If you’re new to the apartment market, chances are you’ve had to spend some time getting to understand strata levies.
But what are they and how do they compare with the costs associated with a free-standing house on a block of land?
Because there are multiple owners in an apartment complex, all owners contribute to costs such as insurance, the maintenance of facilities or common areas and communal water and electricity charges by paying a strata levy.
Money raised by the levies goes into two separate funds— the administrative fund, which pays the day-to-day expenses of the complex and the reserve fund, which pays for longerterm expenses such as painting or the repair of a lift.
Colliers International Senior Strata Manager Sofia Swensen urges new and would-be apartment owners to think about the big picture when comparing strata levies with the cost of maintaining a free standing home.