Buying a strata-titled property can be an exciting first step—whether you’re investing or looking for a home. But purchasing into a strata scheme is very different from buying a standalone house. Understanding these differences upfront will help you avoid surprises and unexpected costs down the track.

How Strata Schemes Work

When you buy into a strata property, you’re purchasing not just your apartment or lot, but also a share in the common property. This includes hallways, gardens, gyms, pools, lifts, and other shared spaces.

All owners automatically become members of the owners corporation, which is responsible for managing these common areas. Decisions are made collectively—either through general meetings or by the strata committee. No single owner can act alone when it comes to changing common property.

Levies and Special Levies

To fund the maintenance and repairs of common property, all owners pay strata levies, usually every quarter. These are mandatory, not optional.

If unexpected repairs arise and the regular funds are insufficient, the owners corporation may raise a special levy. This means all owners are required to contribute additional funds, which can sometimes be significant.

Understanding the financial health of the strata scheme is crucial before buying, so you know what you may be up for.

Reports You Should Always Get

At Metro Strata, we recommend two key reports before committing to a purchase:

1. Strata Records Report
   This provides insight into the financial position of the owners corporation and the building’s management history. It will show:
   • The levies you’ll need to pay (regular and special)
   • Any history of building or structural problems
   • Whether the scheme has adequate funds set aside
   • Whether the building is properly insured
   • The state of harmony (or disharmony) among owners
   • The by-laws that govern renovations, pets, or refurbishments
2. Building Inspection Report
   According to NSW Fair Trading, this report details the property’s physical condition, highlighting issues like rising damp, cracking walls, faulty roofing, or safety hazards. It’s normally carried out before contracts are exchanged, giving you a chance to identify expensive problems before it’s too late.

Do Your Own Checks Too

In addition to formal reports, visit the property multiple times before purchase. Attend more than one open home to get a feel for the building, common areas, and the overall community environment.

Pay attention to the condition of common property—because if it looks neglected, you’ll likely be contributing to its upkeep soon.

Why This Matters

Buying into strata means becoming part of a community. You share financial responsibilities and decision-making with other owners. Going in with a clear understanding of how levies, by-laws, and building health work will make ownership much smoother.

Final Word

Strata ownership has many advantages, but it pays to do your homework before signing. With the right preparation, you’ll be able to enjoy the benefits of shared facilities without the shock of unexpected costs.