Should I Buy a 30+ Year Old Condo? Why it May Be a Great Idea

Posted by Dave Kotler on Thursday, November 14th, 2024 at 10:02am.

New multi-family home builders in Kelowna can hardly keep up with demand. People are quick to put deposits down for a brand-new luxury condominium with a modern floor plan. They want the latest design, luxury finishes, the stainless appliance package, and space-age technology in their homes. Many are attracted by the additional amenities that builders are happy to provide (for a price), like party rooms with full kitchens, a barbecue area, a fitness centre, or even a pool.

However, an older condo building in an established neighbourhood in Kelowna could be an affordable and attractive alternative to the splashy new building. Here's why you should consider buying an older condo:

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Top 7 Things to Know About Buying an Old Condo

The building's maintenance history is the single most important factor in whether buying an old condo is a good investment.
New condos don't guarantee that you won't run into maintenance issues.
Don't compare old condo maintenance fees to new condos. New condos often raise their condo fees after their warranty expires.
Old condos typically offer more space at a lower price than new condos.
Old condos are in established locations, often closer to the city centre.
Condo associations in older condos typically have more owner investment and greater knowledge of what it takes to keep the condo running smoothly.
Old condos have more character, and often more personalization potential.

Older Condominiums Offer More Room

No doubt you've heard people say that when it comes to homes, they're not built the way they used to be built. The same holds true for condos. While design and lifestyles have evolved over the last 10 years, with extensive use of windows that can be the entire length of the room and open floorplans, the available square footage in some newer condos seems to have shrunk. The average size of a two-bedroom condo in Canada is approximately 700 square feet. Older two-bedrooms can be, on average, just over 1,000 square feet. Much of that extra square footage is often in the bedrooms.

Open-concept living has its advantages, but there's something to be said for clearly defined spaces. For the homeowner who enjoys a bit of privacy in the kitchen or doesn't want a pile of dishes nagging them from the corner of their eye, having a wall between the kitchen and living space can be a good thing. Furniture like TV stands are often best set up against walls, so having fewer walls can limit the best ways to lay out a given room. Walls also absorb noise, giving residents a bit more privacy overall. Who doesn't want a space a bit away from the action to be able to listen to music without forcing everyone else to listen as well?

Older Condos Let You Get More for Less

Older condominiums are often more affordable than newly constructed units, and prices vary greatly even within the same community. Depending upon the location, there can be a few thousand to several tens of thousands of dollars difference in real estate pricing for new vs. old condos.

Also, when looking into cost compared to condominium size, buying an older condo offers more square footage at a lower price. As discussed above, many older condos were built with larger, more spacious living areas, with fewer units per building. Ultimately, you are getting more for less, and the final sale price of the older condo is far less than a newer, much smaller unit. (Much, much smaller in the case of micro condos!)

Older Condos Have a More Sustainable Condo Fee Structure

A shiny new building might often advertise low condo fees, even with those sparkling amenities. Older condominiums might have more expensive maintenance fees on the listing, but historically, when new condo buildings get up and running, their advertised fees will usually go up.

There's a warranty on new condominiums from the developer, but that will expire. A new building is untested and there could be hidden structural defects that would have already been apparent and fixed in an older building. Things like the boiler, the elevator, and even the swimming pool in a brand-new complex haven't experienced the demand of a fully populated building. Much like buying a new construction home, unknown factors will show up as the building settles with the first full cycle of the seasons.

An older building is stable. The amount of money it takes to operate the building and conduct annual maintenance is established. If there's a good condo board, there should be a healthy reserve fund which a new building's board has to start saving for. Certainly, keep an eye out for maintenance red flags regarding the building's upkeep, but a new building won't have enough use put into it for those potential warnings of faultiness to even show up.

Established Kelowna Neighbourhoods Have Everything In Place

Older buildings in Kelowna's inner-city areas are established and ready for you to start experiencing. There's a neighbourhood culture waiting for you to enjoy. There are nightlife hotspots and favourite pizza restaurants, shopping and good transit service, local art galleries and places to watch live theatre. City infrastructure is already there. If you need a school or a nearby medical facility, those things are already in place.

Buying in an older neighbourhood also has benefits like mature trees and high walkability, which are highly desirable features among homebuyers.

Older Condos Are More Likely To Have Established Communities

An established condominium development most likely has residents who have called it home for several years. A new building, by its nature, doesn't have an established community yet. Investors also tend to be more attracted to newer buildings, so rental condos are more common there; older buildings typically have a larger ratio of units occupied by owners.

All this means that attendance at condo association meetings is usually greater in older buildings, and the association members have often already worked out the kinks in keeping the building and the community running smoothly. In a new building, a smaller pool of people might make very important decisions affecting everyone.

Older Condos Have Great Personalization Potential

Remember how older condos tend to be more affordable? That means there's more room in most homebuyers' budgets for upgrades and renovations. With a newer condo, buyers might get the newest appliances, but with an older one, buyers have the chance to upgrade to the appliances they think are better.

Older condos also tend to be far less identical than condos that have just been built. Over time, the condo complex's residents will have added their own touches, just as a new buyer will, and their appearances will have gradually diverged to create homes with their own personalities. Much like older homes, older condos can benefit from the charm and character that comes with age.

How Old of a Condo Should I Buy?

Buying an old condo has plenty of benefits, but there are valid concerns about buying in an older building. How old is too old when it comes to condos?

Long story short, it all depends on how well-maintained the condo is, and how well it was originally built. Deferred maintenance is the single biggest red flag in buying an old condo. But there are plenty of 100-plus-year-old condos that are still going strong, just as there are plenty of new condos riddled with problems. Do your due diligence and examine the condo association's reserve fund and history of performing maintenance.

Should I Buy a 30-Year-Old Condo?

By this point, some components of the condo may be reaching the end of their useful lifespan. Here are some items to take a closer look at:

Furnaces and Boilers
Roofing
Siding
Asphalt
Pool Lining/Shell
Windows

If they haven't been replaced already, you may be looking at a hefty special assessment within the next decade. Because condo ownership includes partial ownership in common areas, the bill will be split among all condo owners, but it can still be quite large. Many condo buildings will also require the building envelope to be repaired, which is costly.

A condo inspection usually only covers the interior of the unit, including electrical, major appliances, and plumbing, but does not include common walls, structure of the building, etc. If the condo has been mismanaged, some hidden damage may not be apparent.

Should I Buy a 50-Year-Old Condo?

By this point, copper and plastic water lines, some forms of foundation waterproofing, exterior stucco, vinyl siding, and more could be approaching their replacement date. Other components may be coming up on their second or even third necessary replacement.

Original interior components, such as cabinetry and engineered wood floors, may also be at the end of their useful lifespan. If these haven't been replaced in previous owners' renovations, it's something to consider.

Should I Buy a 100-Year-Old Condo?

A well-managed condo that has a history of timely maintenance and good financial planning can easily stand the test of time—even if it's a 100-year-old building. Old condos were built to last, and properly engineered structures can last for centuries. By this point, there will be evidence to show you whether the condo association is capable of maintaining the reserve fund necessary to keep the building in good shape.

If an old condo is well-maintained, it's very possible that it could be a better buy than a new condo. If a new condo has been built cheaply, owners could run into problems within just a few years.

What Happens When a Condo Building Gets Too Old?

If a condo hasn't been managed well enough to age gracefully, there will likely come a point when major repairs must be done, and the condo association doesn't have the funds to complete them. Unfortunately, many condo associations are underfunded—owners don't like raising association fees, and often, the board doesn't have members with the correct background knowledge to evaluate the necessity of repairs correctly.

When this happens, there are a few options the condo owners can take:

Accept steep special assessments, sometimes up to tens or even hundreds of thousands of dollars.
Sell to a developer and split the proceeds among owners.

There will be bylaws outlining how decisions are made regarding the condo building's fate. Of note: condo owners don't need a unanimous vote to sell the building. In British Columbia, if 80% of owners agree to sell to a developer, the remaining 20% must comply. Luckily, developers will often offer more than fair market price to entice owners to sell, but this can still be a major concern.