Many people in the world desire to buying historic homes. Mainly, they wish to have one because of its charm, especially if it’s situated in a historic location. Additionally, if it is listed on the National Register of Historic Places, it can yield a high return on investment. Although these houses have a unique appeal due to their historical significance, one must consider certain factors before investing in a historic house. Read this blog to understand key factors in choosing and buying historic homes.
Historical House – Definition
Typically, a house becomes officially recognised as “historic” after meeting specific criteria set by an official body. Usually, this involves the building reaching a certain age, mostly above 50 years. Living in a historic home allows homeowners to reside in a piece of local history while enjoying the charm of a beautifully constructed house. In Canada, these historic homes are also called heritage homes.
What Factors Qualify A Home As Historic?
Simply being old doesn’t automatically make a house historic. For a home to be recognised as a historic house, it generally needs to be at least 50 years old (with a few exceptions) and meet one of these four specifications –
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- It should be linked to important historical events.
- It should be associated with noteworthy individuals.
- It represents a specific architectural or historic style.
- It has provided or is likely to offer significant historical information.
Now that you know the factors contributing to a historic home, you must consider certain factors. One such factor is that you must start the approval procedure with your mortgage lender. Because these historical regions have high prices, you should sort your budget before investing.
Advantages of Buying Historic Homes
History enthusiasts are attracted to the idea of a historic house as they feel closer to the history and culture of that region. People who generally appreciate art and architecture consider investing in a historic house. Let us look at some benefits of owning a historic house:
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Owning a Distinct Historic House
Some homeowners have an emotional attachment to their historic home. They feel passionate about owning a home with historical significance. They feel connected to the past through the property.
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A Commitment to Preserve Old Structures
Many people feel proud about buying historic homes as they share a duty to preserve historic houses and often form a community. These people willingly pay additional money to keep the historic structure intact.
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High ROI
If a historic home is well-maintained and is located in an important location, its value gets appreciated with time. These historic houses offer a high return on investment as they have good resale value.
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Hassle-Free Renovation
Home renovation can be tricky; however, certain organisations offer affordable renovations for historic houses. You can also get further assistance via loans and grants. You should contact SHPO (State Historic Preservation Office) for renovation assistance. You should check the tax credit programme of the National Trust for Historic Preservation. They might give you a tax credit for your historic house.
Requirements To Consider Before Buying Historic Homes
Requirement 1: More Maintenance
Historic houses often need more care than modern residences. If not properly maintained, historic homes can pose challenges for homeowners. The condition of your property largely relies on the upkeep it receives over time. Some historic homes on the market might require care, while others may have been ignored for a long time. These would demand significant renovations to meet modern safety standards.
Requirement 2: No Scope for Redesigning
The government usually restricts historic homes from changes in their basic design. Due to this, if you can bring major changes to the home, you might face certain issues. You’ll have to get additional approvals from the authorities informing them about the changes. Additionally, since these houses were built using older technologies, you cannot renovate them easily. For this reason, most homeowners have to be extra careful before renovation.
Requirement 3: Distinct Renovation Issues
Earlier, the majority of the homes were constructed in a manner that had proper ventilation. It helped the house withstand conditions like dampness and rotting. They were more breathable, unlike modern-day homes that are airtight and watertight. However, many contractors tend to use various raw materials for the renovation. These new materials often hamper the insulation properties of historic homes.
Requirement 4: Home Inspection
A proper inspection before buying historic homes is important. Before proceeding, check for issues like plumbing leaks, drafts, or faulty wiring. Identifying signs of water damage or dampness in advance can save you money. A careful inspection will help you create a solid plan for future renovations.
Requirement 5: Absence of Flow
Historic homes have been passed down to different people over the years. It has resulted in a lack of flow in these residences. This is because different homeowners made modifications as per their preferences. Over a period of time, these diverse designs start clashing with each other. Hence, avoiding purchasing a historic house is better if you want a cohesive flow in the home’s design.
Requirement 6: Higher Budget
When investing in a historic house, it is better to have a flexible budget. This is because the historic house might have additional costs. Additionally, sometimes it is difficult to find matching windows or mouldings with historic homes. These fittings are mostly out of trend and are not easily available in the market. These miscellaneous costs might be incurred due to complex renovations. Therefore, it is better to subscribe to premium insurance coverage for historic homes.
Possible Financial Advantages
Now that we’ve discussed the factors to be careful about when considering historic homes for sale, let’s end on a positive note. In certain cases, buying historic homes can lead to financial benefits because the state or local governments offer low-interest loans and tax incentives to the homeowners of a historic house. The reason is that when a historic home is purchased, there’s a greater chance of it being preserved than if it were vacant. Thus, before searching for the perfect historic home, you must find and take advantage of such government incentives.
Summing Up
Buying historic homes has both advantages and disadvantages. For instance, although tax breaks can offer financial savings, the potential for unexpected emergency repairs in older homes is a common challenge. Assessing the value you place on owning a piece of history is crucial. If the time and investment demands aren’t within your comfort zone, making that decision before committing any resources is advisable. As you go ahead in your home-buying journey, smoothening the process by securing mortgage approval can be beneficial. It should be done before submitting an offer on your dream historic house.
Frequently Asked Questions (FAQs)
When a house meets its jurisdiction’s criteria like age, location and historical significance, it is called a historic house.
The house is historic for various reasons, such as if it was built more than 50 years ago or if historically significant people inhabited it. In Canada, these houses are called heritage homes.
Generally, pre-history is known as the period before the presence of written records in a particular culture or society. On the other hand, history refers to the timeframe following the development of written records in a given culture or society. What is a historic house?
Why is a house called historic?
What is the difference between pre-historic and historic?
