Buying an apartment in Sydney is one of the biggest financial decisions most people will make — and one that has become increasingly complex. Unlike purchasing a freestanding house, an apartment comes with another entire layer of ownership: strata. You’re not just buying the unit you live in; you’re also taking on shared responsibility for common property, finances, building health and future liabilities.

In 2025, with rising construction issues, tightening legislation, and ongoing media focus on building defects, it’s never been more important to know exactly what you’re buying into.

Whether you’re a first-home buyer, investor, downsizer or returning expat, this guide breaks down everything you must check before buying an apartment in Sydney — and why working with a buyer’s agent can make all the difference.

1. Start With the Strata Report (This Is Non-Negotiable)

A strata inspection report is your single most critical piece of due diligence. It gives detailed insight into:

  • The financial health of the scheme

  • Past and current maintenance

  • Building defects

  • Special levies (past, present or planned)

  • Insurance coverage

  • Disputes within the building

  • Meeting minutes and upcoming decisions

  • Whether the scheme is well-managed or chaotic

What to look for:

✔ A healthy Capital Works Fund

The Capital Works Fund (formerly the sinking fund) pays for major future repairs. Warning signs include:

  • Low balance relative to the size of the building

  • Frequent special levies

  • Delays in maintenance due to lack of funds

If the Capital Works Fund is inadequate, you may end up covering the shortfall in the form of special levies.

✔ No unresolved major building defects

Sydney has had well-publicised issues with cracked structures, flammable cladding, water penetration, and poor workmanship.
The strata report should clearly outline:

  • Whether defects exist

  • What has been done to fix them

  • Whether legal action is underway

  • Whether experts have been engaged

  • Whether costs will fall onto owners

Many buyers walk straight into six-figure repair liabilities because they didn’t review the report correctly. We can help you to decipher the report.

✔ No evidence of poor management

Look for red flags such as:

  • Delayed meetings

  • Lack of records

  • Poor communication

  • Repeated disputes

  • Unresolved safety issues

Strong strata management is a good proxy for a financially stable, well-maintained building.

2. Review Strata Levies (and Whether They’re Sustainable)

Strata levies vary widely across Sydney. High levies aren’t necessarily bad — and low levies can be a major red flag.

Low levies may mean:

  • Deferred maintenance

  • Upcoming special levies

  • No long-term planning

  • Basic facilities but poor upkeep

Higher levies often reflect:

  • Good maintenance

  • Adequate sinking fund planning

  • High-quality facilities (pool, lift, gym, concierge)

  • Proactive repairs that protect long-term value

The key is sustainability, not the dollar amount.

3. Inspect the Apartment Thoroughly (or Engage an Expert)

Even in a strata building, defects inside your apartment are your problem — not the Owners Corporation’s.

Essential checks include:

  • Water damage or mould

  • Rotten or swollen skirting boards

  • Window and door seals

  • Noise transmission

  • Ventilation

  • Cracks (fine vs structural)

  • Flooring condition

  • Drainage and waterproofing

Waterproofing defects are among the most expensive repairs and are one of the biggest risks in apartments built in the last 20 years.

A building and pest inspection for an apartment is different from a house — but still essential.

4. Understand the Bylaws Before You Buy

Bylaws vary widely and can significantly affect your lifestyle.

Common bylaws to review:

  • Pet ownership — some buildings have requirements

  • Short-term letting (Airbnb) — can affect noise, safety and resale

  • Renovation approvals — what you can and cannot alter

  • Smoking bylaws — many buildings now restrict smoking on balconies

  • Parking allocation — visitor parking, car stackers, tandem spaces

  • Noise rules

  • Common area usage

  • Move-in and move-out costs

Bylaws tell you what living in the building will actually be like.

5. Check the Age of the Building (and What Era It Belongs To)

Different eras of Sydney apartments come with different risk profiles.

Pre-1970s (Older, Solid Buildings)

  • Pros: thick walls, large rooms, solid construction

  • Cons: older plumbing/electrics, no lifts, can require major updates

1970s–1990s

  • Pros: reliable construction, good layouts

  • Cons: aging lifts, concrete cancer in some buildings

Early 2000s Boom

  • Pros: modern design, good amenities

  • Cons: height of defect-prone era in Sydney construction

2010s–2020s High-Rise Era

  • Pros: premium features, strong investor demand

  • Cons: serious risk of building defects, flammable cladding, waterproofing failures

Understanding the building era helps you predict long-term maintenance and risk.

6. Check For Flammable Cladding (A Critical 2026 Issue)

NSW continues to phase out flammable cladding, but hundreds of buildings are still affected.
If the building is on the NSW Cladding Register or under remediation, you need to understand:

  • Costs

  • Timelines

  • Legal actions

  • Who is paying

  • Whether insurance premiums have increased

Ignoring cladding issues can be financially devastating.

7. Assess the Surrounding Area (Now and Into the Future)

Even the best apartment loses value if the area is declining — or if future development will block your sunlight or views.

Check:

  • Rezoning plans

  • Nearby major developments

  • Planned infrastructure

  • Traffic changes

  • Transport links

  • Noise corridors

  • Flood zones

  • Heritage restrictions

Sydney suburbs can change dramatically in less than five years. Future-proofing matters.

8. Consider Parking, Storage and Accessibility

These features can significantly impact resale value.

Parking checks:

  • Is the parking on title?

  • Is it exclusive use or common property?

  • Is it a car stacker (which many lenders dislike)?

  • Is it tandem?

  • How secure is it?

  • Are there visitor spaces?

Storage checks:

  • Is there a lock-up cage?

  • Is storage on title or allocated?

  • Is it secure and usable?

Accessibility:

  • How many lifts?

  • What happens if one breaks?

  • Are stairs unavoidable?

Small details can make a big difference to everyday living.

9. Review Insurance and Compliance

The building must have appropriate insurance:

  • Public liability

  • Building replacement

  • Workers’ compensation

  • Strata building insurance

The strata report should show any issues such as:

  • Insurance claims

  • Premium increases

  • Flood or storm damage history

  • Asbestos records

Insurance issues often indicate deeper building problems.

10. Check the Developer, Builder and Building Manager Reputation

A quick search of the developer or builder can reveal:

  • Class actions

  • Defects in other buildings

  • History of poor workmanship

  • Liquidations

  • Media reports

Sydney has several builders with repeated defect issues — and many buyers never check.

11. Look Closely at the Financials

A thriving strata shows:

  • Predictable levies

  • Strong cash flow

  • No major arrears

  • Well-managed budgets

  • Consistent upkeep

A struggling strata shows:

  • Unpaid levies (owners in financial distress)

  • Large debts

  • Chaotic records

  • Disputes over money

  • Special levies every few years

Financial instability can dramatically reduce your resale value.

12. Understand Rental Demand (If You're an Investor)

Investors should check:

  • Vacancy rates

  • Rental yields

  • Demand for the building type

  • Demographics

  • Owner-occupier percentage

  • Local infrastructure influencing rents

In 2026, tenant preferences have shifted towards:

  • Good natural light

  • Separate work-from-home spaces

  • Proximity to transport

  • Quality of soundproofing

Not all apartments perform equally — even in the same suburb.

Why Buyers Should Never Skip Professional Due Diligence

Sydney apartments come with unique risks, and even experienced purchasers often overlook crucial details.
A buyer’s agent:

  • Analyses strata reports deeply

  • Identifies red flags most buyers miss

  • Advises on building and developer risk

  • Provides accurate price appraisals

  • Prevents you from overpaying

  • Assesses long-term growth and suitability

  • Negotiates with the selling agent strategically

  • Helps avoid emotionally driven decisions

Buying the wrong apartment is easy. Fixing a mistake can be expensive — or impossible.

Final Thoughts: Protect Yourself Before You Buy

Buying an apartment in Sydney isn’t just about choosing a home you love.
It’s about understanding:

  • The building

  • The finances

  • The risks

  • The future maintenance

  • The legal obligations

  • The market value

  • The long-term viability

With the right due diligence, a Sydney apartment can be an excellent investment and a wonderful place to live — but only if you know exactly what you are buying. Contact us if you need help to decide!