Buying an apartment, unit or townhouse in Sydney is often more complex than buying a house. Why? Because it’s not just about the property itself—it’s also about understanding the risks and responsibilities tied to the strata scheme.

What is Strata?

In New South Wales, strata refers to a system of property ownership where you own your individual unit, but also share ownership and responsibility for common areas—such as hallways, gardens, roofs, and lifts—with other owners in the building. These shared areas are managed by the Owners Corporation, which all owners contribute to through strata levies.

No two strata schemes are the same, and there’s no such thing as a ‘perfect’ strata. But you can—and should—take steps to understand the financial and legal implications of buying into a particular building.

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Why Strata Matters

In my experience, around 50% of apartments that seem ideal at first glance are ruled out after reviewing the Strata Report. That report often reveals critical issues that impact your future costs, legal exposure, or resale value.

Everyone has a different risk tolerance, so it’s important that you feel informed and empowered before making a decision.

If you’re using a Buyer’s Agent, it’s crucial they have deep expertise in reviewing and interpreting strata documents. Unfortunately, many don’t. Most shy away from strata altogether because they find the documentation complex or unfamiliar.

What a Great Strata Buyer’s Agent Will Do

A truly experienced Buyer’s Agent will:

• Carefully read every page of the Strata Report for each property

• Identify any missing documents or reports, and follow up to obtain them

• Flag any issues that may impact your loan approval (e.g. combustible cladding)

• Advise you on concerns that are unexpected for a building of that age or size

• Clearly explain the risks and financial implications

• Answer any questions you have about the strata

• Use the report’s findings to help you negotiate a lower purchase price

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My eBook, "Navigating Strata Reports with Confidence," is the guide every apartment buyer should read. It walks you through real examples, key red flags, and how to avoid costly surprises.
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What Happens After Reviewing the Strata Report?

Typically, one of three outcomes follows:

• ✅ We move forward—nothing concerning was found

• ⚖️ We move forward—but adjust our fair price due to moderate risk or cost

• ❌ We walk away—issues identified fall outside our risk tolerance

Strata Affects Value—Always

If a unit is priced lower than similar apartments nearby, it's often not a bargain—it’s a red flag. The cause is usually found in the strata records: major planned repairs, ongoing legal action, or high special levies.

That’s why it's critical to read the current Strata Report before comparing property prices.