{"id":1052,"date":"2022-08-18T21:46:22","date_gmt":"2022-08-18T21:46:22","guid":{"rendered":"https:\/\/dev.wahi.com\/wp\/?p=1052"},"modified":"2025-04-11T15:49:30","modified_gmt":"2025-04-11T15:49:30","slug":"building-vs-buying","status":"publish","type":"post","link":"https:\/\/wahi.com\/ca\/en\/learning-centre\/real-estate-101\/buy\/building-vs-buying","title":{"rendered":"Building a House Versus Buying a New House"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”55px||||false|false” global_colors_info=”{}” custom_margin__hover_enabled=”off|desktop” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” width=”95%” max_width=”100%” custom_margin=”||-24px||false|false” custom_padding=”55px||||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_breadcrumb-link title=”Real Estate 101″ _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjcyMiJ9fQ==@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”Buy” _builder_version=”4.18.0″ _dynamic_attributes=”link_option_url” _module_preset=”default” link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybF9wYWdlIiwic2V0dGluZ3MiOnsicG9zdF9pZCI6IjE2MzIifX0=@” global_colors_info=”{}”][\/wahi_breadcrumb-link][wahi_breadcrumb-link title=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IiIsImFmdGVyIjoiIn19@” _builder_version=”4.18.0″ _dynamic_attributes=”title” _module_preset=”default” module_text_color=”#686E6E” global_colors_info=”{}”][\/wahi_breadcrumb-link][\/wahi_breadcrumb][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _dynamic_attributes=”content” _module_preset=”default” header_font_size=”3.5rem” header_line_height=”4.5rem” header_font_size_tablet=”42px” header_font_size_phone=”3rem” header_font_size_last_edited=”on|phone” header_line_height_tablet=”4.5rem” header_line_height_phone=”3.2rem” header_line_height_last_edited=”on|desktop” global_colors_info=”{}”]@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF90aXRsZSIsInNldHRpbmdzIjp7ImJlZm9yZSI6IjxoMT4iLCJhZnRlciI6IjwvaDE+In19@[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”4px||3px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][wahi_socialsharing _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/wahi_socialsharing][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”24px” text_line_height=”1.5em” custom_margin=”||8px|||” global_colors_info=”{}”]<\/p>\n

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Learn about the key differences between building and buying a new home in Ontario<\/a>.<\/p>\n<\/div>\n

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By Emily Southey<\/a> | 11 minute read<\/p>\n

[\/et_pb_text][et_pb_post_title title=”off” author=”off” date_format=”M j” categories=”off” comments=”off” featured_image=”off” _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_post_title][et_pb_image src=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9mZWF0dXJlZF9pbWFnZSIsInNldHRpbmdzIjp7fX0=@” align=”center” force_fullwidth=”on” _builder_version=”4.18.0″ _dynamic_attributes=”src” _module_preset=”default” custom_padding=”40px|||||” border_radii=”on|32px|32px|32px|32px” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n

Debating whether to buy an existing house or build a new one from scratch? You\u2019ve come to the right place. Buying any sort of property, whether it\u2019s vacant land you plan to build a home on or a traditional resale home, is a major decision. Therefore, you should take the time you need to carefully consider whether buying or building your own house is right for you. To help you make this important decision, we\u2019ve compiled a list of the pros and cons for each.<\/p>\n

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Building a New House Overview<\/h2>\n

Whether you\u2019re a first-time homebuyer or a current homeowner, building a new house from the ground up can be an exciting prospect. However, building a new house instead of buying a resale property comes with both advantages and disadvantages, which we lay out below.<\/p>\n

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The pros of building a new house<\/h2>\n

From greater customization to lower energy costs, some of the pros of building a new house are as follows:<\/p>\n

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Opportunities for customization<\/strong><\/h3>\n

Building a house from scratch allows you to customize and personalize it however you want. From the floor plan and the kitchen cabinets to the lighting, sinks, and even the doorknobs, you get a say in every single aspect of your home. If you have strong preferences when it comes to architecture and interior design, or a specific vision for your home that you haven\u2019t found anywhere else on the market, the opportunity for complete customization that comes with building a new home might be extremely appealing. Plus, when you build a home that suits your taste and lifestyle, you might be more likely to stay in it for the long term.<\/p>\n

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Less competition<\/b><\/h3>\n

When a housing market is hot, buying a home can be stressful. Greater competition leads to bidding wars, which leads to homes selling over asking, costing the homebuyer more money. But by purchasing land instead of a resale property, you effectively remove yourself from this competitive landscape. In fact, you may have no competition whatsoever, depending on the land you want to purchase. This is a major plus for buyers who want to avoid the stress of the housing market.<\/p>\n

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Minimal maintenance in the short term<\/b><\/h3>\n

Since your home will be brand new, you won\u2019t have to worry about maintenance or repairs, at least in the first few years. In contrast, when you buy a resale home, there\u2019s always a chance that you\u2019ll discover a major problem after the fact (one of the reasons home inspections are so important). But when you build a home from the ground up, you won\u2019t have to worry about asbestos in the walls or a leaky roof. Instead, you\u2019ll have peace of mind knowing that your home meets all current building codes and features new, state-of-the-art technology, resulting in minimal maintenance.<\/p>\n

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Greater energy efficiency<\/b><\/h3>\n

Another advantage of building a new house is that newer homes tend to be built with greater energy efficiency. So if you\u2019re looking to reduce your carbon footprint, constructing a brand new house might be the perfect way to do so. Since you get to choose the design of your new home, you can prioritize green architecture and sustainability, incorporating energy-efficient HVAC units, smart technology, and sustainable materials into the design. Plus, the more energy-efficient your home, the lower your utility bills.<\/p>\n

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You are the first person to live in the home<\/b><\/h4>\n

One final pro of building a new house instead of buying an existing one is that you will be the first person to live in it. This means a literal fresh start, not to mention that you get to enjoy brand-new everything, from the HVAC system to the plumbing to the lighting.<\/p>\n

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“Whether you\u2019re a first-time homebuyer or a current homeowner, building a new house from the ground up can be an exciting prospect. However, building a new house instead of buying a resale property comes with both advantages and disadvantages.\u201d<\/h2>\n

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[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n

The cons of building a new house<\/h2>\n

Despite the many advantages of building a new house, doing so also comes with disadvantages, such as those listed below.<\/p>\n

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The cost<\/b><\/h3>\n

One of the main disadvantages of building a new house (one that deters many homeowners from doing so) is that it is expensive. In fact, in most cases, it costs more than buying an existing home. Beyond the main costs of building materials for walls, windows, floors, and roofing, there are often hidden costs that come with building a home from the ground up. For example, finishes like countertops, appliances, and fixtures can be pricey, as can upgrades or unforeseen costs. Plus, homebuyers must remember that there are also post-move costs to consider, like landscaping.<\/p>\n

–<\/span><\/p>\n

The time<\/b><\/h3>\n

As you might suspect, building a new house takes considerably longer than buying an existing home. It takes an average of seven months to construct a new house. However, this time frame has been significantly longer due to supply chain issues exacerbated by the COVID-19 pandemic. In contrast, closing on a house can take as little as 30 days. Homebuyers must keep this in mind before committing to building a house, especially since they will need to pay to live elsewhere until the project is completed.<\/p>\n

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The price is the price<\/b><\/h3>\n

Typically, there is very little leeway with the price when purchasing land. So unlike how you would enter a homebuying transaction expecting to negotiate, the price is often firm when buying land to build a new house. Not being able to negotiate might be a turnoff to buyers, especially if you’re looking to get the most bang for your buck.<\/p>\n

–<\/span><\/p>\n

High stress<\/b><\/h3>\n

Building a home from scratch can be incredibly stressful. After all, it\u2019s a long and complex process that requires you to not only purchase the land but settle on a home design, pick out finishes and materials, approve all specifications, and review wordy contracts. It\u2019s a much more hands-on process than if you were buying a resale home. Plus, construction on new homes is often delayed, and staying on budget can be tricky, especially the longer the project goes on. Homebuyers must possess the stamina and perseverance building a new home requires, as without it the process can be very stressful.<\/p>\n

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Expensive financing<\/b><\/h3>\n

Securing financing is a key part of both buying a new house and building one. Unless you have the capital to pay for the home yourself, you will need to secure a loan. However, land loans can be harder to obtain and often come with larger down payment requirements and higher interest rates. Beyond the loan needed to purchase the land, you may also need to obtain a construction loan to help you finance the actual building process. Once the project is complete, homeowners will then need to take out a traditional mortgage. All in all, the financing of a new home can be expensive, adding to the overall costs.<\/p>\n

–<\/span><\/p>\n

The cost of building a new home<\/strong><\/h3>\n

Speaking of costs, you now know that building a new home tends to be more expensive than buying an existing home. But what exactly are you paying for? We break down the main costs associated with building a new house below.<\/p>\n

\u00a0–<\/span><\/p>\n