What is strata and how much does strata cost?

When you buy a unit or townhouse with shared walls/grounds, you own your unit + a share of the 'common property' (lifts, pool, gardens, gym, building structure). Strata management runs that common property, levies owners quarterly to fund it, and enforces by-laws.

Typical strata levy ranges: low-amenity walk-up apartment $1,500-$3,500/year, mid-amenity (lift + secured parking) $3,500-$6,000/year, high-amenity (pool + gym + concierge) $6,000-$15,000+/year. Levies are split into administrative fund (running costs) + sinking fund (long-term maintenance reserve).

Special levies are the surprise risk: when major work needed (façade re-render, lift replacement, waterproofing) and the sinking fund's short, owners get hit with one-off levies of $5K-$50K+. Always check the strata report for sinking fund balance, recent special levies, planned major works before buying.

From an investment perspective: strata + management + rates eat 1-2 percentage points off gross yield in apartments. Houses don't have strata; they have higher land tax but lower running costs. Different return profile, different tenant pool.