Buying a Strata Property? Here’s What You Need to Look Out For
Strata living can be attractive — modern apartments, shared facilities, and a sense of community. But buying into a strata scheme is very different from purchasing a freestanding house. You’re not just buying a unit — you’re buying into a community of owners with shared responsibilities and costs.
That means there are more moving parts, more risks, and more fine print.
Here are the key things you need to consider before signing a strata contract.
1. Strata Financials
The health of a strata scheme comes down to its finances. When reviewing strata records, always ask:
Does the owners corporation have enough funds in the administrative and capital works funds to cover upcoming repairs?
Are levies realistic? Very low levies may look appealing, but they often mean the scheme is underfunded.
Is there a history of arrears? If too many owners are behind in paying their levies, the scheme may struggle to meet its obligations.
A weak financial position can quickly translate into higher costs for you as the new owner.
2. Insurance Coverage
Strata buildings must be insured, but not all policies are created equal. Before buying, check:
Is the building adequately insured for replacement value?
Does the policy cover public liability?
Are common areas, lifts, pools, and gyms properly covered?
Inadequate insurance could mean that if something goes wrong, owners may need to dig into their own pockets to cover losses.
3. History of Special Levies
Special levies are one-off payments owners must contribute to when there’s not enough in the sinking fund to cover major expenses.
Red flags to watch for:
Frequent special levies — a sign the scheme is poorly managed.
Upcoming building works or defects that haven’t been budgeted for.
Large one-off levies (sometimes in the tens of thousands) that could catch you off guard.
Why Strata Purchases Are Complex
Buying into a strata scheme is not just about whether you love the apartment. It’s about understanding the hidden obligations and financial risks tied to that property.
Unlike a house, where you’re largely in control of your own property, in strata you’re bound by by-laws, dependent on the body corporate’s decisions, and financially tied to the rest of the owners.
That’s why getting proper legal advice is critical.
Final Thoughts
At Renee Roumanos Legal, we know the ins and outs of strata law. We carefully review strata reports, explain what the numbers mean, and make sure you understand the risks before you buy.
💡 Thinking about buying a strata property?
Don’t sign anything until you’ve had the contract and strata records reviewed.
📩 Contact us today for advice that protects you, your investment, and your future.
