For many first-home buyers, finding a Sydney property below $1 million can feel like reaching an important milestone.
Eligible first-home buyers in NSW may receive a full transfer-duty exemption when purchasing a new or existing home valued at $800,000 or less. A concessional rate may apply to eligible purchases valued above $800,000 and below $1 million.
However, the government threshold is a tax-rule boundary—not an indication that a property will be affordable for every buyer.
The purchase price is only one part of the cost of buying and owning a home. Council rates, insurance, water, maintenance and strata levies can all affect how comfortably a buyer can manage their mortgage and everyday expenses.
This is particularly important for buyers considering apartments, townhouses and villas across Greater Sydney.
Why More Sydney Buyers Are Considering Strata Property
Sydney’s large gap between house and unit prices has made apartments an increasingly practical entry point for buyers who cannot stretch to a detached house.
In July 2025, Cotality reported a 75.7% difference between Sydney’s median house and unit values—the largest gap among Australia’s capital cities at the time.
Sydney property values were still rising toward the end of 2025, but growth was being restrained by affordability pressures. Cotality recorded a 0.5% increase in Sydney dwelling values during November 2025 and noted that affordability appeared to be limiting further growth.
For buyers, this creates a clear reality: strata properties may offer a lower purchase price than houses, but they come with financial responsibilities that should be understood before contracts are exchanged.
A Duty Concession Is Not an Ownership Budget
A first-home buyer may understandably focus on three figures:
* The deposit
* The purchase price
* The estimated mortgage repayment
Those numbers matter, but they do not show the complete cost of ownership.
A realistic property budget should also allow for:
* Conveyancing and legal costs
* Building, pest or strata reports
* Loan and settlement expenses
* Council and water rates
* Home or contents insurance
* Strata levies
* General maintenance
* Moving and essential setup costs
* A financial buffer for unexpected expenses
NSW Government guidance specifically recommends including both upfront and ongoing ownership costs when calculating how much a buyer can afford.
The question should therefore be more than, “Can I afford to buy this property?”
A better question is:
*“Can I comfortably afford to own this property after settlement?”*
Look Beyond the Quarterly Strata Levy
Strata levies help pay for the management and upkeep of a strata scheme.
They usually contribute to two main areas:
* An administrative fund for regular expenses, such as cleaning, gardens, minor maintenance and strata management.
* A capital works fund for major future expenses, such as replacing roofs, lifts, fencing or other common property.
Every NSW strata scheme must plan for major capital expenses through a 10-year capital works fund plan. NSW Government guidance warns buyers that unusually low levies may lead to steep increases or special levies if the scheme does not have enough money for major works.
This means a property with low quarterly levies is not automatically a better financial choice.
Low levies may reflect an efficient, well-maintained building. They may also mean that maintenance has been delayed or that the capital works fund is underfunded.
The numbers need context.
What Is a Special Levy?
A special levy is an additional amount owners may be required to pay when the owners corporation does not have enough money to cover a major expense.
It may be introduced for:
* Major building repairs
* Waterproofing work
* Roof replacement
* Lift repairs or replacement
* Fire-safety upgrades
* Structural problems
* Legal expenses
* Urgent common-property work
Special levies are approved at a general meeting and are generally divided between owners according to each lot’s unit entitlement.
Depending on the building and the work required, a special levy may create a significant unplanned expense for a new owner.
A buyer could therefore purchase an apartment within budget, receive a transfer-duty concession and still face substantial additional costs shortly after settlement.
Six Things to Check Before Buying a Strata Property
A professional strata search can help buyers understand how the building is managed and whether there are financial or maintenance concerns.
Before committing to a strata property, review the following areas.
1. The Capital Works Fund Balance
Check how much money the scheme currently holds for future major works.
A low balance is not always a problem, particularly in a small or relatively new building. However, it should be compared with the building’s age, condition and planned expenditure.
2. The 10-Year Capital Works Plan
Look at the repairs and replacements expected over the coming years.
Pay attention to expensive items such as:
* Roofing
* Lifts
* External painting
* Windows
* Balconies
* Waterproofing
* Fire-safety systems
* Driveways
* Fencing
Consider whether the current levy contributions appear sufficient to fund the planned work.
3. Recent Meeting Minutes
Read the minutes from recent annual general meetings and strata committee meetings.
Repeated discussions about water leaks, concrete cracking, insurance claims, legal disputes or postponed repairs may reveal issues that are not obvious during an inspection.
4. Existing or Proposed Special Levies
Check whether a special levy has already been approved, is being discussed or is likely to be required.
Your conveyancer or solicitor can help clarify whether the seller or buyer will be responsible for particular amounts under the contract.
5. Building Defects and Planned Work
Look for defect reports, engineering advice, waterproofing investigations and correspondence with builders or developers.
Do not assume that a modern building is automatically free from expensive problems.
6. Insurance and Legal Matters
Confirm that the scheme has appropriate insurance and check for current claims, disputes or legal proceedings.
NSW Government guidance states that a strata search report can reveal information about the scheme’s finances, insurance, defects, planned works, safety requirements, legal matters and meeting history.
Pay Attention to Changes in Strata Management
NSW introduced several stages of strata-law reform during 2025.
Changes beginning on 1 July 2025 strengthened protections relating to strata management, developer conduct, repairs and maintenance, contracts and committee responsibilities.
Further changes from 27 October 2025 increased accountability for building managers, introduced stronger disclosure requirements and expanded NSW Fair Trading’s investigation and enforcement powers.
These reforms provide greater protection and transparency, but buyers must still complete their own checks.
Legislative protections cannot replace careful review of a specific building’s finances, records and physical condition.
Build a Property-Specific Ownership Budget
Before making an offer, create a budget for the property rather than relying only on a general home-loan calculator.
Include:
* Estimated mortgage repayments
* Quarterly strata levies
* Council and water rates
* Insurance
* Routine maintenance
* Any known special levy
* A buffer for future levy increases
* A separate emergency reserve
It may also be helpful to calculate how the budget would cope with a higher interest rate, an insurance increase or an unexpected building expense.
This does not mean buyers should avoid strata property. It means the purchase should be assessed using the complete ownership cost rather than the advertised price alone.
The Bottom Line
A Sydney property priced below $1 million may provide an achievable path into home ownership, particularly for buyers considering apartments, villas or townhouses.
It may also allow an eligible first-home buyer to receive a valuable transfer-duty concession.
But a concession does not make every qualifying property affordable.
Before buying, look beyond the listing price. Review the building’s levies, financial records, capital works plan, meeting minutes, insurance, defects and proposed repairs.
The best property is not simply the one that fits below a government threshold. It is the one whose total cost can be managed comfortably after the keys are handed over.
Planning Your Next Property Purchase?
Before committing to a strata property in Greater Sydney, speak with the RnJ Realty team about the practical ownership considerations buyers often overlook.
We can help you understand the questions to raise, the property-management realities to consider and the ongoing costs that may affect your decision.
*Contact RnJ Realty today to discuss your next property step.*
This article provides general information only and does not constitute legal, financial or taxation advice. Buyers should obtain independent advice from a qualified conveyancer, solicitor, building professional, lender or financial adviser before purchasing property.
Information current to 31 December 2025.
