I’m looking at spending 100k to bring a property up to fire code, and possibly rebuilding the floor. Until that happens, I won’t be able to move in. So, yes, buildings do become obsolete at the whim of some other entity.
Usually (at least where I live) properties that were at code in maintain that status through "grandfathering" even if the code changes.
We have an old elevator in my building. It gets inspected year to year. If replaced it has to be up to code. A new up to code elevator, won't physically fit in the space the old one is). We're also in a "historic" district which is another entity of denial.
You are right that upgrades can become a nightmare of codes/regulations.
At least in the US these entities are controlled by a government we in theory elect so its at least partially our fault. Also at least in the US, when the government "takes" or changes a rule that destroys value, there is always the threat of a lawsuit for the value destroyed.
Good point, but at least with a government, if you pay taxes there's usually at least some recourse and a potential to get things changed. With a private company, you're almost always told to go pound sand.
