Posted 6.18.13 @ 8:40
According to a recent American study, homeowners may be able to afford a higher priced home if it’s new – but how much does that apply to the rest of us? According to the study when you factor in the rest of the costs of buying a home and the long term costs over the first ten years of ownership, a newer home can be much more reliable. Here we’ll talk about if this translates well into the Canadian market and if buying a new or newer luxury home for sale can really save you money.
Homes Built Before 1970 Cost More
When you add up all the insurance, taxes, utility costs and maintenance on older homes built before 1970 you’re going to run into a lot more than you would with a newer home. Maintenance alone on average cost homeowners about $600-$700 a year, with insurance premiums being higher on these homes due to building standards in the past. You’ll always want to look beyond that initial sales price to find out what the real bargain will be when you add everything up.
Homes Built After 2006 Cost Less Over Time
Home built after 2006 have an average yearly maintenance cost of $200 to $300 and the insurance premiums will be much lower. Your mortgage payments will be higher for sure, but you always want to look beyond that sticker price so you can understand just how much further your money can go. If you do go with a new home, you’ll want to know who built it and how they’re building it. You want to make sure no corners get cut when it comes to your home and make sure that you’re really getting what you pay for.
Mortgage Payments May Be Higher, but Operating Costs are Lower
When you buy a new home you’ll obviously be paying more in your mortgage, but your operating costs for maintenance, home insurance and more will be much lower. You’re going to want to look at the total cost of a home before you start worrying about buying. Don’t be afraid to ask for an energy audit before you buy so you know what you’ll expect to pay once this is your home - especially if you’re looking at buying a home with older appliances and infrastructure.
Know What You Want
Before worrying about operating costs and maintenance on a new or older home, it’s important to know what you want. If you want an old Victorian with crown mouldings that you can restore to its original condition, a few hundred extra dollars (or thousand depending on the size of the property) in operating costs aren’t really going to be a factor. If you know that you want to buy a new luxury home and want to do it in a way that saves, buying a newer home may just be the way to go!
Check out our homes for sale page, to view some great luxury homes for sale in Oakville and surrounding areas!