a chance to see what the street looks like and how the community has already evolved, so no big surprises there.

Things to consider with a resale:

If it’s a hot market, you may not be able to get a home inspection, and even with a home inspection, there may be hidden defects that the seller is unaware of. Budget for surprises the minute you take possession. If you’re looking to flip, then make sure you know your numbers and your budget to make all that effort on renovations worth your while. Making sure you know your numbers is also important if you’re hoping to rent out your property. Don’t make assumptions and definitely budget for maintenance (the big things and the small) so that you’re more than able to cover these costs.

Condo Vs. Freehold. When it comes to condominiums, sometimes the monthly maintenance fees have people cringing. But there are pros and cons to both condos and freehold. If you have a condo, then most of the general maintenance on the property will be handled by the condo corp. and outside of the odd appliance that may need replacing, you’ll potentially have to be less involved in the maintenance of the property. In a freehold, you’ll be managing all that, but you’ll stand to make more equity long term, and depending on the condition of the property, this may not even be an issue.

Bottom line is there are lots of options for everyone when it comes to investing in real estate, but it’s important to have someone on your side to help you through the process. Have questions? We’d be happy to chat and go through the options so that you can see if investing is a good opportunity for you!