And, although the market does fluctuate according to the prevailing economic climate, downturns have a silver lining in that they present excellent opportunities for first-time buyers looking to enter the market and for investors looking to buy up older homes and profit through savvy upgrades and renovations.
But purchasers need to be aware that the National Heritage Resources Act (Act 25 of 1999) broadly defines a historical structure as any building older than 60 years and, as we’re now well into the 21st century, this category increasingly includes properties with no historical significance whatsoever.
And whilst South Africa has a rich architectural heritage spanning several centuries and the preservation of historical buildings for future generations is of incontrovertible importance, many of the buildings technically classified as historical are merely old, but subject to the same regulations by mere virtue of their age.
What the law says
Under the Act, ‘no person may alter or demolish any structure or part of a structure which is older than 60 years without a permit issued by the relevant provincial heritage resources authority’ which can make things a little tricky, especially for buyers looking for renovation projects.
And, although most buyers are aware that heritage properties are subject to restrictions, they often mistakenly assume that this applies only to beautiful period homes with distinct architectural styles and not the generic, run-down but affordable, fixer-upper on which they have their eye.
Unless it’s been applied for and approved, the Act does not allow for differentiation and, regardless of a property’s historical significance – or lack thereof – the 60-year yardstick is strictly applied.
Furthermore, unauthorised alterations to these properties could have costly consequences, which are likely to include the restoration of the building to what it was before alterations were begun.
Permissions and consequences
That said, the aim of the Act is preservation, not the impediment of development so if owners follow the proper procedures, there is considerable leniency, especially on the interior.
And, for properties proven to have no actual heritage value, an application can be made to waive the heritage status if good cause can be shown, even as far as obtaining a demolition order.
However, neglecting to obtain the necessary permission will incur both the usual penalties for making alterations without approved plans as well as a second penalty for making unauthorised alterations to a heritage property and all work will have to stop until the matter is resolved.
Cases such as these can drag on for some time – even years – and the property owner will have to foot the bill for the demolition of illegal work should the case be lost.
Know your heritage
The acquisition of an older home may seem daunting but, in this case, knowledge really is key. Broadly speaking, heritage properties fall into one of three tiers of varying restrictions and regulations.”
Tier One: Heritage Overlay Zone, which protects the unique character of an entire area rather than a single property and these are usually historic suburbs like Wynberg Village, St James and Little Mowbray;
Tier Two: Specific to individual properties, it applies to any building older than 60 years or of particular architectural value. These include the beautiful Victorian homes in Rondebosch and the Cape Dutch properties in the Constantiaberg;
Tier Three: Only applicable to buildings that have been officially classified as National Monuments or Provincial Heritage Sites.
The higher the tier, the more stringent the rules, so make sure you do your homework and, if in any doubt, consult experienced professionals.
Is there any onus on sellers to declare heritage status?
If a property falls in the heritage category, sellers should always declare the fact as it affects the property’s value, either positively or negatively, depending on the buyer’s purpose. And, for many, owning a heritage building is, after all, a privilege.
This should also form part of the agent’s listing questions to the seller when they first list a property.
But purchasers need to be aware that, although the rule of “beware the buyer” is softened by the Consumer Protection Act (CPA) for investment properties, it does not apply to sellers of their primary residences.
So, unless you are buying a home off plan or one that you know was very recently built, it’s advisable to ask as many questions as you can about the property before putting in an offer. Are all alterations approved and on the current plans, have any structural defects been repaired and, of course, is the house of heritage age.”
With the current economic climate placing increasing pressure on consumers, unrenovated homes built in the 1950’s and 60’s are considered good options by many as they’re generally accessibly priced and can be upgraded and adapted to suit changing needs as and when finances and time allow.
However, as they now fall under the Heritage banner, buyers need to go into these purchases with their eyes wide open in order to reap the benefits and not tumble headfirst into the potential pitfalls.
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