Recently there was an article in the News Advertiser that suggested that Durham Region was impacting house affordability because it charges a substantial amount to new home builders to cover the costs of putting in the services to the new homes being built. The development charges and taxes have now risen to about 20% of the new home price.
The developers are complaining. I would be complaining if the region had to put the cost of the new roads and sewers and sidewalks on to my tax bill instead of the developers. Someone has to pay.
Fast forward two to ten years, the development charges and taxes were paid by the new home buyer. They probably put up a fence; added some decorating details; maybe finished the basement. And now you get to buy it.
You don’t have to pay for any of that. They put $50,000 into their basement and you pay about 75% of that value. And they will probably throw in the appliances because they want to buy new ones for their new home.
Real estate agents have been shouting from the rooftops that buying a resale home has benefits, in spades, over buying new. For example:
Convinced. With new home starts down, and resale listings on the rise. Now might be the time to move up.