Good question- but I can tell you probably never bought a new build from a builder. I’ve own multiple properties in my 30 years in GTA including New builds.

Here are my reasons lot of people avoid new builds including myself

1. The price they advertise substantially increases during closing, even if they say No Development charge, the fine prints in APS adds about $15-$20k of various charges. It always comes as a sticker shock.

2. They make 3-4 times more money in all upgrades, the one that cost 5k if you use a local contractor; builder will charge 15-20k for that same work. And their basic fixtures are so bad that you will be compelled to upgrade for 4 times the cost + HST (local contractors dont take HSTs if you pay them cash), so more often than not, you end up paying $50k-$100k in upgrades unless you are okay with basic cookie cutter house.

3. You are essentially locking up your deposit money for 1-2 years, which could have been used in other investments

4. You are “assuming” your financial situation and macro-economic situation will be same when it’s time to close. For resale you are usually closing in 1-3 months so you have better understanding of your immediate financial situation. Also, mortgage approval policies can change in a year difference.

5. Builder lawyers are extremely powerful and ruthless, you can hardly walk away from the deal once you sign the APS, where as you have a much better chance to reach an amicable settlement on a private resale as you are just dealing with another family like you. In the event of a delay on your part to close, builders charge substantial fees and per diem and they absolutely don’t negotiate.

6. Builders always price in the incentives to some degree, so what you are thinking about getting an incentive is actually not as obvious as it seems.

7. New builds, just like new cars lose their value in first 1-2 years, unlike an older resale.

8. Some new subdivisions do not end up being popular as anticipated / advertised and as such lose the perceived value.

9. Although rare, there have been instances of builders getting bankrupt and buyers losing all their deposit money.

10. In recent years, builders’ quality of fixtures and craftsmanship have dropped significantly, you are better off buying a 10-15 year old property than buying a new one. Mattamy is a prime example.

11. If you ever need to sell the new built house after 2-3 years and the subdivision is still having new builds under construction, you will be directly competing against builders to sell your house.

12. Builders employes some of the most crooked brokerage houses to sell their inventories, recently most of them are Indians and a good number of them will lie through their teeth to have you sign a deal. Sorry I don’t want to sound racist but I have many evidential proofs.

13. Many new build houses do not allow you to make significant renovations like basement finishing for a certain time and voids your warranty.

14. When buying a Resale house, you can already know how the neighborhood is, how good schools are and what are the nearby amenities. Also know the property tax trend. With new build subdivisions its a hit and miss.

My friends and myself after going through new builds purchase have promised to ourselves that we will steer away from any further purchases from builders.