New Homes Are Better?

We all love new things in our lives. The same about new homes.

We love the way a new car smells, the way a new piece of clothing fits or the rush of adrenaline when we meet someone new in our lives. The same is true for new homes; however, there is a caveat when it comes to buying homes in new developments. While new homes have a certain bling factor, they come at a very steep price.

New homes have the latest gadgets and appliances that technology can offer, also new buildings have a plethora of amenities that existing buildings cannot hope to match; however, they are often priced multiple times more than existing homes. In addition to the higher price, the buyer gets possession multiple months and sometimes more than a year beyond the promised closing date. Often the delays are not intentional, just over exuberance and optimism on part of the developer and the marketing team in not factoring the possibility of delays they may encounter getting permits from City Hall. I have worked with developers on new projects and know too well how Murphy’s Law applies when it comes to new construction despite all the hard work and best ¬†intentions of the team behind the project.

New construction tends to attract foreigners who want to make an investment outside their country, for the wealthy to make an investment in a second or third home, or for pied a terre buyers as it is not their primary residence hence price and possession date are not a factor in their decision making.

My advice to my customers is if you do not fit in any of the aforementioned categories, your interests are better served in purchasing a resale apartment in mint condition as it will offer a “better value” with an immediate occupancy.