Since a home is the largest investment you will make, you will have to spend a great deal of time, not to mention energy to find the perfect one. The single most important decision that you will have to make is whether to purchase an existing household or a newly built one. New means exactly what the name suggests: a property that has never been lived before, or a home that you purchase in the pre-construction phase. The decision is not as easy as it may seem at first glance. An existing property has everything that you need, but a new one provides you the opportunity to customize items such as flooring, cabinets or electrical fixtures. More importantly, you can collect the new home buyer tax rebate and enjoy other advantages as well.
The HST rebate on new homes
Although when you purchase a new household you are required to pay an additional 8%, which represents the amount that taxes new homes, you have the possibility to get a discount. The deduction is available for properties that do not value more than $450,000 and the rebate amounts to 36% of the GST portion of the HST. For example, if a home is valued at $100,000, then the GST portion of the HST is $5,000. Multiplied with 36%, the amount that you stand to receive is $1,800. However, you will have to meet certain requirements. To be more precise, the house that you buy should be the primary place of residence and this intention only matters at the time of the transaction. After a reasonable amount of time you will be able to sell the property if that is what you want.
Why is purchasing a pre-constructed house so convenient
At first glance, building a new house is not at all convenient because you have to find appropriate land, take into consideration that time factor and of course find a reliable architect. However, there is a great advantage: you will get exactly what you want. This factor alone should be enough to motivate you to build your home. The builder will do all the hard work for you and you can customise the construction in any way that you want: include modern designs like an eat-in kitchen or choose a creative color pallet. He is the one who will also claim the rebate.
Less maintenance for you
The good news is that newly constructed homes are designed so as to meet certain maintenance requirements. This means that you will not have to do a lot of maintenance work, but to enjoy living there. This is all possible thanks to constructors who take care of aspects like trimming the wood in front of the home exterior. In addition to this, you will enjoy low maintenance costs because everything in the house is new and all the items will be covered by warranty. The warranty will even apply to the construction, so you will not have to worry about issues like plumbing or heating breakdowns.
As you can see, there are many advantages to purchasing a newly constructed house. Not only do you get a considerable tax deduction, but you also have to do less maintenance work.