Buying into a strata property can be an appealing option for many Australians, offering convenience, community, and access to great amenities. But before taking that step, it’s important to understand what strata ownership means and how strata fees may affect your overall affordability.
What is strata ownership?
A strata property is one where individuals own a specific portion, such as an apartment, townhouse, or villa, while sharing ownership of common spaces with other residents. These shared areas can include gardens, lifts, driveways, stairwells, and other communal spaces.
All lots within the same building or development form what’s called a strata scheme. A strata scheme is the legal framework that outlines how the property is divided, managed, and maintained. It brings together all individual lot owners under one collective ownership structure.
When you purchase a strata property, you become part of an owners corporation, which is responsible for maintaining and managing these shared areas.
This setup allows multiple owners to collectively take care of the property, ensuring that everyone contributes fairly to its maintenance.
What are strata fees?
Strata fees, also known as levies, are the regular contributions each owner makes to cover the costs of managing and maintaining the property. These fees are usually collected quarterly or twice a year, and they ensure that essential repairs, maintenance, and shared services are consistently funded.
In most strata schemes, fees are divided into three main categories:
- Administrative fund levies – Cover everyday expenses like cleaning, gardening, building insurance, and utilities for common areas.
- Capital works fund levies – Used for major repairs and improvements such as roof work, repainting, or replacing shared facilities.
- Special levies – Raised for unexpected costs or when additional funds are needed beyond what has been collected.
How much are strata fees?
Strata fees vary depending on several factors, such as the size of the building, the type of facilities it offers, and the level of service required. A complex with pools, gyms, or lifts will generally have higher fees than one with fewer shared amenities.
Larger buildings can sometimes distribute costs more evenly among owners, while smaller complexes may have higher individual contributions. The location, age, and condition of the building can also influence how much you pay.
Strata ownership vs standalone homes
When you buy a standalone home, you take full responsibility for everything on the property-both inside and out. This includes all repairs, maintenance, and insurance.
In a strata property, however, you own your specific lot but share responsibility for the external and communal areas with other owners. The owners corporation handles maintenance and decisions related to these shared spaces, meaning you won’t have to manage them yourself.
Why strata fees can be worth it
While strata fees are an extra cost to consider, they also come with practical benefits:
- Low-maintenance lifestyle
Routine tasks like landscaping, rubbish collection and cleaning shared areas are managed for you, freeing up your time. - Access to amenities
Many strata properties include shared facilities like pools, gyms or gardens that would be costly to maintain in a standalone home. - Shared costs and responsibilities
The fees you pay are pooled together, allowing large expenses to be spread across multiple owners, which can make upkeep more manageable. - Potentially lower entry costs
Strata properties can be more affordable than standalone homes in the same area, offering an accessible entry point for buyers.
Strata living is not always more affordable, but it provides a balance between convenience, shared responsibility and access to amenities that enhance your lifestyle without the same level of maintenance.
In addition, well-managed strata schemes often help maintain or even increase property value over time. Regular maintenance, shared upkeep, and consistent management standards can make strata-titled properties more appealing to buyers and renters alike. This means that paying strata fees is not just about maintenance, it can also be a way to protect and grow your investment in the long run.
Planning your next move
When buying a strata property, it is important to include strata fees in your budget. These regular payments are part of your long-term ownership costs, just like insurance, rates, or utilities.
Before you commit, take some time to review the financial records of the owners corporation. This will help you understand how funds are managed, what the current fees cover, and whether there are any major repairs or upgrades planned. Knowing these details early can help you avoid unexpected costs and make a confident, well-informed decision.
Ready to take the next step?
Strata living offers convenience, community and lasting value, but understanding the financial details from the start is essential.
Whether you are upsizing, downsizing, or simply looking for a new place to call home, we are here to simplify your next move.
Find out how we can help with your journey. Contact Manage Your Loans today, and let’s turn your mortgage into a tool that works for you-not against you.