There are lots of benefits to buying a newly built home that extends beyond appearance! I’m going to share where you can find new builds in Nanaimo, right now!
There are a lot of new homes going up into Nanaimo in areas that I will list in a moment.
Firstly, If you're thinking of buying a brand new home, here are some things that you'll want to consider:
Home Warranty Insurance
New homes built in B.C. are required to have third-party home warranty insurance when built by a licensed residential Builder. As a minimum, you're covered by “2-5-10 home warranty insurance”.
This means- two years for labor and materials. Five years for the building envelope, which includes all of your building components that separate the indoors from the outdoors and includes water penetration. Ten years on the structure of the home, which are things like your roof, plumbing and foundation.
Check out information on Home Warranty Insurance for New Homes BC (since some limits apply to these warranties):
https://www.bchousing.org/licensing-consumer-services/new-homes/home-warranty-insurance-new-homes
GST
When purchasing a new home you will encounter GST, which you cannot include it in your mortgage- so you'll need to be prepared to pay!
Deposit
Something else to keep in mind is your deposit. If you don't have 20% to put down as a deposit you'll need to stick to under a $1 million budget, so that you can obtain title insurance through CMHC (Canada Mortage and Housing Corporation).
Property Transfer Tax
Property Transfer Tax is still applicable unless you are exempt.
Property Transfer Tax Exemptions for new homes info:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions
You will see a new build option here, but this is for new homes built for under $750k, which let's be honest, isn't happening much these days!
Hold Back!
With a newly built home, there's what's called a “hold back” of 10% of the purchase price, not including GST. This 10% holdback is released to the seller (home builder) once the deficiencies you have agreed upon are remedied.
New Developments in Nanaimo
I spoke about Hammond Bay in my last blog about North Nanaimo. As I mentioned, North Nanaimo is one of the top neighbourhoods and is seeing even more growth on Golden Oaks Crescent and Golden Oaks Drive. This spot was being developed when we were on our own home search here, and we loved the look of the (area albeit a little more cookie-cutter). With some homes still under construction, you're looking at over a $1 million budget.
Golden Oaks is an area high up on a hill that overlooks Departure Bay. If the home itself that you choose does not come with a view of the ocean, you'll still be satisfied with what you can see strolling around your new neighbourhood!
Jingle Pot Road is a long stretch of road that was the original Highway for miners in Nanaimo and runs from just below Long Lake, North to South-East, at the base of Mount Benson.
As Jinglepot starts to run West to East, a small area below Westwood Lake would be considered “South Jingle Pot” and above that “North Jingle Pot”
Just south of the number 19 Highway (or the new highway) is a subdivision with lots of new homes right on, or in the offshoots of Jingle Pot Road. North Jinglepot is so diverse in what kind of properties it offers. From more rural communities to areas like this that have a more “close-knit” community feel. Because Jingle Pot Road covers a huge section of the city it's super handy to have nearby! Having a quick way to get to South Nanaimo is great because that's where you'll find the Rec Center, Aquatic Center and Ice Arena! This is one reason why people love the South Jingle Pot Community as well.
Speaking of South Nanaimo, there seems to be a lot of new homes popping up on Monga Road and the surrounding streets so f you like the charm and amenities of South Nanaimo, but want a home for under $1 million, this is an excellent area to consider!
Upper Lantzville is an area to keep your eyes on! If you like the idea of being out of the city but close enough that it's still convenient, take a look at some of the new homes being built up on Aulds Road. I recently discovered this area while exploring the hiking trails at Copley Ridge with my dogs. You need to take a drive up there and explore the views for yourself! I'm sure this is one of the reasons prices hike upwards when exploring this spot, as prices here are over $1 million. I'm confident that development is going to continue and this place is going to be in high demand in no time. I'm excited to continue to update this list and look forward to keeping you all up-to-date!
