Their quarterly strata fees began at a manageable $600, but have ballooned to $3500 thanks to defect rectification work and the need to replace now illegal cladding.

“We’ve been trying to keep up with it, but it’s running us into the ground with the expense of the mortgage too. I’ve been pushing back on the strata company asking ‘how do you expect everyone to pay this much money?’ It’s so unmanageable,” he said, adding that the couple had to move out of the property to keep up with the bills.

“Now, because we couldn’t pay the special $20,000 levy upfront, a garnishing order has been put on the rent. We don’t get any rental income either, and there are also lawyer’s fees.”

Mr Stubing said the pair, who are hoping to get married next year, are trying to sell but the high fees are putting off buyers.

“We’re also renting elsewhere. Our monthly expenses are now so high we may as well have a $1 million house.”

Built approximately 12 years ago, the Kellyville Ridge apartment complex has a long list of defects and was built using external cladding that has since been banned in NSW due to fire safety risks.

“We bought when we were so young and thought strata fees were just about maintaining the cleanliness of the unit complex. The building has no amenities, so we never imagined it could get this expensive. The real estate agent advised us of the quarterly fees, but apart from that we didn’t look into it. Unfortunately, we made a bad decision,” he said.

UNDERSTANDING STRATA RISKS

Samantha Reece, Australian Apartment Advocacy director, said her group released an education kit to educate apartment buyers and current owners on strata living.

“We’ve asked the government to make that compulsory, because our research shows about 60 per cent of people who move into an apartment do so from a house so they’ve got no experience with strata costs,” she said.

“It doesn’t matter where you are in your life spectrum; if you’re a professional couple, a single parent, a baby boomer or a retiree, if you’re forced to pay $70,000 in six weeks – like a case recently in Melbourne – it’s a shock that could cripple you financially.”

She added that there needs to be more responsibility placed on builders and developers.

David Chandler, the NSW Building Commissioner who will step down from his role in August, successfully overhauled building regulations in the state after being granted expanded powers in 2023.

His department gained broad authority to inspect and order defect rectification to housing developments. The changes will allow inspectors to enter any dwelling while it is being constructed to look for defects.

“We’ve been allowing developers to self-certify for 20 years, and that was the death knell of quality in Australia, but the NSW government definitely has made the right changes. At the end of the day, all we’re asking them to do is meet Australian standards and national construction codes. And the majority of occasions, that’s not the case.”

HOW NEW PROJECTS ARE ADAPTING

Tim Abbott, director of Ray White Projects Lower North Shore, said the new residential sector is smartening up its act, because it has to.

“The certification builders and developers have to go through in order to get a building’s occupation certificate is far more stringent and time-consuming than it ever was,” he said.

When it comes to ongoing building costs, developers are also responding to consumer demand.

“I’ve certainly seen a trend for apartments that appeal to a wider group of people. One of our latest projects, Willoughby Grounds, has a mix of one-, two-, three- and four-bedroom apartments with downsizers, young professional couples, first-home buyers and investors buying there. The developer consciously decided to not include expensive amenities in order to keep the levies down,” Mr Abbott added.

With 186 units in the North Shore development, strata fees at the yet to be completed Willoughby Grounds will start at approximately $550 for a one-bedroom home.

“It’s just a matter of comparing all the pros and the cons. If you’re going to use the facilities, and you’re in a good financial position to do that then the amenities might be right for you. But what we’re finding is with the increased pressure on living costs lower strata levies are more attractive to buyers,” he said.

While new buildings have been in the headlines costing some residents thousands a quarter, Mr Abbott said a quality new construction can save residents in the long run.

“The good thing is, newer buildings are much more energy efficient, need less airconditioning, have great air flow, natural light and even solar in some. A new apartment will be a lot more cost effective than something that was built in the 60s or 70s.”