Body corporate fees on townhouses
If a townhouse is part of a strata or community scheme, every owner pays regular levies to the owners’ group that runs the shared parts of the complex. These are often called body corporate or strata fees.
What it’s called in each state
| State or territory | Owners’ group |
|---|---|
| Victoria | Owners corporation |
| New South Wales | Owners corporation (strata scheme) |
| Queensland | Body corporate |
| Western Australia | Strata company |
| South Australia | Strata corporation or community corporation |
| Australian Capital Territory | Owners corporation |
| Tasmania | Body corporate |
What the fees usually cover
- Insurance for the common property and, in many schemes, the buildings.
- Maintenance of shared areas such as driveways, gardens, lighting and bin stores.
- Management and administration.
- A fund for long-term repairs and replacements, often called a sinking fund or capital works fund.
Why townhouse fees are often lower
Townhouse complexes usually have fewer shared facilities than apartment buildings — no lifts, pools or gyms to run. Smaller complexes also mean fewer owners to share costs with, though, and a smaller fund for big repairs.
Before you buy a new townhouse
- Ask for the proposed budget and levies for the first year, and what they include.
- Check whether building insurance is covered by the levies or is your own responsibility.
- Read the proposed by-laws or rules on pets, renovations, parking and short-term letting.
- Be wary of first-year budgets that look unusually low. Fees are set by the owners once the scheme is running.
Townhouses without a body corporate
Some townhouses are on a Torrens (freehold) title with no owners’ group. There are no levies, but you insure and maintain your whole property yourself, and any shared driveway is usually managed through an easement agreement with your neighbours.
This is general information, not financial or legal advice. Get advice that suits your situation before you buy.