It is expected that around 1,200 brand new, non-landscaped homes will be purchased this summer in Saskatoon. In an effort to bring down initial housing costs, home builders have cut some previously expected items and left them for the purchaser to do later. These "cut" items include a garage cement pad, walkways, a deck, fencing, landscaping, top soil, sod, sprinklers, and a completed basement development.
CMHC (Canadian Mortgage and Housing Corporation) has estimated the cost of a brand new home in Saskatoon is around $430,000. This price, however, does not include the "cut" items listed above. Being forced now to manage these additional home projects, you could be spending something that looks like the breakdown below:
$20,000 for a garage pad and sidewalk
$10,000 for a deck and fence
$6,000 for landscaping (or $8,500 for maintenance free turf that looks and feels like real grass. See my previous post, Are Those Real?)
$50,000 for a completed basement development (good luck finding trades people willing to work on a basement, without pulling favours!)
Adding these post-purchase extras brings our housing price from $430,000 to over $500,000 once everything is completed.
This bears the question- is it better to buy a new home or an old home? Initial costs are similar between new and old, but what you spend your money on afterwards is much different. Here is a breakdown of the pros and cons of buying new or old.

Cons
A newly built house needs time to settle. This can cause cracks in the foundation, door frames, and that new cement path you just had built.
You are forced to manage home projects including a garage cement pad, walkways, a deck, fencing, landscaping, and a basement development.
Pros
While you have to manage home projects, you can make it the way you like it, instead of living with what someone else has done and is too expensive to change.
New homes are more energy efficient, convenient (built-in dishwasher, central vac, wiring systems are easy and networked), and not in need of maintenance.

Cons
With an older home you will have many of these "cut" items, but they may be outdated or ugly. Previous owners may have done the home renovations themselves, which often means it was done poorly. It costs more to rip out old construction and then redoing it, than starting with a clean slate.
The wiring, plumbing, furnace, and water heater are old and possibly in need of maintenance.
Pros
An older home generally is part of a more established neighbourhood with longer term neighbours, mature trees and foliage.
Larger yards are another bonus of buying old, because builders were able to build on larger lot sizes when land prices were cheaper.
The decision between old or new is a difficult one. When my wife and I were going through the pros and cons of each, we decided we wanted to buy new. Our personality types make us a little extra picky and we didn't like how other people had "renovated" their homes before trying to sell them. We figured we would have to rip everything out and start over with these older homes, so for us, buying new made a lot more sense. Each person taking into account their personality and preferences are going to come to different conclusions, but it is important to thoroughly consider what you want before making the decision between new or old.
