What Are the Real Costs of Owning an Apartment?

June 18, 2025

What Are the Real Costs of Owning an Apartment?

Apartments can be a great first step into the property market. They’re often more affordable than houses, closer to amenities, and easier to maintain.

But owning an apartment comes with a slightly different set of costs that first home buyers don’t always expect. Understanding these upfront can help you budget properly and avoid surprises later.

Your Mortgage Repayments

Just like any property purchase, your home loan repayment is usually the biggest ongoing cost.

This will depend on how much you borrow, your interest rate, and your repayment structure. While apartments can mean a smaller loan than a house, repayments still need to comfortably fit your overall budget.

Strata (Body Corporate) Fees

This is one of the biggest differences between owning an apartment and owning a house.

Strata fees cover the cost of maintaining and running the building and shared areas. This can include:

Building insurance
Cleaning and maintenance of common areas
Lifts, gardens, pools, or gyms (if applicable)
Management and administration costs
Long-term maintenance funds (sinking fund)

Strata fees are usually paid quarterly and can vary significantly depending on the building, age, and facilities.

Council Rates and Water Charges

Apartment owners are still responsible for council rates, although they’re often lower than for houses.

Water charges may be billed separately or included partly through strata, depending on the building and location. It’s important to check how these costs are structured before buying.

Insurance Costs

In most apartment buildings, the strata covers building insurance for the entire complex.

However, you’ll usually still need:

Contents insurance for your belongings
Optional landlord insurance if you ever rent the apartment out

While building insurance is often included in strata fees, it’s still a cost you’re indirectly paying for.

Maintenance and Repairs Inside Your Apartment

Strata usually covers common property — but not everything.

You’re generally responsible for maintenance and repairs inside your apartment, such as:

Appliances
Flooring
Plumbing and electrical issues within your lot
Cosmetic updates

Setting aside a small maintenance buffer can make these costs easier to manage.

Utilities and Ongoing Living Costs

You’ll still have regular bills like:

Electricity
Gas (if applicable)
Internet

Apartments are often more energy-efficient than houses, but costs can vary depending on building age, size, and usage.

Special Levies (The One People Forget)

This is an important one to be aware of.

If a building needs major repairs that aren’t fully covered by the sinking fund, the owners corporation may raise a special levy.

This means apartment owners are asked to contribute extra money — sometimes thousands of dollars — toward unexpected works. Reviewing strata records before buying helps reduce this risk.

Moving and Setup Costs

Moving into an apartment can come with additional costs, such as:

Booking lifts for move-in
Move-in fees (in some buildings)
Furniture suited to apartment living

These are usually one-off costs, but still worth factoring into your budget.

Long-Term Considerations

Owning an apartment isn’t just about today’s costs.

Strata fees can increase over time, buildings age, and maintenance needs change. Thinking long-term helps ensure the apartment remains affordable and comfortable for you.

Is an Apartment Still a Good Option?

For many first home buyers, apartments are a smart and practical choice — as long as you understand the full cost picture.

When you factor in strata fees, rates, insurance, and maintenance alongside your mortgage, you can make a confident decision that suits your lifestyle and budget.