For the mouthful that it is, heritage designation is a surprisingly simple concept, and in many cases, a worthwhile investment. While properties designated under the Ontario Heritage Act have been publically identified as significant to the province’s cultural heritage, they are also often overlooked and misinterpreted by potential homebuyers. And while the next cookie-cutter suburban lot may offer the appeal of the new, the misconceptions that frame heritage properties lead to the reality of missed opportunities.
Here are five numbers to help decipher the economics behind heritage designation…
Photo by D. Callahan
Zero.
The number of courses focused on heritage properties required to obtain a real estate licence in Ontario.
Buyer, be warned. While courses on heritage designated properties are offered by Ontario Real Estate Association (OREA), no formal education in the field of heritage real estate is required for obtaining a real estate license under OREA. Thus, some real estate professionals may not have the knowledge required to properly market a designated heritage property, and not all real estate professionals are experts in the field of heritage real estate. Furthermore, some unknowing real estate agents have avoided and advised against investing in heritage properties, contributing the spread of misinformation and missed opportunities.
Photo by D. Callahan
Two.
The number of real estate markets to contemplate when considering heritage designated properties.
There is the general real estate market that encompasses the data of all properties of an area. From national statistics to city-specific data, these are the real estate averages, trends, and predictions you read about in the newspapers and hear about on the radio.
While it is important to consider these trends when in the market for heritage real estate in that particular area, one also ought to pay at least as much attention to the statistics of the niche market for heritage properties, which often does not follow the reported trends of the general market. Rather, as heritage conservation scholar, Robert Shipley, has suggested,
...a comforting thought amongst the dreary predictions of upcoming market corrections in many Canadian cities.
Photo by D. Callahan
59%
The amount of individually designated properties across Ontario that performed better than average in their value history trend when compared to the average property value trend in their communities according to a study completed in 2000.
An additional 15% of properties performed comparably similar to the average performance in their neighbourhood. Case studies in other western countries in Europe, USA, and Australia have demonstrated similarly positive results over the course of history, demonstrating a pattern of universal values amongst consumers throughout the globe.
Photo by D. Callahan
10-40%
The annual municipal and school board property deduction awardable exclusively to designated heritage property owners as per the Ontario Government’s Municipal Act, 2001. Of the 33 Ontario municipalities that support active rebate programs, more than half offer the full 40% deduction.
That's right, designated heritage property owners are living the dream AND cashing in just for maintaining their properties. Every. Single. Year.
Photo by D. Callahan
$500-$10,000
The amount of money that the City of Mississauga offers designated heritage property owners in annual grants per approved restoration or reconstruction project.
Like many other Ontario municipalities, Mississauga matches homeowner's dollar for dollar to restore architectural elements and property soundness, making a unique homeownership experience, a more affordable one.
So, is heritage designation is code for red tape or is it a red carpet opportunity?
Interested in learning more about heritage designations? Check out the Government of Ontario's Heritage Tool Kit.
Like the photos? Give Streetsville photographer and local a follow @akamarthacdn.
To learn more about heritage properties, check out the links below: