Impact of Heritage Listings on Property Value John Smith December 4, 2013 Home Inspiration Heritage listed properties are stunningly archaic structures that transport us back several eons to what our grandma would surely tell us was ‘a much simpler time’. Heritage listings are not only valuable on account of their indisputable aesthetic allure but also because of the history embedded in each brick on their walls and every pattern on their roofs. However, heritage sights can often require more maintenance due to their age and can restrict renovation opportunities. Because of these varying factors, there is often dispute over whether heritage listing improve or reduce the value of a property. Studies Show It’s Not the Be All or End All Numerous studies conducted over the last two decades demonstrate heritage listings do not dramatically alter the value of a house. Generally speaking, factors such as zoning, lot size, crime rates and amenities impact the value or a property more heavily than heritage designation. Studies such as Economic Effects of Heritage Listing (1995) and Managing Cultural Heritage: Heritage Listing and Property Value (2005) show that listed building usually induce higher total annualised returns than non-listed buildings and listed buildings attract just as much occupier demand as other categories. Various other studies have demonstrated that heritage listings increase in value more starkly when located in inner metropolitan areas, country locations, if the owner doesn’t aim develop the property. There have also been findings that properties with heritage listings induce wider community benefits, negotiations with listed buildings may take longer to be finalised. This goes to show that the market context within which heritage listings lie is imperative to the value of the property. Heritage designation does not dramatically impact upon market value as it remains just one aspect in a sea or other variables. It is therefore difficult to isolate the exact effect of heritage listings on property value. Because of this, it is always a great idea to seek heritage advice and report from industry experts to better understand the value of the property, renovating constraints and more. Cons The major negative of heritage listed properties, as mentioned previously, is that you are constrained in development’/redevelopment potential of the building. If a site is designated as holding particular significance to a locality, state or country via a heritage list, this property must be preserved in its original state as much as is possible. This means that owners are restricted in their ability to conduct renovations or major alterations to the property if looking to create a higher value. Some heritage buildings also require increased maintenance to retain its structural and historical integrity. However, the renovation restrictions vary between buildings and areas and there are many simple ways to undergo heritage building restoration and adaptive reuse. Pros This very fact that heritage listings hold particular historic significance, and the restrictions placed upon them of not being able to be destroyed or altered emphasises the immense natural beauty the property holds. Owning, living in or using a site with so many stories veiled amongst the corners and crevices is a unique and enthralling experience few can enjoy. In stark contrast to building modern buildings with white washed walls and box structures, homes with heritage listings are quaint, they have their own history to tell and they allow to create a home filled with unmatched character and personality. In short, heritage listings don’t dramatically alter the value of the house. Therefore, the decision of whether to buy, invest or live in a heritage designated building depends on normal market factors and personal preference. If you are looking for a property to renovate, it would be wise to steer clear. Yet if you are dazzled by the character and homely feel of the structures of yesteryear, heritage listings are the ideal way to go. It is always beneficial to get expert advice about the status of a building and the restrictions placed upon it, so contact Rappoport for professional and personalised information. Share this:Click to share on TwitterClick to share on Google+Click to email this to a friendShare on Facebook Leave a Reply Cancel Reply Your email address will not be published. Name* Email* Website Comment Notify me of follow-up comments by email. Notify me of new posts by email.