Is it better to build or buy a home in Winnipeg?

BY REID BOLES, REALTOR

We often get questions about the pros & cons of older homes compared with new builds— but the answer always depends on the person asking the question— as well as the evolving supply and demand of real estate and construction costs.

The first factor in determining the whether a new build or a resale home is best for you has to do with your personal situation. How long you are planning to stay in the property? Will it fit your needs down the line with a growing family? What is important to you about a community? What is important to you about a home? These are the questions that will help contextualize the information below.

What are the pros of building a home in a new area?

Building a home in a new area is great because all the roads, infrastructure and houses are modern and brand new. Your home is also brand new and exactly to your taste. New homes offer mandatory warranties which gives the buyer peace of mind on top of the fact that their house has never been lived in.

The cost to get into a brand-new community is usually lower than it will be in a few years once the community is complete and the property values start to rise as the area becomes more desirable.

In a new community, everyone is new and people tend to be very friendly and eager to create relationships and build community, so it can be easier to get to know your neighbours and make friends.

What are the downsides of building a home and living in a new community?

On the flip side, the trees and green spaces are all brand new as well, and will take many years to mature and create a canopy for shade. In your own backyard you will also have to complete the landscaping, fencing, and also deal with a considerable amount of noise and dirt while the area builds up around you. The infrastructure will likely not be fully completed right away either— schools and community centres are the last to come and can take many years of waiting.

When it comes to a new home there are additional costs above construction costs that will require upfront cash that you might not need in a resale home— don’t forget to factor in the costs for AC, blinds, appliances, decks and landscaping.

Another point that isn’t necessarily a downside, but is something to consider, is that the timeline for completion of a new home is usually 10-12 months, whereas the usual timeline to possession for a resale home is 2-3 months.

What are the advantages of buying an existing home in a mature area?

Resale houses are all about the maturity of the area and the immediate amenities. Schools, parks, churches and community centres are all built, and you know exactly what they offer in terms of location, hours, and services. Generally mature areas are built closer to downtown, meaning a shorter commute to and from work, and easier access to restaurants and entertainment.

Often when you buy a resale house you will receive many gifts from the previous owners in the form of finished basements, landscaping, fences, appliances, and maybe even a pool (which can climb to over 100k if you wanted to put in your own). The cost of these features is included in the purchase price and generally valued at much less than it would cost you to purchase them in today’s dollars.

Many people are also passionate about the character features of a home or neighbourhood. There is a finite supply of character homes— so they can be good investments as maintaining and upgrading them will usually result in good returns!

What are the cons of buying a resale home?

The downsides of buying an existing home can be the age and condition of things like the roof, the windows, the furnace, and other high-cost items. If you can find out who the original builder was it will also add some comfort in knowing that it was a quality build, and having a qualified home inspector look at the home will give you important assessment of the maintenance of the home by the previous owners.

The last downside is tricky— because for some it’s actually an upside! With resale homes, you get what you get. Some people prefer this compared with the uncertainty of what the finished product will be in a new build, but it also means that if the ceiling height is 8’, or if the kitchen is closed concept, or the bedroom window faces directly into the neighbours’ bedroom window, that’s the way its going to stay. Customizing a resale home is going to come at much greater expense and inconvenience than customizing a new build.

What should I do next?

If you’re leaning towards building a home, please explore our website to learn about the cost of building a home, and check out Discovery Homes Ltd and some of the design options available to be built.

If you’re leaning towards buying an existing home, we have lots of information about the buying process and be sure to check out what’s for sale now.

The best thing to do is to contact us to set up a discussion with a realtor, to factor in both potential routes, new and used, and then determine what will make the most sense for you and your family.