Sydney apartment: buy at A$2,143,000 or keep renting with high strata fees?

[loft.balanced]

I’m comparing my current rental with a similar Sydney apartment priced around A$2,143,000. Mortgage costs, tax, maintenance and association dues would put ownership well above my rent, although part of the mortgage payment would build equity. I may also move within five to seven years.

How would you weigh that flexibility against purchase and eventual selling costs? The building fees concern me most: they could rise, but low fees might also mean neglected maintenance or weak reserves. I’m interested in what tipped the decision for anyone who ran a similar buy-versus-rent comparison at this price.

 

[miro.dawn]

With a possible move in five to seven years, I wouldn’t treat equity as the deciding factor. Separate mortgage principal from the actual costs of owning, then compare those costs plus buying and selling expenses with rent and the return your unspent cash could earn elsewhere. A short holding period gives you less time to recover transaction costs, particularly if resale is slow.

 

[careful_garden]

What do the association dues actually cover? The amount alone says very little. I’d want the recent meeting records, maintenance plans, shared-building reserves, insurance arrangements and any major work under discussion. A well-maintained, energy-efficient building with adequate reserves can justify higher dues; a maintenance-intensive building charging high dues while still facing special contributions is a different proposition.

 

[rue_north]

Higher dues are not automatically the warning sign. My concern would be fees that look attractive only because necessary work has been deferred.

Check the recent meeting records, reserve position and maintenance plan to see whether spending is stable and properly funded. Those documents should also reveal whether energy costs or labour-intensive shared facilities are likely to increase the burden. That matters both while you own the apartment and when a future buyer assesses its resale value.

 

[eden.finch]

Also decide what happens if the move occurs earlier than expected. Would you sell immediately or keep the apartment and rent it out? The second option introduces tenant demand, vacancy risk and management workload, while the first increases your exposure to whatever the resale market looks like at that moment. If you definitely want a clean exit, renting now has real option value.

 

[jade_saves]

I’d build three versions of the next seven years: keep renting, buy and sell when you move, and buy then retain it as a rental. Use the same assumptions for inflation and investment returns, and show principal repayment separately so it isn’t mistaken for a cost.

Then stress-test the purchase case with higher building fees, unexpected shared works and a slower sale. Stress-test renting with rent increases and the possibility of needing another tenancy. Before deciding, have the building records and insurance position examined by someone familiar with Sydney apartments, and confirm any tax treatment that affects your particular circumstances. If buying only wins under optimistic assumptions, the flexibility of renting is probably doing more work than it first appears.