In my prior post I highlighted a listing that sold at substantial discount due to its heritage designation. These properties are widely misunderstood and, in many cases, undeservingly stigmatized. Oftentimes they trade at a discount because agents and buyers are unaware of the optionality and potential such listings have. As a result, over the last 5-6 years there has been a noticeable trend that has emerged by real estate investors searching for more value as cap rates continue to get suppressed. With the guidance of realtors, architects, and builders who understand heritage restoration this example showcases how even the most overlooked properties can abide by the rules of ‘preserving the heritage’ of the properties while modernizing the homes.
With most heritage homes some of the practical deterrents are ceiling heights in basements and total square footage of livable space. These have been addressed using house lifts, where the properties are lifted for new foundations and usually moved within the property boundaries to allow for better use of available land when designing layouts and building additions. This is an example of a home that was bought well below market a few years ago in Old Markham and was fully transformed to an appealing home that’s in ‘character’ of the neighbourhood while preserving its heritage designation. #realestate #markham #heritage #investor
The Heritage Home Opportunity (Part 1)
