Understanding Heritage Property pricing for savvy buyers

Heritage properties can make extraordinary homes and are often excellent long-term investments. However, owning a piece of history carries a few responsibilities, and potential challenges, that buyers should be aware of before diving in.

Pricing

Davidson Jacobs, regional sales manager for the Rawson Property Group, said there are three main areas of concern when buyers consider a heritage property.

“The first is pricing. A lot of heritage homes carry a premium price point that might be off-putting from an investment perspective. In reality, the same factors driving some heritage properties’ above-average price points can make them surprisingly successful long-term investments.

“A lot of heritage properties occupy prime locations on larger-than-normal grounds. They also tend to have more spacious rooms, with elegant proportions and high ceilings, and often feature architectural detailing in extremely expensive finishes by today’s standards – things like wide plank hardwood flooring or sheets of exotic marble.

“Even South Africa’s more modest and affordable heritage homes tend to have charming – and hard to replicate – design features that maintain a certain timeless appeal. As a result, their desirability and value typically appreciate very well, as long as they are properly cared for,” said Jacobs.

Maintenance

Jacobs said maintenance is often a concern for heritage buyers, not just because older homes can sometimes require more care than their modern counterparts, but also because their construction methods are often a little different.

“There can be a learning curve when getting to know the quirks of a historic property, and figuring out the right approach to repairs and maintenance projects. In general, however, heritage homes are built to last and are often remarkably sound for their advanced age.

“It’s still essential that buyers do a professional home inspection to make sure they know exactly what they’re signing up for,” said Jacobs.

Regulations

Jacobs said that while heritage properties don’t always require significant maintenance, buyers need to be aware that any building work on them may be regulated.

“All properties over 60 years of age are protected under the National Heritage Resources Act. The extent of these protections varies depending on a property’s heritage grading.”

This is something Jacobs advised all prospective buyers to investigate before signing on the dotted line.

“Broadly speaking, there are three heritage grades that can be assigned to a heritage property. Grade I applies to heritage resources of national significance, Grade II to heritage resources of regional significance, and Grade III (broken into IIIA, IIIB and IIIC) to resources that may or may not have strong historic significance on their own but have contextual significance as part of an area or neighbourhood,” said Jacobs.

Jacobs emphasised that the lower the grade, the tighter the regulations, with the majority of heritage properties on the market in South Africa falling into Grades II and III.

“Just because a property is regulated, however, doesn’t mean its owners will need to bend over backwards to give their home a fresh coat of paint or install a few discreet solar panels.

“The entire purpose of heritage regulations is to preserve historic properties for future generations. That means there’s no benefit in preventing owners from doing the necessary maintenance or improvements to keep them in good, livable condition.

“In most cases, as long as alterations don’t detract from the historical importance of a property or that of its neighbours, it’s not too difficult to get the necessary approvals.

“At the end of the day, heritage homes are best bought by heritage lovers who are going to cherish the same characteristics that make these properties national treasures. Preserving a piece of our country’s past is a responsibility, but it’s also an honour. If you’re willing to respect that, a heritage home can be an excellent, and very fulfilling, investment,” said Jacobs.