If you own a condo in a 20-30 year-old building, you might be wondering: What happens as my condo ages? Will maintenance fees keep rising? Will the building lose value—or could it be torn down and redeveloped? And most importantly, is it still a good investment?
As a Toronto real estate expert, I’ve helped many condo owners navigate these questions. Here’s what you need to know about older condos, rising fees, and long-term value—plus whether it’s smarter to hold, sell, or wait for a potential buyout.
1. Do Older Condos Depreciate in Value?
Unlike houses, which often appreciate indefinitely, condos can lose value over time—but it’s not guaranteed. Key factors affecting value:
✅ Location – A well-located older condo (e.g., near transit, downtown) holds value better.
✅ Building condition – Well-maintained buildings with thick walls, spacious layouts, and updated amenities remain desirable.
✅ Maintenance fees – High fees can scare off buyers, but what’s included matters (more on this later).
Will Your Condo Be Torn Down & Redeveloped?
It’s rare but possible. Developers typically target:
- Low-rise, low-density buildings (easier to rebuild)
- Prime land (e.g., near subway stations, downtown cores)
- Buildings with structural issues (expensive repairs = easier to demolish)
If your condo is bought out:
✔ Owners usually receive market value + a premium (10-20% extra in some cases).
✔ You may get first right to buy into the new development.
✔ The process takes years (condo boards, city approvals, negotiations).
Bottom line: Unless your building is in a high-demand redevelopment zone, don’t count on a buyout.
2. Will Maintenance Fees Keep Rising? (And Can They Go Down?)
Maintenance fees almost never decrease—but they can stabilize if:
- Major repairs (roof, elevators, plumbing) are completed.
- The condo board builds a healthy reserve fund.
- Energy-efficient upgrades reduce operating costs.
Why Are Fees So High in Older Condos?
✔ More square footage – Older units are bigger, so fees are higher (but cost per sqft may be fair).
✔ Included utilities – Many older buildings cover heat, water, and sometimes even hydro.
✔ Fewer amenities – New condos have pools, concierge, and lounges, but older ones often have lower fees relative to size.
💡 How to Check If Your Fees Are Justified
- Compare cost per sqft (not just total fee).
- Review the reserve fund study (is the building planning major repairs?).
- See what’s included (e.g., if hydro is covered, $1,000/month might be reasonable).
3. Is It a Bad Financial Decision to Keep an Older Condo?
Pros of Keeping It
✅ Stable living costs – If fees include utilities, your actual housing cost may be competitive.
✅ Larger, better-built space – Older condos often have thicker walls, fewer noise issues, and more storage.
✅ Potential for redevelopment – If the area is hot, a future buyout could pay off.
Cons of Keeping It
❌ Fees keep rising – Aging buildings need more repairs.
❌ Harder to sell later – Buyers may balk at $1,200+/month fees.
❌ Slower appreciation – Newer condos often rise faster in value.
When Should You Sell?
- If fees are rising faster than comparable buildings (check condo board reports).
- If major repairs are coming (special assessments could hit your equity).
- If you can reinvest in a better asset (e.g., a newer condo or townhouse).
4. Will Buyers Avoid a Condo With $1,000+ Maintenance Fees?
Yes, some will—but not all.
- First-time buyers may prefer lower fees (even if the unit is smaller).
- Investors may avoid it (high fees = lower rental profits).
- But… downsizers & long-term residents often prefer older buildings for:
- Larger layouts
- Better soundproofing
- Included utilities
How to Maximize Resale Value
✔ Highlight what’s included (e.g., “Fee covers heat, water, and building insurance”).
✔ Compare cost per sqft (e.g., $1.20/sqft is reasonable if utilities are included).
✔ Show recent upgrades (new windows, elevators, or lobby renos help).
5. The Smartest Move: Hold, Sell, or Wait?
✅ Hold If…
- You love living there and costs are manageable.
- The building is well-maintained with a strong reserve fund.
- The location is irreplaceable.
🚀 Sell If…
- Fees are rising unsustainably.
- You fear future special assessments.
- You can reinvest in a better-performing asset.
🔄 Compromise Strategy: Rent It Out
- If you can cash-flow the unit (rent covers mortgage + fees).
- If you believe in long-term location value.
Final Verdict
Older condos can still be great investments, but rising fees are a real risk. If your building is well-run and in a prime location, holding could pay off—especially if a future redevelopment offer comes. But if fees are spiraling and major repairs loom, selling sooner may be smarter.
Need a personalized analysis? As a Toronto real estate expert, I can help you evaluate your condo’s future and decide whether it’s time to sell or hold.
📩 Contact me today for a free assessment!
Richard Wang 