Today, we'll be diving into a question that's been on a lot of minds lately - to buy pre-construction or resale when it comes to your next home? Both options have their unique benefits and drawbacks, and today we're going to explore them together.

First, let's discuss the bright side of buying pre-construction:

Customization - It allows us a certain level of discretion on the layout and floor plan elements of the property, as long as the builder has ability to customize the layout in their project offering. This gives you some flexibility tomake the Kitchen updates and the materials used to build cabinets, counter tops, bathroom updates, flooring selections for hardwood as well high-traffic ceramic or porcelain areas.?

Up-to-date Standards - Since the pre-construction home is built as-of date it would have construction done based on updated and recent development codes of the city. The home will have the right insulation, better energy efficient windows and modern construction elements like wide plank hardwood flooring etc, the things which are more relevant to the current market. It would have more recent technology to support the heating, cooling and HRV equipment of the home.

Less Maintenance - The newer construction will attract less maintenance by design and it will be easy on your pocket after the initial expense. In the initial few years there would be less costs and repairs to be made.

On the flip side, there are a few potential drawbacks to consider with new construction:

Prices - This is the most important reason as the newer home due to its younger age will bear and command a hefty price tag, and on top of it if you involved some customization in the property, those costs quickly add up as well increasing the budget.

Wait Period Involved - The pre-construction projects based on the size and scope of the project would involved a waiting time from the time the project is sold to the consumers. For example when we talk about high-rise condo projects, they would typically take 3-4 years to reach the occupancy phase. The low-rise freehold projects can take anywhere between 1-3 years for the occupancy based on developers timelines. There is lot of zoning, environmental and site-plan approval processes which take time and lead to this wait.

Lack of Character - Consumers generally feel that older homes have enhanced charm and characters in their construction style and the aesthetics, which is void in the newer modern concept developments. The older properties have unique architectural elements which become difficult to replicate.

Limited Inventory - For any pre-construction project, the inventory or the lots available for sale are generally limited, and after that you are left to take what is remaining or wait for the next project to open up in the area.

Smaller Lots - The newer homes are generally built on narrower and smaller lots in comparison to older subdivisions built. This is due to the fact that as time has elapsed the land has become prime, and in new subdivisions the economics with developers/city works when more homes are built in a parcel of land.


Now, let's turn our focus to resale properties and why they might be an attractive option:

Price - Prices due to the age of the property certainly would be lower than the similar type/style home in the pre-construction space and would end up being less expensive. Furthermore, since we are not dealing with a developer or a builder, there is a room for negotiation in the Resale market. This too would depend on the type of market prevalent, if it's a balanced or buyer's market, negotiation would definitely be on the cards. 

Amenities - Resale homes organically are in established and matured communities within towns. This has a direct impact as the amenities in the areas, like recreation centres, parks, trails, shopping malls and plazas, police services etc will be already available in the area. 

Wider Lots - Older properties you will observe are build on wider and deeper lots. This gives a sense of breathability and provides more character to the neighbourhood. The whole vibe of openness and less dense neighbourhood can only be found in older subdivisions. In Greater Toronto Area for example you would see that newer single garage detached homes are not built on 25-30 ft lots. 30 years back these were built on 40 ft lots and 60 years back detached dwellings were built on 60 feet plus wide lots. The lots do matter as it's not just the frontage, but the backyard also becomes attractive and more functional for a wider lot property.

Unlimited Inventory - With the Real Estate resale market, the biggest benefit is that there is unlimited supply of inventory. The resale market offers a wealth of choices. You're bound to find what you want eventually, as new homes come onto the market every week. In Real Estate Resale, you can get what you want, provided you are willing to wait. If you want a home near a certain plaza, library, or a home backing onto a park, trail, or one with Walkout basement, everything is possible. As the inventory will keep on recycling and the specific options will come for sale.

On the other hand, the downsides of buying resale include:

Maintenance and Renovation - The older properties would typically require more maintenance for incidental expenses, certain commissioning of reserve funds will give you the peace of mind when moving into an older property.


Outdated Design - The older properties will miss the modern design aesthetics, both in terms of material used inside/out and also for the floor plans. In modern architecture for a single family home, the open concept layout is a trend in todays times. This is difficult to find in older properties where the norm was to give a dedicated kitchen and a distinct living space.

At the end of the day, your choice should be guided by your individual preferences, needs, and budget. Perhaps a larger backyard is essential for your family, in which case a resale home may suit you better. Or you might prioritize a modern layout and design, making pre-construction an attractive option.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]