I have often written about the many benefits of buying a new construction house or condominium over a resale one. And now there is another interesting way to look at your decision. In late June, Missing Middle Initiative, which addresses the challenges facing young urban Canadians looking to join the middle class, published a report entitled Boosting Demand for New Homes is Supply-Side Policy. This report is fascinating, as it shines a different light on supply and demand.

Peace of mind

On one hand, we need enough supply to handle demand – but remember that there is no new supply without demand. In other words, we here in Canada need policies that will increase supply, keeping demand in perspective. Many people think the recent federal step to cut the GST for certain new-homebuyers will simply boost demand and cause inflation, the opposite of which is true. Keep in mind that resale home sales satisfy demand without increasing supply, which translates to higher prices. New houses and condos, on the other hand, serve to increase supply.

Enjoying peace of mind from a new home warranty is a major reason to choose new. So often, resale homes involve a lot of expensive repairs and refurbishing after moving in. The seven-year warranty on new houses and condos takes effect when the owner takes possession and covers major structural defects. There are four main types of warranty coverage during this period including deposit protection, delayed closing/occupancy coverage, condominium cancellations and financial loss coverage for contract houses. All of these are desirable in what will likely be one of the largest financial investments of your life. Visit tarion.com to find out more.

Advanced technologies and materials

In addition, with the Ontario Building Code being updated regularly, you know your new home or condo is built with the most advanced technologies and materials. This is critical to the value and longevity of your purchase. And if you decide on a new condo, remember that you will have elegant amenities under your roof, such as fitness facilities, theatres, entertainment spaces and rooftop terraces. With new construction residences at varying stages of finishing, you also have a wide parameter when it comes to selecting a move-in date.

Aesthetically speaking, our new homes and condos today come with incredible standard features, many of which used to be considered upgrades. And oh, the upgrades. Your new home or condo will be beautiful, regardless of your budget. You will also be the first to live in your surroundings, which means a fresh, clean start in your new digs. Plus, if you purchase early enough in the selling process, you will get to choose those standards and upgrades, personalizing your surroundings so that your purchase will feel like “home” the day you walk in for the first time.

As I have said many times in the past, buy new, and buy now. It’s good for you and the economy.