Strata levies before you buy: the ownership costs apartment buyers should check
Apartment ownership is about more than the purchase price and mortgage repayment. Before making an offer, buyers should understand how strata levies support the building, what those levies cover and whether larger costs may be approaching.
What strata levies usually fund
Regular levies generally contribute to the scheme's administration and capital works funds. They may help pay for common-property cleaning, gardening, building insurance, repairs, maintenance and longer-term replacement projects. The amount can vary according to the building's age, facilities, lot entitlements and maintenance requirements.
Checks to make before you offer
Ask for the current levy amount and payment schedule, then compare it with the building's budget and recent financial statements. Check whether the capital works fund appears adequate for the building's age and condition. Review meeting minutes for discussion of water damage, concrete repairs, lifts, roofing, fire safety, defects or special levies.
Also look beyond the quarterly figure. A building with a pool, lifts, basement parking or extensive landscaping may have higher recurring costs. Lower levies are not automatically better if they reflect deferred maintenance or underfunded future works.
Questions for your inspection and conveyancer
- Are any special levies proposed, unpaid or recently raised?
- What major works, defects or insurance matters are being discussed?
- Do the by-laws and common-property responsibilities suit your plans?
These checks do not replace independent legal, building or financial advice. They help you compare the likely ownership picture more carefully before committing to a property.