buyer reached out wanting help to purchase a two-bedroom unit in Sydney’s inner city. The budget was realistic and there were plenty of options, but most units don’t make the cut.
In my experience, only a small number of properties pass the first test — the things I notice straight away when inspecting a block. Once a unit looks like it could be a solid option, that’s when I'll look into the property and the vendor further. And after that, I’ll assess the quality of the strata alongside everything else that needs to line up (more on that later).
When I talk about strata quality, I’m looking at three things:
The quality of the building itself
How it has been maintained
How the strata is managed
Many Sydney strata properties fall short in one or more of these areas. Poor construction, neglected maintenance causing serious problems, or committees that don’t plan well often lead to special levies and beyond. Part of my job is to unpack potential issues.
For this client, the goal was a property with long-term growth potential, good natural light, decent space, and a strata in solid shape.
About 90% of what I inspected didn’t make the shortlist. The usual issues showed up: buildings that were run-down, levies that were high without explanation, or strata reports that flagged problems ahead.
When I came across a unit that looked right (based on my experience of inspecting and vetting hundreds of units), it moved to the next stage. At that point, I started checking both the quality of the strata and whether the property stacked up more broadly.
That meant looking at:
The agent’s view on price and the vendor’s expectations
Recent sales in the building and local area
Planning and infrastructure changes that might affect value
These three checks are just the minimum to rule a property in or out early on. The rest of the due diligence happens as we go further.
Aside from assessing and vetting the property itself, I’m also looking for value-add potential. In this case, the unit needed cosmetic updates, which I saw as a positive. Kitchens, bathrooms, and finishes can all be improved if the strata rules allow, giving the buyer a chance to add value over time.
My client was ready to move and had flexible terms, which made us the best buyer to work with. That gave me room to negotiate with the agent and bring the price to a level I was comfortable with and was well within my price appraisal range.
The strata report gave me confidence. The building had a healthy capital works fund for its size and upcoming projects. Levies were a bit higher than average, but that was because the committee was putting money aside to avoid special levies — a sign of good forward planning.
The client now owns a two-bedroom unit with:
A strata in good financial and operational shape
Scope to add value through updates
A purchase price that makes sense both now and in the long run
Read the strata report in full – Go beyond the summary. Check for past issues, planned works, and whether the levies reflect the building’s needs.
Check the capital works fund in context – Don’t just look at the number. Compare it to the size of the building and what work is coming up.
Visit the building and common areas – The state of the foyer, lifts, gardens, and car park tells you a lot about the overall management.
Talk to local agents – In this case, several agents knew the building and described it as well run. While you should take opinions with a grain of salt, consistent feedback from multiple sources builds confidence.
Look at levy trends over time – Sudden jumps may point to poor past planning or major works on the horizon. Gradual increases usually reflect normal upkeep and proactive management.