Heritage Overlays
A burden or a blessing?
This is a conversation I have had way too many times!
The common misconception that heritage protection is a bad thing astounds me.
In a recent Melbourne survey conducted by realestate.com.au, data confirms that Heritage-listed property remains a contentious issue for buyers.
Surprisingly, a huge 60% of buyers said a heritage listing would be a disadvantage, whilst only 12% said a heritage listing on a property would be a plus:
Most buyers appear to favour properties with period features, but research surprisingly indicates they aren’t wowed by gorgeous ornate features if there is a heritage overlay.
Surprising really because a heritage overlay usually only controls modifications to the exterior of a property.
The cost of buying a heritage home is expensive from the get-go. Most heritage listed homes are in the older more sought-after inner suburbs. So, there’s the exxy initial purchase price, plus reno costs, plus ongoing maintenance. And Australians do love to style a home!
Realestate.com data shows men consider heritage properties a disadvantage more than women. Maybe the blokes can’t see past the physical work of renovating (and maintaining), whereas women are perhaps more inclined to be wooed by the romanticism of the historical and cultural value of a property, and the legacy they can create.
Data also shows that both men and women over 35 were more against buying a heritage property than those under 35. Maybe the older Aussies know firsthand how challenging renovating and maintaining an older home can be. Some may be put off by childhood memories of old and cold and dark houses and prefer the modern comforts. Or perhaps too many people have had a bad experience flipping heritage properties because they didn’t hold them long enough.
Afterall, Aussies have made a sport out of flipping houses, but if they flip too soon ……. Patience is a virtue.
It is no secret that heritage overlays can create painstaking hurdles. Requirements vary depending on the property style, the area, and the local Council..
Often, heritage overlay requirements may only limit you to external paint colours, but in rare cases, even small things like doorknobs (yes, doorknobs!) must conform to a specific heritage checklist.
The biggest hurdle for property owners is getting Council approval for structural renovations. Planning permission to build additional bedrooms, bathrooms, dug out garages etc can sometimes be a bit tricky.
Nothing is impossible if you have the right people working for you!
There are some talented experts in the heritage space that know and understand the challenges and the parameters of upgrading period homes. They can work with you to create a design you love that Council will love too.
Schickerling can put you in touch with the best in the biz, please reach out on 0460 028 000 or concierge@schickerling.com.au, we’d love to help.
Heritage property will increase in value because there will be less and less of it in the future. Like anything in life, the scarcity of an asset adds value. Quite simply this means buyers need to be holding on to these heritage properties for the long-term to reap the financial reward.
Without doubt, heritage property pays off the longer you hold it.
Regardless of the market at any given time, heritage listed homes must be very carefully considered. Buyers need to take a long-term view, and sellers need to position the value of a home with legacy – something Schickerling can help you with.
With the population explosion and the constant development going on here in Melbourne, heritage properties are becoming very scarce. Now more than ever, the market is realizing how very special these heritage properties are.
If you are buying or selling a period home, connect with Jodie on 0460 028 600, or email jodie@schickerling.com.au for an obligation free chat. We would be delighted to assist you.
