In another blog, here at Capital Asset Properties, we addressed the importance of preserving historic buildings and highlighted some of the ways of doing so make a difference to the local community. Now, we’d like to highlight some of the tangible benefits of preserving historic sites and how it can make a significant difference to people living and working near these buildings. Preserving historic sites is a valuable way to hold onto culture and memories of the past, but there are also important modern reasons to preserve these buildings.
One of the biggest benefits of preserving a historic building is the tax breaks and incentives it provides the investor. Older buildings often cost a lot in upkeep, especially if they’ve been left alone for a while and are now being worked on in order to serve a new purpose. The tax breaks associated with preserving historic buildings offer great incentives for those who are passionate about history and are willing to put in the effort to preserve a historic building. For investors who work with other kinds of real estate, preserving historic buildings is another great aspect of real estate to explore.
By investing in preserving historic sites, investors can gain a charitable donation deduction and offset the cost of other projects or just reduce ordinary taxable income from other sources. At a federal level, there are tax credits to encourage investing in the preservation of older buildings, which began during the Tax Reform Act of 1976. Investors can receive grants at the federal, state, and local levels and secure low interest loans. In Capital Asset Properties experience, the ratio is about $4 of charitable deductions for every $1 invested in the project. Investors often see great returns on these projects, which benefits the community as well.
When a historic building is preserved, it is often redone in order to revert it to its former glory and give an accurate idea of what it was like when originally built. Sometimes, historic buildings may be used for another purpose, but regardless, once buildings are identified as historic and preserved, they’ll begin attracting tourists.
Boost local economy
Historic buildings can help the local economy in several different ways. As mentioned above, tourists will begin visiting the city in order to see the historic site, which helps stimulate the economy. Tourism provides other businesses with income and often makes a city a safer and more attractive place to permanent residents.
Historic buildings can also become homes to new businesses, such as a hotel, a restaurant, or simply a storefront. Sometimes, offices go into a historic building. Finding new uses for these older buildings boosts the economy by providing more jobs and attracting new businesses.
When a building becomes preserved, it means that it is no longer falling into disrepair and making the neighborhood look dilapidated. If a city has several abandoned buildings that are being used for nothing, it can drive down property value and discourage tourists or permanent residents. When buildings are preserved, it makes the entire city look more attractive.