A guide to strata fees: what you need to know

If you're buying a townhouse, apartment, or any property in a strata scheme, the strata levies are a recurring cost you'll pay for as long as you own the property. They're often opaque to new buyers and can hide problems that show up years later. Here's how to read them properly before you commit.

What strata levies actually fund

A strata scheme is a legal entity that owns and maintains the common property — the building structure, common areas, gardens, lifts, pool, services. Owners are members of the scheme and pay levies to fund:

• Administrative fund. Day-to-day operating expenses — insurance, garden maintenance, cleaning, electricity for common areas, management fees.
• Capital works fund (sinking fund). Long-term, lumpy expenses — roof replacement, repainting, lift overhauls, major repairs.
• Special levies. One-off contributions when the regular funds can't cover an unexpected or major expense.

What a healthy levy looks like

There's no universal "right" levy figure — it depends on building age, amenities, size, and condition. As a rough guide:

• Older, no-amenity buildings: $500–$1,500 per quarter is typical.
• Mid-range, pool/gym/lift: $1,000–$2,500 per quarter.
• High-amenity or premium buildings: $2,500–$5,000+ per quarter, especially with concierge, large lobbies, extensive landscaping.

What matters more than the absolute number is whether the funds are sized correctly for the building's needs.

The capital works fund is the real signal

This is the single most important number when buying into strata. The capital works fund pays for big, predictable future expenses. If it's underfunded relative to the building's age and condition, special levies are coming — and they can run into tens of thousands per owner.

Ask for:

• The current balance of the capital works fund.
• The 10-year capital works plan (legally required in most states).
• The actual capital works spend over the last five years.
• Whether any special levies have been raised in the last three years.

A building with a $50k capital works fund and a roof due in two years is a future special-levy ticket.

The strata report

For any strata purchase, get a professional strata report (cost: $300–$500). It surfaces:

• Outstanding levies or arrears across the scheme.
• Disputes, court actions, defects.
• Quality of building maintenance.
• Meeting minutes that often reveal underlying issues.
• Insurance coverage adequacy.

This is one of the highest-return inspections you'll commission. Don't skip it.

Levies and your borrowing capacity

Lenders include strata levies as a fixed expense when calculating your borrowing capacity. A property with $1,200/quarter levies has roughly $4,800/year of fixed cost that reduces what you can borrow. On a marginal application, this can shift outcomes.

If you're comparing two properties — one with low levies and one with high — the difference compounds significantly over a long ownership.

The other questions to ask

• Are there any current defects under warranty?
• Has the building had any cladding or fire safety remediation?
• What's the by-laws position on pets, short-stay letting, renovations?
• Is the strata professionally managed or self-managed?

Strata properties can be excellent investments and excellent homes. The work is doing the homework before signing — not after.