Understanding Strata Reports: Complete Guide 2025
Master strata report analysis with expert guidance covering capital works funds, building defects, insurance claims, and red flags.
Last updated: 10 December 2025
Key Takeaways
- Capital Works Fund should exceed $5,000 per lot for buildings over 10 years old
- Insurance claims history reveals hidden structural and maintenance problems
- Special levies of $8K-$30K per lot are common for major facade and lift work
- A strata report can prevent $50K-$180K in unexpected expenses
What is a Strata Report?
A strata report (Section 109 certificate in NSW) reveals the financial health, legal status, and physical condition of a strata scheme. For apartment buyers, this document can prevent $20,000-$180,000+ in unexpected costs. It contains capital works fund details, insurance claims history, by-laws, special levies, and maintenance issues. Professional investors always review strata reports before making offers.
Analyzing Financial Health
The Capital Works Fund is your safety net for major repairs. Healthy benchmarks: For buildings under 10 years: $3,000-$8,000 per lot. Buildings 10-20 years: $8,000-$18,000 per lot. Buildings 20+ years: $18,000-$40,000+ per lot. Red flags include fund balance below $2,000 per lot, declining balance over 3+ years, and history of special levies. Always compare fund balance to planned capital works schedules.