What Should Investors Know Before Moving into a Historic Home in NYC?

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Answered by: Megan, An Expert in the Investing in Real Estate Category
A person buying assets in the City of New York may see a historic house and love it. Before buying a historic home in NYC, as attractive as it may be, there are constraints and costs one should know about. Being an owner of an exclusive house is appealing, but one may experience difficulties when buying an antique house. For example, there are grave structural problems one wouldn't encounter in new houses. There are also unseen problems which can surface in future.

There are guidelines for rehabilitation one needs to follow so as to own a historic building, for example, you cannot rebuild a house or replace it, only repair it. For one to preserve their historic house or premise of business one can be considered for important fiscal incentives like credits of tax and grants since districts with historic houses are recognized by the National Register of Historic Places and also the State.

What are Historic Homes?

Historic homes are defined by the National Register of Historic Places as homes with a substantial style that reveal signature architectural planning, linked with prominent persons in the past, or homes that capture an event in history. Homes in titled districts are also included in the category.

Advantages of Possessing a Historic House

Most homeowners are attracted by the distinctive design and artistic features possessed by historic houses which have endured time trials. There are more advantages of possessing a house in the City of New York. In some instances, tax incentives are given by local governments for reinstating or conserving such buildings. However, one has to qualify so as to acquire the tax incentives. One may not get wealthy but gets benefits which they wouldn’t receive if they bought a new house.

Purchasing a Historic Home

There are some things one should do once they see an antique house they want to buy. These include;

     Make sure that the standards of health and security are met by carrying out a test on the asbestos, lead, and paint.

     Refer a capable and skilled house assessor or mechanical engineer specializing in antique houses to carry out a proper house inspection.

     Acquire approximations from resident contractors on necessary repairs needed.

     If the house of your dream is suffering key structural problems, leave it.

It is important to study with care the set rules of restoration of historic houses as enacted by resident laws or the state. One may discover expansions or plans of remodeling that they can’t manage to fulfill.

Restrictions of Historic Homes in NYC

The main aim of rehabilitating historic buildings is to keep the original structure and nature therefore buyers of these homes are required to acquire special permits if they want to rehabilitate the properties because of the restrictions put to safeguard the charm of the property or neighborhood.

Restrictions and Added Costs of Possessing a Historic House

Taxes: One is eligible for tax incentives once they capitalize on a historic house or district that rehabilitation and conservation are a priority. Taxes levied in these properties are higher than those in other neighborhoods or districts.

Additions: Seldom do people get permits to add material to historic houses.

Utility bills: Utility bills of past years should be investigated before buying a historic house. Energy consumption for heating and cooling is often higher in old homes than in new homes.

Rooftops, frames and shutters: Preservation of rooftops, frames and shutters is necessary as they are the outer areas of a home hence signify the original style. Use of costly materials will be an additional cost.

You will be able to make an informed decision after weighing the advantages and disadvantages of buying a historic home in NYC.

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