Still building a portfolio while living in Dubai.
What is strata title in Australia?
Strata title is ownership of a lot, such as a unit, plus a share in common property with other owners. Common property means the shared parts of the scheme. An owners corporation or body corporate is the group of owners that manages it. Levies are owners' payments towards its costs. Scheme rules can affect how you use your home.
Updated
Which parts of a strata property belong to an individual owner?
The title and plan define the lot being bought. The shared parts can include roofs, stairs, gardens and external walls. They belong to the owners as a group. Boundaries matter. Looking at a balcony or parking space does not prove who owns it or who has to pay for repairs.
NSW guidance explains that the sale contract includes the strata plan. Its examples show why the lot and shared areas both need to be understood. Other states have their own laws and names. Body corporate and owners corporation name the group of owners, not the title itself. A strata manager is someone hired to help that group run the scheme.
What do regular levies and special levies pay for?
Levies are payments from owners for scheme bills and planned work. In NSW, the administrative fund covers day-to-day costs such as shared power, insurance and management. The capital works fund holds money for larger jobs, like replacing roofs or lifts. These funds cover the shared building. They do not repay an individual owner's mortgage.
A special levy is an extra payment for costs the current funds cannot meet. A low regular payment does not prove a building is cheap to maintain. The budget, funds held and known work explain more than the levy notice alone. NSW schemes have a ten-year plan for capital works. Each state's rules set how funds are raised and what each owner owes.
What can a strata report reveal that a unit inspection cannot?
The strata report checks the scheme's records. A building inspection checks physical condition within the booked scope. Records can reveal decisions at meetings, planned work, financial statements and disputes. New paint inside a unit says little about money held for the building. It also cannot show whether a shared roof issue has been resolved.
By-laws are the scheme's rules for owners and residents. They may cover parking, changes inside a lot and use of common areas. They have to fit the relevant law. NSW guidance recommends reading them and getting reports before buying. Those records answer different questions from a physical check. The strata report cannot replace an inspection of building condition.
Illustrative example5 steps
Adding an extra building contribution to regular strata costs
- An invented lot has four quarterly levy payments of $1,100 each.
- Its regular contributions for the year total 4 multiplied by $1,100 = $4,400.
- The scheme also raises a hypothetical special levy of $3,600 for that lot.
- Total contributions in this example: $4,400 plus $3,600 = $8,000.
- The extra levy is part of that year's cash requirement; it does not establish the amount due in later years.
For investors
Shared ownership puts the whole building's finances in the picture.
Strata bills sit beside costs inside an investor's own unit. Scheme rules and shared repairs can also affect its use. The property manager handles the rental tenancy, while the strata manager works for the scheme. Understanding the roles helps explain who has the relevant records. It also helps show which person deals with a bill or shared building fault.
Common questions
Questions about strata title
Keep learning
Property is a complex world.
Strata title is one piece of it. Owning brings tenants, managers, insurance and upkeep into the plan. Next, read about conveyancing, building and pest inspection and due diligence.
Success stories
Owning and building from a distance.
If you want help
How to choose a buyer's agency.
Four questions to ask any agency, with our answers.
Who pays you?
You do. Never a developer or the selling agent, who works for the vendor.
What is your track record?
Founded in 2018 by Arjun Paliwal, with 3,100+ completed purchases and 850+ five-star Google reviews. REB Buyer's Agency of the Year, winner 2023, 2024 and 2026.
How do you choose a property?
A QPIA-qualified strategist sets the plan. Every shortlisted property passes our 20-point due diligence.
What happens after settlement?
Portfolio reviews, and a Portfolio Wealth Blueprint for what comes next.