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In part 1 of the series “Is Buying New a Good Investment in Kelowna” we looked at what makes a new build a good investment along with the overall risks and rewards of buying a new home in a new development.
Buying New - An Investment in Your Lifestyle
“Nobody has used the toilet before. You know the house is clean because nobody has lived in it before. That means your firsts in the home are THE firsts in the home. And that’s kind of cool!” - Darcy Nyrose
When buying a home for your primary residence, you aren’t necessarily thinking about your purchase as an investment, but rather how it will fit your needs AS A HOME. As we uncovered in Part 1, buying new in Kelowna is generally a sound investment. After all, you get to lock-in today’s pricing and take ownership in tomorrow’s market. In Kelowna, we’re consistently seeing positive market growth year-over-year. Even if the market does begin to balance out, when you go to sell in a few (or more) years, you’re likely to have weathered any market downturns.
1.) Time - You’ll have to pay a deposit to secure your home (or agree to a deposit schedule), but you won’t have to pay for the home or take out the mortgage until you take possession. This allows you additional time to save up for your full down payment, pay down debts, be at your job longer for mortgage approval, or even save for new furniture.
2.) More Choice - When you’re buying in a new development, there will generally be more choice. You can often select from various floorplans, which way your home faces, and the location of your home within the community.
3.) Customization - Generally you’ll have the opportunity to select from interior style and colour options and select from upgrade options.
4.) New Home Warranty - Today’s new builds are covered under a new home warranty which is a great perk for owners of new homes should something go wrong.
5.) New Design - Your home will be built to today’s building code and today’s design and style. You don’t have to worry about anything being outdated.
6.) PTT-Exempt (if under $750k)* - If the home is your primary residence and is under $750,000, your home will be exempt from BC’s Property Transfer Tax. This is a great savings.
7.) It’s Never Been Lived In - Your home and everything in it is brand new. From the toilet to the dishwasher, from the light bulbs to the bathtub, you’re getting a bright, shiny and new home that has never been used or lived in before.
1.) Additional Costs
GST - There is GST on new build homes, which is an additional cost you should budget for. When looking at pricing, be sure to inquire if the price includes GST or if GST will be added.
PTT if over 750K or not your primary residence - Property Transfer Tax* kicks in after $750,000 or if the home is not your principal residence).
2.) Potential Long Wait and/or Delays
You cannot move into the home until you have occupancy and that depends on the construction schedule. Any completion date is likely to be an estimation until the build is closer to the finish line. You should anticipate some construction and/or supply delays.
We love talking NEW with our clients. There are so many new developments to choose from in the Kelowna area, in all phases of sales and construction. We'd love to help you narrow down your search. Give the Nyrose & Associates team a call at 250-258-9888.
