Welcome, friends. Imagine you are in a downtown area and come across a stunning Victorian home with exceptional curb appeal, transporting you back in time. The property displays a 'For Sale' sign. In today's talk, we'll discuss what it takes to buy a heritage property and the considerations involved in selling one.

Buying and selling a heritage property involves a unique set of considerations. A historically designated property contributes to the cultural heritage value and is recognized for its cultural, architectural, or historical significance.

What is a Heritage Property?

A property is deemed to have heritage value if it contributes to an understanding of community or culture, has design value due to craft skills, is an early example of a style or construction method, or is associated with an event or person of historical significance. It may also have contextual value.

These designations help preserve history and ensure that future generations can witness and learn from the past, retaining the unique character and face of a town.

Heritage homes are generally designated at the municipal level as 'Special Heritage Interest'. A local heritage register will list properties considered culturally valuable. For example, the City of Mississauga has around 300 designated properties, the Town of Caledon about 165, and the City of Oakville roughly 170 heritage properties.

Type of Restrictions

These properties come with restrictions to preserve their historical integrity, often concerning the type and extent of renovations, mostly on the building's exterior. This includes the colors you can paint the exterior and the style of windows you can install.

Since the government aims to preserve the esthetics, it may require the use of non-standard materials, translating to marginally higher maintenance costs for the exterior, but then the municipalities generally provide grants for updates, more about grants later. The extent of renovations and limitations are governed by local municipal by-laws. It's prudent to do thorough due diligence when you sign on the dotted line.

City Approval for Changes

Typically, any exterior updates or changes to the heritage attributes of a building require a permit from the city. Changes to windows or doors, roofing materials, facade replacement, the positioning of exterior heating and cooling equipment, changes in masonry, significant landscape alterations, chimney additions or removals, and fence replacements all fall under this category.

However, actions like re-roofing with the same material, routine maintenance of gutters, downspouts, minor paint color changes, and internal modifications usually don't require a permit. It’s a myth that if I need to change light fixtures, interior painting or wall paper in the property it won’t be allowed, the truth is that for the most part interior elements are not included in designations. Primarily two reasons as they are difficult to monitor and secondly is the issue of privacy.

Benefits of Historic Properties

Heritage Grant Programs

Most municipalities allocate funds for heritage grants to help owners conserve exteriors and maintain heritage characteristics. These grants can be leveraged if available. [Grant photos in the background]

Municipal grants typically don't cover non-heritage attributes or property additions, and interior work generally falls outside government grants. If considering a heritage asset purchase, check your local municipal level grant programs for support. Often, the town requires owners to match the grants used for maintenance.

Property Taxes

Some municipalities offer property tax relief to heritage homeowners, ranging between 10-40%, depending on their budget.

Insurance Premiums

Insurance premiums shouldn't increase due to heritage designation. While premiums may be higher due to the building's age, the designation itself doesn't warrant additional requirements from the insurer and shouldn't impact premiums.

Lets focus on certain pointers if you are selling a historical property,

Effective Marketing

It's important to highlight the property's historical significance and unique features. Effective marketing for a historic home should detail the story and characters which property presents, appealing to buyers who appreciate heritage.

Disclosure Requirements

Full disclosure of heritage designation and restrictions is critical for transparency and legal clarity. As a buyer, it's wise to check the town’s heritage register to determine its actual status.

There is another myth which circulates that if I own a heritage property, it would mean I will have to restore my property. The truth is that by having a heritage designation doesn’t at all mean that the owner has to restore, the status is given on the as-is state of the property.

To recap, historic properties are an excellent asset to own, as we've seen. It’s a myth that they have unusually higher maintenance, its same as any other old property and how you would take care of them. They come with their own restrictions and advantages and are more heavy on the advantages side. It all depends on your personal goals and aspirations. If it aligns with them, by all means, go for it. Hope you enjoyed this talk. If you have any real estate queries, our dedicated team here at Elixir will be glad to assist. Take good care and talk to you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Off: 416-816-6001 | [email protected]