I wouldn't say the value of real estate decreases because something gets old. Some older condos may have excellent strata councils that maintain the complex very well - thus, the value of the building is preserved over time. I believe the value of real estate increases or decreases over a large region due to various economic reasons - but the rate of appreciation is certainly affected by the age of a building. Older buildings tend not to appreciate as quickly as newer buildings. If you're not planning on selling for a while, buying a condo in an older building could be cost effective choice.
Investing in a condo can be a great investment or it can be a condo owner's worst nightmare. The age of the building plays a factor but not as much as supply/demand, housing market fluctuations and mortgage interest rates.What you have going against you in looking at a building this age are capital expenditures. All capital expenditures are shared equally amongst the owners of the building. Such capital expenditures to replace the roof, replace all existing plumbing, replace the buildings exterior windows due to leaks could run into thousands and thousands of dollars. We have friends for example that moved into a condo building that was only 15 years old. They along with all of the other owners are having to pay $60,000 each to cover the cost of major restorative repair work. [may of been the roof] They needed to remortgage the place to cover this cost.Before investing in a building of this vintage I would check very carefully into its repair history in terms of what major over hauls have already been done and more importantly what projects are slated for the near future. If you don't then what may have seemed like a bargain may turn out to be your worst financial nightmare.
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