Should You Build or Buy Your Dream Home? Everything You Need to Know

 

Are you trying to decide between building a new home or buying an existing property for your next house purchase in the maritimes? With housing markets varying across different Canadian cities and provinces, it can be tricky to determine the most cost-effective and convenient option.

This comprehensive guide will walk you through all the key factors you need to consider when weighing building versus buying, including:

• • Cost comparisons
• • Timeline differences
• • Customization and design options
• • Pros and cons of each route
• • Warranties and protection
• • Choosing the right location
• • Financing your home

By outlining the major points of distinction between constructing a new dwelling and purchasing a resale home, this article will empower you to make an informed decision based on your budget, lifestyle needs, and real estate market conditions. Let’s dive in!

 

Cost Comparison

Let's start with the almighty dollar. How do the costs compare when building new versus buying existing in Canada?

The answer depends a lot on location. Housing prices can vary dramatically across different cities and provinces.

Here are some averages to give you an idea:

• • The average cost to construct a new single-family home in Canada is $500,000 - $600,000.
• • Most luxury homes in an area like Halifax, start at $1,000,000+
• • The average resale price for an existing single-family home is $400,000 - $550,000.
• • Building is almost always more expensive upfront.

 

But averages only tell part of the story. Here are some other cost factors to weigh:

• • Land - Do you already own land to build on? That saves hugely on costs.
• • Materials - Supply shortages lately have driven material prices way up.
• • Labor - Construction worker wages have risen fast recently.
• • Permits - All those municipal and utility hookup fees add a few grand.
• • Renovations - Older homes often need big repairs and upgrades.
• • Commuting - Existing homes may cost you more in gas and car wear.

Pro tip: Get quotes from 3 builders and 3 lenders before deciding! Prices can vary a lot.

Cost Comparison	Building New	Buying Existing
Upfront cost	Higher	Lower
Customization	Total	Limited
Land cost	Only if buying land	Included
Renovation cost	None	Likely high
Commuting cost	Could be lower	Could be higher

 

The bottom line? There's no universal answer on cost. Building new is often pricier upfront, but offers more control. Carefully weigh all the individual cost factors for your situation.

The good news? Canadians have access to great mortgages and programs to help finance either route! More on that later.

 

Timeline Differences

When it comes to building versus buying a home, one of the biggest considerations is the timeline. How long are you willing to wait before moving into your new pad?

Let's break down the typical time frames for each option:

Building a New Home

• • Plan for construction to take 6-12 months on average.
• • The planning and permit process alone can take 1-3 months before you even break ground!
• • Delays are common due to: Bad weather, Supply chain issues, Labour shortages, Last minute design changes and additions
• • Your closing date and move-in time frame is not guaranteed. Builders give estimates, but those are often optimistic.
• • If you need to move by a certain date for a job or school, building new is risky!

Pro tip: Don't set your closing date for a week before your lease ends. Give yourself a buffer in case the build runs behind schedule!

Buying an Existing Home

• • After your offer is accepted, plan for closing within 30-60 days.
• • The timeline is more predictable than building new.
• • You'll lock in a firm closing date in your purchase agreement.
• • If you need to move quickly, buying an existing home is a safer bet.
• • Closing can sometimes happen faster than 30 days in a hot market with all-cash offers.
• • But don't get too ambitious! Closings under 30 days are rare.

 

Timeline Comparison	Building New	Buying Existing
Average timeline	6-12 months	30-60 days
Closing date	Not guaranteed	Firm date set
Risk of delays	High	Low
Ability to move quickly	Low	High

 

The takeaway? If you're on a tight schedule or need to move ASAP, buying an existing home will get you moved in much quicker. But if you want a 100% customised space and aren't in a rush, opt for building new.

Just be warned - even small changes during construction can push back your move-in date by weeks when building new. Give yourself a buffer if your lease is ending!

 

Customization and Design

When it comes to making a home your own, building new has huge advantages for customization and design.

Building Your Dream House

• • Fully customise the floor plan and layout. Add rooms, move walls, enlarge windows - the possibilities are endless!
• • Pick your dream finishes like floors, tiles, lighting, and hardware. The world is your oyster.
• • Design a killer kitchen with your perfect cabinetry, countertops and backsplash.
• • Create an entertaining paradise with a built-in bar and media room.
• • Go green and integrate solar panels, a greywater system, or geothermal heating.
• • Future-proof with smart home technology like motion sensors, smart locks, and video doorbells.

Pro tip: Use Pinterest, Houzz, Instagram, and home magazines to build your inspiration board!

Buying an Existing Home

• • You're limited to the existing floor plan and layout. Making big structural changes is costly.
• • Previous owners likely have different tastes. Enjoy the purple shag carpet and seashell sink!
• • Upgrading finishes and features you don't like will add to your total cost.
• • You may inherit odd quirks or outdated styles from previous owners.
• • Adding smart features will likely require rewiring and installations.

 

Customization Options	Building New	Buying Existing
Floorplan	Total control	Work with existing
Finishes	Your choice	Previous owner's taste
Kitchen/bath	Design your dream	Retrofit existing
Tech features	Pre-installed	Retrofit required

 

When it comes to total customization over design, fixtures, finishes and layout, building new reigns supreme.

But clever renovations and upgrades can still make an existing home your own. Love purple shag? Embrace it!

 

Pros and Cons

We've covered the big stuff - cost, time, and design. Now let's boil it down to the major pros and cons of building new versus buying existing.

Pros of Building New

• • Total customization of layout, finishes, features
• • Brand new condition - no weird old quirks
• • Latest in energy efficiency, technology, and sustainability
• • Warranties against defects on new construction
• • Make modifications for accessibility as needed
• • Get exactly the lot size, location and neighbourhood you want

Cons of Building New

• • Much higher upfront costs and budget overruns
• • Longer timeline with uncertainties and delays
• • Picky selections for finishes add time and stress
• • Unknown issues lurking below ground on empty lots
• • Supply chain shortages causing material delays
• • Site mess and noise during construction

Pros of Buying Existing

• • Significantly lower upfront costs in most markets
• • Faster timeline to get moved in
• • Mature trees and landscaping
• • No living through months of construction
• • Make an offer contingent on inspections

Cons of Buying Existing

• • Compromises on layout, finishes, style
• • Potential for nasty hidden issues
• • Likely need renovations and repairs
• • No control over neighbourhood changes over time
• • Bidding wars in hot markets

 

Considerations	Building New	Buying Existing
Customization	Total	Limited
Cost	Higher	Lower
Timeline	Longer	Faster
Condition	New	Unknown
Market	Less competition	Bidding wars

 

Weigh your top priorities and lifestyle with you needs to decide if the pros of building or buying match up best for your dream home!

 

 

Protection and Warranties

No house is perfect, no matter how new or clean it seems. Here's how warranties and protection can give you peace of mind:

New Home Warranties

When building new homes in Nova Scotia, or New Brunswick, most builders provide a warranty:

• • Covers defects in workmanship and materials for 5-10 years typically
• • Applies to major structural components like roof, walls, foundation
• • Also, it may cover plumbing, electrical, HVAC, windows, doors
• • Warranty is provided by your builder or a third-party insurer
• • Ask what's covered! Many exclusions apply.

Pro tip: Pay close attention during pre-drywall and pre-closing walkthroughs to catch issues.

Home Inspections

For resale homes, a professional inspection is a must:

• • Use an experienced, licensed home inspector
• • Inspection clause lets you back out based on findings
• • Identifies issues with roof, foundation, HVAC, plumbing, electrical
• • Also, check for leaks, mold, pests, asbestos, lead paint
• • Negotiate repairs or credit based on inspection report

Home Insurance

Protect your investment with insurance either way:

• • Covers damage from fire, storms, theft and some water leaks
• • Include liability coverage in case someone is injured on your property
• • Set aside 3-5% of home value for deductibles
• • Shop around for the best rates and coverage

Smart protection gives you confidence in your biggest investment - your home!

 

Choosing the Right Location

Location, location, location! Finding the optimal spot for your home is key for either building or buying in Nova Scotia & New Brunswick.

Here are some factors to consider for your home search:

Commuting

• • How far is your commute to work/school? Map out drive times.
• • Consider traffic patterns at different times of day. Rush hour counts!
• • Weigh costs of fuel, vehicle wear and tear, and public transit.
• • Test out commutes from short-listed neighbourhoods during peak times.

Amenities

• • What's accessible in the area? Grocery stores, restaurants, parks, trails, entertainment?
• • Check walkability scores and browse Google Maps street view.
• • Are hospitals, doctors, dentists, pharmacies, gyms, etc. conveniently located?
• • Look into membership fees, entrance fees and availability of amenities.

Schools

If you have kids:

Protect your investment with insurance either way:

• • Research school quality, class sizes, rankings and demographics.
• • Factor in the commute to schools and transportation options.
• • Visit schools and talk to teachers to get first-hand perspectives.

Community

• • Is the neighbourhood safe and well maintained? Check crime rates.
• • Does the community match your lifestyle and values?
• • Are there opportunities to be involved locally? Events, volunteering, rec sports?
• • Get to know potential neighbours before committing.

Future Plans

• • Is redevelopment or new construction planned for the area?
• • Will nearby amenities and infrastructure expand in the future?
• • Is property values likely to increase over the next 5-10 years?