Fundamental renovations on historical buildings

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Fundamental renovations on historical buildings

Thierry Van Roy
Maastricht, The Netherlands · Member since 2013 · 131 posts · 18 votes

So I'll probably get some links to older threads, but I can't seem to find them myself for some reason.

After doing a lot of research and looking at hundreds of buildings, I seem to keep coming up with awesome deals of +1 million USD in urban centers. The financing isn't the problem and the numbers look great. Because they are capital intensive, I seem able to outmarket the competition. But here's the problem: they all concern historical buildings (I invest in Europe, ancient cities like Maastricht and Liège).

These will require a lot of renovations to get them up to speed with the new EU energy-efficient requirements and such. Paint job, roofing, isolation, windows etc. I get, but with these old buildings I fear I keep missing stuff. They are in a league of their own, one less ventured.

To give an idea of what I mean: http://i43.tinypic.com/2vdi2rm.jpg

(Yes, the entire thing.)

The payback on these costs increases exponentially when I skew the numbers ever so slightly. This has me worried. Just imagine the floors are on a wooden basis and they would all have to be reconstructed. Foundations having to be redone.

Is there anyone who has experience with old buildings of this caliber? I can start asking a million questions here, but I'm probably not even scratching the surface of my potential headache. I'm grateful for everyone's input.

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  • Mary B.
    Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    12y

    I see where you are coming from. In Philadelphia particularly Germantown and Society Hill there are historical properties both SFR & MFR. The market value is immense particularly in Society Hill (we're talking millions) but there are specific guidelines that must be adhered to during any restoration. For example the exterior may be dated you can power wash it and stare at it but it can't be changed. Those of us that are quite familiar with the city and know of the potential enormous headache know to be mindful when looking for deals in those areas particularly.

    You may be highly frustrated and have to check with the historical society for every part of the property such as floors, windows, doors, outside stairs, inside stairs etc. There are particular contractors that specialize in historical restoration. They are particular stores that sell the items that you will NEED to use if you are restoring a historical property. Notice I state 'restoration' and not renovation.

    Hopefully you have trusted experienced people on your team in those countries that know what to do. That's a big job and will take months to complete so you have time to get someone from the historical society to confer with. Possibly get a list of what must stay the same in the entire building. If you don't follow the rules and change something the wrong way its wasting hundreds possibly thousands of dollars (euros) because you'll have to redo it correctly according to the historical society. Basically its better (time and money wise) to take your time and get it done right the first time.

    Kudos

    Mary

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  • Thierry Van Roy
    OP
    Maastricht, The Netherlands · Member since 2013 · 131 posts · 18 votes
    12y

    I have experienced people in Maastricht, but I recently fell in love with Liège, which gives me the added handicap of the French language (Dutch/Flemish is my mother tongue) and no 'power team' yet. But it's soooo under the radar above a certain price point, I can't pass on the opportunity.

    I didn't think of seeking out local experts on the matter, though. Or a historical society, if there is such a thing here. I guess I'll have to drop by the city council. Thanks for the advice, much appreciated!

    Other takers?

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