If you're thinking about buying an apartment, unit, or townhouse in Australia, you'll need to get your head around strata levies. But what exactly are they, and what do they cover?

Here's our simple guide to understanding strata levies.

What are Strata Levies?

Strata levies (also known as body corporate fees) are regular payments made by owners in a strata scheme. These payments go into a central fund that is used to pay for the running and maintenance of the building's common property.

What Do Strata Levies Cover?

Strata levies cover a wide range of expenses, including:

• Maintenance and repairs of common areas, such as lifts, stairwells, and gardens.
• Building insurance.
• Cleaning and gardening services.
• Electricity and water for common areas.
• Upkeep of shared amenities, such as swimming pools and gyms.

How Are Strata Levies Calculated?

Strata levies are usually determined at the Annual General Meeting (AGM) of the owners' corporation. The amount you pay will depend on the size of your property and the amenities in the building. A large apartment in a building with a pool and a gym will have higher strata levies than a small apartment in a building with no amenities.

What Happens if You Don't Pay?

If you don't pay your strata levies, the owners' corporation can take legal action against you to recover the debt. You may also be charged interest on the overdue amount.

Tips for Buyers

• Review the Strata Report: Before you buy, it's essential to get a copy of the strata report. This will give you a detailed history of the building, including any major works that are planned.
• Factor Strata Levies into Your Budget: Make sure you can comfortably afford the strata levies on top of your mortgage repayments.
• Be Aware of Special Levies: From time to time, the owners' corporation may need to raise a special levy to pay for a major expense, such as a new roof. Make sure you have room in your budget for this.

Let Us Help You Navigate the World of Strata

Strata schemes can be complex, but they don't have to be a deal-breaker. An experienced buyer's agent can help you understand the ins and outs of strata living and find a property that's right for you.

Contact RICO Buyers Agent today for expert advice on buying a strata property.