Apartment strata costs: what buyers should check before making an offer

An apartment can look affordable at the inspection stage, but strata levies and future building work can materially change the cost of ownership. Buyers should treat the strata records as part of the property research, not as paperwork to review after deciding.

This article is general information only and is not legal, financial, building or investment advice. Ask an appropriately qualified professional to explain documents and risks for the specific property.

Understand what the levies cover

Ask for the current strata levy schedule and identify what is paid from the administrative fund and what is planned through the capital works or sinking-fund plan. Levies may contribute to shared insurance, cleaning, gardening, lifts, lighting, repairs and other common-property services. Compare the amount with the building's age, facilities and maintenance needs rather than treating a low levy as automatically better.

Read the records before making an offer

Recent meeting minutes, notices and financial statements can show whether owners are discussing defects, water ingress, lift replacement, fire-safety work, insurance issues or a proposed special levy. Ask whether major projects are funded, underway or still being considered. A building that looks tidy during an inspection may still have significant work ahead.

Include the full ownership budget

Strata charges sit alongside loan repayments, council rates, utilities, contents insurance, repairs inside the lot and transaction costs. Allow for changes over time and keep a buffer for unexpected contributions. If the apartment has parking, storage, lifts, pools or other shared facilities, understand how those features affect maintenance responsibilities and levies.

A practical apartment buyer checklist

• Obtain the levy schedule, financial statements and recent meeting minutes.
• Check the capital works or sinking-fund plan and proposed major repairs.
• Ask about special levies, building defects, insurance and unresolved disputes.
• Compare strata costs with the building's age, facilities and maintenance profile.
• Have the contract and strata records reviewed by a qualified professional before signing.

Sources

• Buying and selling property: NSW Government
• Strata: NSW Government
• Home loans: Moneysmart