Are you planning to invest in heritage property? You’re surely not the only one who appreciates the prestige factor that comes with heritage homes. But for every investor captivated by such an opportunity, you’ll also find one who fears low resale value and plenty of adversities on the way.
If you’ve set your eyes on an amazing heritage property, here are 7 things you should remember before jumping at this opportunity.
1. Do your research
Let’s begin with the term “heritage property”. For a building to be considered heritage, it needs to fulfill several requirements. Most of the time, it’s somewhat unique, historically important, or has architecture which is worth preserving.
Before settling on a property, make sure to do your homework and learn what type of heritage property it is and what it means for you as its potential owner. Every type of heritage property has different rules and regulations around them.
For example, in the Australian state of New South Wales, a “heritage item” is a famous landmark of historical significance, and it’s different from a property located in a heritage or conservation area.
Find out more about your property by getting in touch with the local heritage adviser or similar officer.
2. Don’t forget about opportunities for extra funding
Investing in a heritage property means that you’ll become the owner of a building which is important to the local community and government.
If you happen to invest in a property of major heritage significance, you might be able to apply for special grants or loans to help fund its maintenance or conservation.
It’s also your duty to learn about different restrictions that come with different types of heritage designations. These might pose limitations in terms of construction works and alterations carried out at your property.
Make sure to check them all if you’re planning to alter the exterior or interior structure of your property. Sometimes the restrictions apply to the entire interior of a property, other times only to the land surrounding it.
4. Remember that renovation costs might be higher
That’s the biggest fear of those who avoid investing in heritage property. The cost of renovating a heritage property might be higher than expenses that come with renovation projects on regular properties.
The reasons can vary from the need to use particular materials to consultations with specialists – for instance, architects who know the heritage property or trades people who possess the qualifications for carrying out the works.
Many investors believe that heritage property simply can’t be altered or renovated. That’s not true. It’s possible to renovate your property as long as you respect the rules and guidelines designated for its heritage type.
5. Do your homework on insurance
Insurance is one more important element to consider. It’s true that home insurance for a heritage property might be harder to obtain. That mainly depends on the type and rarity of the property in question. Partial damage is a common issue as well.
If you’re planning to invest in a very rare property, you should do some research on the building’s insurance before making the first move. The insuring agency will need to draft a plan that would cover the repair costs in accordance with the requirements for the property type.
6. Prepare for a long-term investment
If you think investing in a heritage property is a quick business, you’re in for a surprise that might cost you a lot. Investors who make a profit on reselling their properties usually keep and maintain them for a long time, often putting in a lot of effort and resources into renovation. Heritage property isn’t a good pick for short-term investment.
7. Keep calm and consider heritage as an aspect of planning control
All in all, heritage is just another type of planning control. Any development requires a range of approval from the relevant authorities, whether it’s heritage or not. Don’t let yourself get discouraged by people who claim that heritage properties bring more trouble than joy.
Heritage homes in established areas are a real catch on the property market. They’re considered well-performing assets which add value to the area. Investing in a heritage property can be quite an adventure. All it takes to make a good investment is thorough research.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
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