7 economic benefits of buying a new home

7 economic benefits of buying a new home

You don’t feel like doing all the handyman jobs to get your dream home? Is the idea of buying a "turn-key" new property thrilling you? By choosing with flair your future house you take advantage of a myriad economic benefits.

1. No need for renovation

When you buy a property on plan, you can also customize several finishings. Would you like hardwood, a type of molding or a fireplace? At the time of choosing some features for your dream house, it’s important to get information about the related cost to each of your requests. To feel satisfied of your choice, it is also advised to certify the house’s square footage and the predicted height of the ceilings with the developer once the pipes, electrical cables and floors installation is done.

By choosing materials and other features depending on your preferences, you avoid paying for expensive renovations.

2. Guarantee Plan

The purchaser of a new property of which the contractor is certified by Régie du bâtiment du Québec (RBQ) can take advantage of Plan de garantie des bâtiments résidentiels neufs (it is a guarantee Plan for new residential buildings). It covers, for example, the buyer carrying costs or his assets storage costs in case of behind schedule. Further, if the buyer notices in the first five years a construction flaw, generally the contractor must proceed to the work required.

If the contractor refuses to cooperate, the file will then be managed by Garantie de construction résidentielle (GRC). In order to promote a positive buying experience, before signing an agreement, it is recommended to make sure that the contractor and the developer have a good reputation.

3. Energy conservation

New properties generally have a good energy efficiency because of the enforcement of existing standards and the use of new materials for the construction. This will reflect in smaller electricity bills. A few energy conservation programs give access to financial assistance. The Ministère de l’Énergie et des Ressources naturelles website gives details about it.

4. Home ownership

As a result of a few home ownership programs, several first time home buyers can achieve their dream of becoming an owner without paying an incredible amount of money for a down payment. For example, Accès Condos (established by Société d’habitation et de développement de Montréal – SHDM) allows the purchaser to benefit of a 10% purchase credit for the new property value used for investment, on condition that the buyer provides a down payment of 1000$. It’s important to note that this 10% and another 10% of added value must be paid to SHDM when the condo is resold.

Meanwhile, for Accès Propriété (founded by Construgep in cooperation with SCHL) the purchaser’s down payment amounts to 5000$. This private program provides 5% of the building value as an investment when the condo is resold or refinanced, the individual is required to reimburse this amount and a 5% of added value.

5. Tax rebate

A good new for the newly built house purchasers: The Quebec government offers to reimburse a part of the taxes, which is 50% of the QST (for a minimum of 9 804$ by owner-occupant) and 36% of the GST (up to 6 300$). A financial assistance from a municipal level could also interest several buyers. For example, some cities and municipalities reimburse the property transfer taxes for a new house ownership. Some conditions may apply. The amounts vary according to the house’s square footage, the number of occupants and the acquisition price.

Contact your city to learn more about the existing programs.

6. Say hello to savings

It’s time for homebuyer market. With many new properties unsold, developers use creative strategies to attract new buyers. You could, for example, get the air conditioning or an interior parking for free.

The offers can vary from a developer to another and sometimes, it is not announced. By reaching out directly developers, you could discover their strong value propositions and save thousands of dollars.

7. Tax rebate

A little secret: if a newly built house is vacant, the contractor who has sometimes substantial charges to pay could be motivated to sell off quickly. It is also in favour of the buyer when the contractor reach the level of 40$ to 50% of pre-sold units, because the normal quota required for obtaining the funding of the banks in order to finish the realty project. By being well prepared, you could have a discount up to 15%  on a new house.

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