How to Compare Apartments Before You Buy (What Most Buyers Miss)

When you are looking to purchase an apartment, it is easy to get caught up in:

• the layout

• the natural light

• the balcony

• the location

But here is the reality…

Two apartments can look almost identical

But be completely different investments

The difference usually comes down to what is behind the scenes – particularly the strata report and building condition.

Step 1: Do not Compare Just the Apartment – Compare the Building

Most buyers make this mistake:

I like this unit more, so I will just pay more for it.

But what you should be asking is:

• What is the building like financially?

• Are there any ongoing issues?

• Are other owners being hit with extra costs?

Because when you buy an apartment, you are not just buying the unit…

You are buying into the entire building.

Step 2: Understand the Strata Report (This is Where Deals Are Won or Lost)

A strata report tells you everything the listing does not.

Here is what to look for:

GREEN FLAGS

Strong sinking fund (Capital Works Fund)

• Shows the building is prepared for future repairs

• Less chance of surprise costs

No active special levies

• Means no current major financial burden

• Cleaner ownership position

Planned upgrades (without special levies)

• Indicates proactive management

• Shows the building is being maintained properly

Minor maintenance only

• Things like cosmetic wear, small upgrades

normal and expected

RED FLAGS

Active special levies

• You inherit these as the buyer

• Often tied to bigger issues

Defect history (especially legal disputes)

• Water ingress

• structural issues

• ventilation defects

If the building has gone through legal action with the builder, that is a big signal.

Ongoing rectification works

• Means the building is still being fixed

• Not fully resolved

High strata fees without clear benefit

• Especially if paired with defect issues

• You are paying more + carrying risk

Missing documents

• Fire safety certificates

• compliance records

Not always a deal breaker, but adds uncertainty

Step 3: Compare Value – Not Just Price

Let us say you have two apartments:

Apartment A:

• Clean building

• No special levies

• Stable strata

Slightly higher price

Apartment B:

• Defect history

• Special levies in place

• Ongoing works

Slightly cheaper

Most buyers go:

“B is cheaper, better deal”

But the smarter question is:

Is it cheaper for a reason?

Step 4: Use This in Negotiation

This is where most buyers leave money on the table.

If you identify:

• upcoming works

• defect history

• higher levies

You now have leverage

Instead of:

I’ll offer close to asking price

You should be thinking:

• What risk am I taking on?

• What future costs exist?

• What should I discount for this?

Step 5: When to Walk Away

Sometimes the answer is not (negotiate harder) it is:

This is not the right building

Consider walking away if:

• Defects are widespread and unresolved

• Multiple special levies keep appearing

• Legal issues are ongoing with no clarity

• You do not feel confident in the building

Final Thought

Buying an apartment is not just about:

• how it looks today

It is about:

what it will cost you tomorrow

The Goal

You don’t just want to buy a property…

You want to buy the right property at the right price with the right risk level

Need help comparing properties properly?

If you are unsure how to read a strata report, assess building risk, or negotiate based on real data – that’s exactly what I help clients with.

Reach out to Truth Group for:

• Buyer’s Agent support

• Mortgage planning

• Property strategy