Historic Estates: The Hidden Advantages of Owning Stately Homes

Behind the grand exterior and rich history of a historic home, lies a hefty real estate opportunity for you. If you’re a real estate investor, whether you’re just starting or you already have a portfolio, one of the homes you should invest in is a historical estate. While this might not be a common property to include in your portfolio, it has a lot of benefits that most people don’t often see. Meaning, its benefits become better considering there are less competitors in this field.

Before you start investing in your own historic home, find out about its hidden advantages here:

Majestic property

Most historic properties you can see these days span hectares so you can expect that it’s as grand as it can be. This is something you won’t often see in this day and age, making this property already a good way to diversify your portfolio. After all, you want your real estate portfolio to have a number of different homes to cover a variety of tenants with differing tastes.

Currently, you can see little to no historic homes on sale in the Cambodian real estate market. Considering the value packed behind it, most owners don’t put it up in the market so if you see one, it’s best for you to quickly invest in it before it’s been bought. For example, right now, the first qualified architect in Cambodia who helped design infrastructures and towns, Van Molyann’s 1966 home is up for sale. It’s a 924 square meters property that you can own so check out the listing before it’s gone!

READ ALSO: First Look Inside the Iconic House of Vann Molyvann

Preserving history

One thing that separates modern architecture to older Khmer architecture is the style implemented throughout the house, from foundation up to the finish. This means, you can have a property that was built in a style that either doesn’t exist anymore or is rare to see these days. If you buy a historic home, you’re preserving the entire history packed into that house. Not only the story behind the home, but the entire structural style that comes from a different age.

Highly profitable rental property

Vann Molyvann Historical Estate For Rent – Along Mao Tse Tong BLVD, Phnom Penh

If you decide to rent out your historic estate, one thing is guaranteed: your profits will be high. Since you’re leasing a home with a lot of history behind it, grand structures, and more, are all factored into the rent price. Depending on how much you want to price it, you can be getting a monthly profit between $10,000 to $45,000. Another thing to consider as well if you rent it out is whether you lease it for a month or for a couple of days. Either way, the rental profit would work best for you.

High appreciation value

Whether your home is in a historical district or not, if it has been classified as a historic estate, its appreciation value is higher than other properties. According to studies conducted in historic districts within the United States, the average appreciation value of a historical home is 26% more than other properties. This can be higher depending on the weight of the cultural significance of the estate as well as the history behind it.

Longer lease

If you go down the route of leasing your historic estate longer, then the lease term can be for years rather than months. Generally, this can be a span of one to four years, depending on the kind of tenant you get. Moreover, probable tenants looking for a historic estate like yours are more conscientious with the historical value your home has. This means they will be more careful in how they use your home, making them the perfect tenant.

Make a profit from tours

Another way you can benefit from your historic home is by scheduling tours within the estate. Since the property is already a historical piece of evidence that most tourists, locals and foreigners alike, are most likely familiar with, then setting up a tour will make them come in droves. After all, it’s not everyday that they can see a property like this.

When you set up a tour for your property, the first thing you have to consider is if you want it to be a regular event, a few times within a month or year. Moreover, you also have to advertise it properly so more people will go on your tour, allowing you to get more profits.

Tax benefits

Preserving a historic home isn’t easy since the maintenance costs and taxes can be quite high. However, since this is part of the cultural heritage of Cambodia, there are tax benefits that are only applicable to these homes. Moreover, since there are organizations that help preserve cultural sites, it’s possible for you to apply for an easement that will help reduce property or estate tax. Check in with your local organization to know possible benefits you can take advantage of as well as your local district to determine your tax benefits.

Interested in owning a historic estate or a home with a rich historical background? While properties like these may be rare, we have a few that we can recommend.

Contact us here or via Telegram to own a unique piece of history!

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