Do you want to invest in a historic center?

Do you want to invest in a historic center?

In this article, I share with you some considerations to ensure your investment.

Beyond their beauty, the historic centers of Mexico represent the identity of our traditions and culture. They reflect the invaluable history of the archaeological, artistic, and historical monuments.

The Secretariat of Public Education, the National Institute of Anthropology and History, the National Institute of Fine Arts, and the other cultural institutes of the country, in coordination with the state and municipal authorities and individuals, carry out campaigns to promote the awareness and respect of these monuments. They also work to gather efforts to regulate the cultural heritage of the nation. The state and municipal authorities will apply the Federal Law on Monuments and Archaeological, artistic, and historical zones.

It is very important to consider that these are archaeological, artistic, and historical zones and monuments that have been determined by the law, and have been declared as such either officially or at the request of a party.

I will focus only on historical monuments in this article. Article 35 of the aforementioned law states that historical monuments are assets linked to the history of the nation, from the establishment of the hispanic culture in the country, in the terms of the declaration or by determination of the law. Buildings constructed in the sixteenth to nineteenth centuries, temples and their annexes; archbishoprics, bishoprics, and cultural houses; seminaries, convents, or any others dedicated to the administration, dissemination, teaching or practicing of a religion; as well as education and teaching, for healthcare or benefits; to public service and decoration and for the use of civil and military authorities. Furniture that is or has been found in these properties and the relevant civil works of a private nature made from the sixteenth to nineteenth centuries.

Because of the uniqueness of these properties, they are very much appreciated by investors. If you are thinking about investing in a catalogued property and you want to remodel, it is very important that you consider what is indicated in articles 6 and 7 of the aforementioned law. There, it states that “the owners of property declared as historic or artistic monuments must conserve them, and where appropriate, restore them in the terms of the following article, with prior authorization from the corresponding institute.

Now if the building you wish to remodel is not part of the INAH (National Institute of Anthropology and History) catalog, you must consider carrying out the precepts of the law since the property is within the zone of historic monuments. Due to the location, the property increases in value in the real estate market which is why it is very important to obtain the correct permits if you wish to excavate, build a foundation, demolish, or construct on the property in any way that may affect the characteristics of the monument.

There are advantages for investing in historical buildings or monuments:

  1. The properties of real estate declared as historic or artistic monuments must be maintained and conserved, and in the event that they must be restored, the owner may request a property tax exemption[1].
  2. The property value in the real estate market increases by approximately 20-40%.
  3. A catalogued property is authentic and unique.
  4. Historic centers are high-value tourist destinations. Being a part of them increases your possibility of receiving commercial benefits from this kind of tourism.

It is very important that you are well informed when you decide to build in a historic center and that you are accompanied by a group of professionals trained in the management of licences and a group of architects with experience in the restoration and conservation of property declared as monuments[2].

At SILMEXICO INVESTMENT PROPERTIES, we have a wide range of local properties in historic centers in cities such as Oaxaca, Mérida, and very soon in Guadalajara. We also have a specialized team of managers who can help you to guarantee your investment.

 

 

 

[1] Provided that they comply with the provisions of the corresponding legislation and that they are not exploited for profit and after obtaining an expert opinion

[2] The law states that to execute renovations or excavations without the corresponding authorization or permission, or those that violate the stipulations, will be suspended by the INAH provision, and where appropriate, will be demolished by the concerned party or the institute, as well as its restoration or reconstruction.

Pin It on Pinterest

Share This