Owning an Apartment: Frequently Asked Questions About the Costs
Apartments are a popular choice for first home buyers — they’re often more affordable, lower maintenance, and close to amenities.
That said, apartment ownership comes with its own set of costs that can look a little different to owning a house. Below are the most common questions buyers ask, answered clearly and honestly.
What are the main ongoing costs of owning an apartment?
The main ongoing costs usually include:
- Your mortgage repayments
- Strata (body corporate) fees
- Council rates
- Water charges
- Utilities like electricity and internet
- Contents insurance
These costs should all be factored into your budget before you buy.
What are strata fees and why do I have to pay them?
Strata fees cover the cost of maintaining and managing the building and shared areas.
They often include:
- Building insurance
- Cleaning and maintenance of common areas
- Lifts, gardens, pools, or gyms (if applicable)
- Management and administration costs
- Long-term maintenance savings (sinking fund)
Fees are usually paid quarterly and vary depending on the building’s size, age, and facilities.
Do apartment owners still pay council rates?
Yes.
Apartment owners still pay council rates, although they’re often lower than for houses. These are usually billed quarterly and contribute to local services and infrastructure.
How does insurance work for apartments?
In most apartment buildings, the strata covers the building insurance for the entire complex.
However, you’ll usually still need:
- Contents insurance for your belongings
- Optional landlord insurance if you rent the apartment out
While building insurance is included in strata fees, it’s still part of your overall cost.
Am I responsible for repairs inside my apartment?
Yes, generally.
Strata usually covers common property, but you’re responsible for maintenance and repairs inside your own apartment. This can include appliances, fixtures, flooring, and internal plumbing or electrical issues.
What are special levies?
Special levies are additional contributions owners may be asked to pay if the building needs major repairs that aren’t fully covered by the sinking fund.
These can be unexpected and, in some cases, significant. Reviewing strata reports before buying helps you understand the building’s financial position and reduce surprises later.
Are utility costs lower in apartments?
Often, but not always.
Apartments can be more energy-efficient than houses, but costs depend on the size of the apartment, the age of the building, and your usage. Electricity, gas (if applicable), and internet are still ongoing expenses.
Are there any one-off or move-in costs?
There can be.
Some buildings charge move-in or lift booking fees. You may also need furniture or storage solutions suited to apartment living. These are usually one-off costs but still worth planning for.
Do apartment costs increase over time?
They can.
Strata fees, rates, and insurance premiums may rise over time, and older buildings may require more maintenance. Thinking long-term helps ensure the apartment remains affordable.
Is owning an apartment still a good option for first home buyers?
For many buyers, yes.
Apartments can be a great entry point into the market — as long as you understand the full cost picture and budget accordingly.
Want Help Understanding What an Apartment Would Really Cost You?
If you’re considering an apartment and want to make sure the numbers stack up, a quick conversation can help you understand the true costs and what to look out for before you buy.
