The Strata Squeeze: How Ageing Buildings Are Hitting Apartment Owners with Massive Repair Bills
In Australia, the dream of apartment living is increasingly turning into a financial nightmare for many owners, as ageing buildings demand costly repairs. A recent case highlighted by Stefanie Iannelli, a Sydney resident, underscores the growing crisis. Her North Strathfield apartment complex, with over 120 units, faced a major waterproofing bill—a common issue for buildings around the 25-year mark. The problem: the owners’ corporation had no funds in its maintenance reserve, leaving residents to confront a sudden, hefty levy.
Under NSW strata rules, an owners corporation can borrow money if an ordinary majority approves a resolution at a general meeting. This means that even if some owners object, they can be bound to repay the loan. For Stefanie, this situation raises larger questions about how apartment buildings prepare for major repairs. She believes that meeting records and information about planned maintenance can help prospective buyers identify whether major costs are looming. But as her case shows, many buildings are caught off guard, with no financial buffer for inevitable repairs.
This story is part of nine.com.au’s Strata Squeeze series, which aims to raise awareness of apartment owner rights and what to know before buying a unit. The series highlights that delayed maintenance—especially waterproofing—can escalate into expenses far beyond regular strata fees or mortgage payments. With older apartment blocks across Australia increasingly facing such bills, experts urge buyers to scrutinize building health and financial reserves before purchasing.
As rules around strata borrowing evolve, the message is clear: proactive maintenance and transparent financial planning are essential. For current owners, the burden can be overwhelming, but for future buyers, due diligence is key. Understanding the risks of ageing buildings and the potential for special levies is crucial in navigating Australia’s apartment market.
Shimanta Das 
