Buying a new house: 8 points to verify
Whether you're new to the property market or not, buying a new or off-plan home can be a challenge. Understanding the crucial elements to check helps you avoid unpleasant surprises that could make you regret your purchase.
Discover 8 important points to verify to ensure the success of your real estate project.
1. Location and neighbourhood
2. Your budger and the costs to anticipate
3. Subsidies and tax credits
4. The contractor in charge of the project
5. Guarantees
6. Model home tours
7. The plan and customization options
8. The preliminary contract and the guarantee contract
The advantages and disadvantages of buying a new house
Buying a new or off-plan house has its share of advantages. It's just as important to carefully consider the disadvantages to help you succeed in your home purchase.
| Benefits | Disadvantages |
|
The house meets your needs. The house is in excellent condition and will not require renovations for some time. New homes often offer greater energy efficiency. Warranties on new construction give you peace of mind. You can generally choose materials according to your taste. |
You must pay taxes (GST and QST) on new construction. New constructions tend to be more expensive. Costs and deadlines can sometimes change along the way. A developing neighbourhood may take time to become attractive. You must give a very large deposit from the start. If the project fails, the deposit may be at risk. |
8 points to verify before buying a new house
Buying a new home requires a significant investment of time and money. It is therefore essential to prepare yourself well by making the necessary verifications before committing.
1. Location and neighbourhood
Location is a central element to evaluate when purchasing a new home. Determine your needs when choosing your neighbourhood. Find out what amenities are nearby or are under development.
For a neighbourhood under construction, it is important to find out about short-term and long-term development projects. This will allow you to know if the environment will still suit your needs once the neighbourhood is developed.
2. Your budget and the costs to anticipate
Take the time to calculate all the costs associated with purchasing and maintaining a new house. This includes the purchase price (the down payment and anticipated monthly mortgage payments), the choice of materials, taxes, notary fees, property tax, etc.
In your budget, one element not to forget is to include a financial cushion in case certain unforeseen expenses are added to your project.
In short, you must establish your budget with knowledge of the costs and your financial situation.
3. Subsidies and tax credits
Grants and tax credits are available for first-time buyers and new home buyers. For example, you may be entitled to a partial refund of the GST/HST paid on the property. There are also subsidies for eco-responsible construction or renovations.
Find out about the options available to you at municipal, provincial and federal levels.
4. The contractor in charge of the project
Before you embark on a project, research the people you would be doing business with to make sure you can trust them.
RBQ contractor licence
All contractors must hold a valid general contractor’s licence issued by the Régie du logement du Québec (RBQ) to construct a new building.
Ask the contractor for his licence number and check its validity with the RBQ Registre des détenteurs de licence.
You can also check the file of the entrepreneur or his company in the Registre des entreprises du Québec.
References
You will want to learn more about the reputation and projects completed by the contractor, as well as their ability to meet promised deadlines. Don’t hesitate to ask for references from previous clients. Also, do your research online and take a walk around the neighbourhoods where he has built properties to see the results in person from an outsider's perspective.
5. Guarantees
Check if your property is covered by the Guarantee Plan for New Residential Buildings.
The Plan covers, among other things, new single-family homes and most condos. If the contractor you are dealing with is accredited with Garantie de construction résidentielle (GCR), you are automatically protected.
To carry out your verifications, consult the Accredited Business Directory.
6. Model home tours
When the option is available, take the time to visit model homes. This will give you a good impression of what to expect before moving further into the project.
7. The plan and customization options
Examining the plans and specifications of the new house will allow you to ensure that everything meets your needs and your lifestyle. If you are less comfortable with certain points, you can discuss them with the manufacturer.
8. The preliminary contract and the guarantee contract
In the case of a new property, you will have to sign a preliminary contract, which gives you a 10-day right of cancellation. It acts as a promise to purchase for a new property. This document has legal value and binds you and your contractor for the project. You will also need to sign the guarantee contract, legal proof that you are covered by GCR.
Before signing any contract, make sure you have made all the necessary verifications as presented previously. Read the contract carefully and make sure you understand the clauses and that they suit you, such as conditional clauses such as inspection, receipt of the certificate of location, your mortgage financing, etc.
Get help from a real estate broker
You can call on a real estate broker to advise you on the purchase of a new house. Their role is to answer your questions and ensure that your best interests are protected.
Buying a new house requires taking your time and verifying several essential points to position yourself well. Your verifications will help you make an informed purchase that is less subject to unforeseen circumstances.
Sources
Régie du bâtiment du Québec - Guarantee Plan for New Residential Buildings
Plan de garantie - Guarantee Plan for New Residential Buildings: Find out if your residence is covered
