Royal LePage - Your Community Realty, Independently Owned and Operated, (905) 731-2000

 Jim Reid, Broker, (905) 731-2000

 

 

 

 

Better to Buy New Homes or Resale Homes?

 

The following data relates to a comparison of new home prices in two new subdivisions along Bathurst St. North of Highway #407, Thornhill Woods and North Thornhill Estates vs. a 17 year old subdivision of Executive Residences in the area called Heritage Estates.

Subdivision

Avg. Lot

Avg.Sq. Ft.

Avg. Price

Price/Sq. Ft.

Thornhill Woods

4950

3130

$540514

$173

N.Thornhill Estates

4950

3470

$625733

$180

Heritage Estates

5750

3250

$560571

$172

Lot Size: - Heritage Estates lots are 16% larger on average.

Home Sq. Ft.: - Heritage Estates homes are comparable in size.

Price: - N. Thornhill Estates homes are 11.6% more costly for                    6.8% more space.

Price/ Sq. Ft.:  - Heritage Estates is less, but by a lot less than the numbers would indicate. The new homes do not include window coverings, appliances, central vacuum, air conditioning, upgraded light fixtures, nor front and rear landscaping which would usually be included in a resale home. The new homes should be assigned a $6-10/ Sq. Ft. premium, plus another $5-6/Sq. Ft. premium for basic upgrades most homeowners want.

 

Other considerations:

  1. Older homes may require maintenance: painting, roofing, windows, driveways, appliance replacements?

  2. Older homes may need updating: decor, tiles, flooring, bathrooms, kitchens?

  3. Older homes may need upgrading: Kitchens, bathrooms, flooring, appliances or these may have already been done?

 

Neighborhoods:

  1. Mature trees add a lot of serenity to an area.

  2. Older areas tend to have well established schools with high standards.

  3. Established areas tend to have lower turnover, so kids aren't always having to make new friends.

  4. Established areas tend to have people with smaller mortgages and less financial pressures.

  5. Established areas tend to have established multi-cultural characteristics, whereas newer subdivisions can become mono-cultural.

  6. Sub-divisions such as North Thornhill Estates have plans for 3000 homes. The area will be under development for 5 to 8 years.

  7. Heritage Estates is experiencing significant upgrading to the homes and grounds with many new owners adding 20% to the value of their properties.

  8. Heritage Estates comprises less than 800 homes, yet there are over 70 different Georgian models. New subdivisions can not match this diversity.

  9. In Heritage Estates, what you see is what you get, but the new home brochures portray deceptive proportions and the actual structures are much less grand and have very small side yard setbacks. Front & Back yards are quite small.

  10. Street parking is a major problem in the new subdivisions.

 

Conclusions:

The quality of lifestyle offered in Heritage Estates will only get better. An outstanding infrastructure of parks and community activities is already in place. In my mind, for the same real estate financial investment, Heritage Estates and the Mill Pond Area win out over the new subdivisions by a wide margin.