My water heater is located in the house and is 10 years old. Should I consider purchasing a new one . I live in a townhouse community and others are replacing theirs as they are failing.

You could be proactive and remove the old water heater, but I think I have a better solution to your concerns...;)

Here, I strongly recommend that you consider installing a WATTS automatic water heater shut off system (see image). These cost about $200.00 (plus installation) and are a multi. use device that can be used now and reused down the line when the old heater actually goes due to leaking.

This device could get you another 2, 3, 4 or 5 plus years out of your water heater and that is great 'cause no one should replace a water heater unless it leaks, right?

Click on this for more info.:

Watts 149071 Floodsafe Water Detector Shutoff for Gas Water Heaters, Right Hand Thread - Amazon.com

Glad to discuss more...

Mark

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My water heater is located in the house and is 10 years old. Should I consider purchasing a new one

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I'm a great believer in, "if it ain't broke don't fixit". I just replaced my own heater. It came with the house when it was built 60 years ago.
If age is the reason you're thinking of replacing then think again. That old heater still might have a lotta years left. Replacing as working heater is a unnecessary expense. Good luck, Tom