In this guide 7 sections
Buying a unit means buying your own lot plus a share of the building. Before you buy, check the strata records: levies, funds, insurance, defects and by-laws. Here is what to check, the documents you get in each state, and how units compare with houses for investors.
- You own your lot and share the common property.
- Check the levies, funds and maintenance plan, not just the price.
- Low levies can mean special levies later.
- Lenders can be stricter on very small units.
What are you buying when you buy a unit?
Most units, apartments and townhouses are strata title. You own your lot, usually the inside of the unit, and you share ownership of the common property, such as the roof, external walls, driveways, gardens and lifts, with the other owners.
Every owner automatically belongs to the owners corporation (Victoria and NSW), body corporate (Queensland) or strata company (WA). It looks after the common property and charges levies to pay for it. Your lot entitlement sets your share of the costs and your vote.
What do strata levies pay for?
Day to day costs: insurance, cleaning, gardens, management fees.
Major work such as roofs, lifts and fencing. NSW schemes must have a 10 year capital works plan.
Extra charges when the funds cannot cover big or unexpected costs.
What should you check before buying a unit?
- The strata, owners corporation or body corporate certificate: levies, arrears, insurance, funds held and any legal proceedings.
- AGM minutes and financial statements. Look for disputes, defects and planned works.
- The maintenance or capital works plan, and whether the fund can pay for it.
- Building insurance: is the building insured for full replacement?
- Defects and cladding. Ask the owners corporation about defect claims and whether the building has combustible cladding or is in the Cladding Safety Victoria program.
- By-laws or rules on pets, parking, renovations and short stay letting, which affect tenant appeal.
- Whether the car space is on your title or leased.
- An independent building inspection. Standard inspections usually exclude common areas.
What documents do you get in each state?
Unit or house: what is the difference for investors?
A lower entry price and, nationally, a higher gross rental yield (4.4% for units against 3.3% for houses, Cotality, March 2026). You pay levies, share decisions and own less land.
You own the land and make your own decisions, but you pay all the maintenance yourself and the entry price is usually higher.
Yields and vacancy figures change over time and differ by city and suburb. Compare the specific property, not the averages.
Townhouse, small block or high rise?
Smaller blocks usually have fewer shared facilities and lower levies. Large towers often have lifts, pools and gyms that cost more to run. In Victoria, owners corporations with more than 50 lots must have a maintenance plan and fund, while smaller ones can choose.
Many lenders also have tighter rules for very small apartments, studios, serviced apartments and student accommodation. Check with a licensed broker before you sign.
What makes a unit rent well?
- Close to transport, shops, schools and work.
- A second bathroom, parking and storage.
- Good natural light and outdoor space.
- A well run building with reasonable levies.
- By-laws that suit tenants, such as allowing pets.
Work out rental yield → · Our due diligence checklist →
- NSW Government: buying a strata property
- NSW Government: strata levies, finances and insurance
- Consumer Affairs Victoria: buying an apartment or unit checklist
- Consumer Affairs Victoria: tiers of owners corporations
- Owners Corporations Act 2006 (Vic) section 151
- Queensland Government: buying into a body corporate
- Landgate WA: resources for strata buyers
- Victorian Government: buying an apartment with combustible cladding
- Cotality: Quarterly Rental Review Q1 2026
- Moneysmart: buying an investment property
General information only. It does not take your objectives, financial situation or needs into account and is not financial, tax, credit or legal advice. Citadel Agency is a licensed buyers agency (licence 092247L) and does not hold an Australian Financial Services Licence.