Understanding Levies: A Complete Property Guide

Buying your first home is exciting, until someone mentions the word “levies” and suddenly you’re wondering what exactly you signed up for. 

If you’ve recently bought a property in a sectional title complex, estate, apartment block, or townhouse development, you’ll almost definitely be paying levies. And if you don’t fully understand them yet, don’t stress - most first-time homeowners don’t. 

This guide breaks levies down in simple terms so you can understand: 

• What levies are 

• Why you pay them 

• What they cover 

• Why they sometimes increase 

• What happens if you don’t pay them 

• And how to avoid nasty surprises later on 

What Are Levies? 

Levies are monthly fees paid by homeowners in a shared property development. 

Think of levies as a “shared maintenance contribution” that helps keep the entire complex or estate running properly. 

If you own: 

• An apartment 

• A townhouse 

• A unit in a complex 

• A property in an estate 

…you’ll most likely pay levies every month in addition to your bond, rates, electricity, and other expenses. 

Why Do Levies Exist? 

Because shared spaces need money to operate and maintain. 

In a complex or estate, there are areas and services that everybody uses together, such as: 

• Security gates 

• Gardens 

• Swimming pools 

• Lifts 

• Hallways 

• Roads 

• Lighting 

• Electric fencing 

• Building insurance 
  

Instead of one person paying for all of it, everyone contributes through levies. 

What Do Levies Usually Cover? 

Levies differ from complex to complex, but they commonly pay for: 

1. Security 

This may include: 

• Guards 

• Access control systems 

• CCTV cameras 

• Electric fencing 

• Alarm monitoring 
  

Security is usually one of the biggest levy expenses. 

2. Maintenance & Repairs 

Levies help maintain common property like: 

• Roofs 

• Walls 

• Parking areas 

• Elevators 

• Plumbing in shared spaces 

• Exterior painting 
  

Without levies, complexes would fall apart pretty quickly. 

3. Cleaning & Gardening 

Levies often cover: 

• Garden services 

• Cleaning staff 

• Refuse area maintenance 

• Common area upkeep 
  

That neat, clean look in an estate doesn’t happen for free. 

4. Building Insurance 

Most sectional title complexes have insurance that covers: 

• Fire damage 

• Storm damage 

• Structural issues 
  

This insurance is usually included in your levy payments. 

Important: This is not the same as your personal contents insurance. 

5. Reserve Funds 

Good complexes save money for future repairs and emergencies. 

This reserve fund helps cover: 

• Roof replacements 

• Major plumbing repairs 

• Repainting projects 

• Unexpected damage 
  

Without reserve funds, owners may suddenly get hit with large once-off charges later. 

Why Do Levies Increase? 

Just like everything else, running a complex becomes more expensive over time. 

Levies can increase because of: 

• Inflation 

• Higher security costs 

• Water or electricity increases 

• Maintenance projects 

• Insurance increases 

• Poor financial management 
  

If a complex has been badly managed financially, levy increases can become very steep. 

What Are Special Levies? 

This is something every new homeowner should understand. 

A special levy is an extra charge owners must pay when the complex suddenly needs more money. 

Example: 

• The roof collapses 

• Major plumbing fails 

• Security systems need replacing 

• Reserve funds are too low 
  

Instead of increasing normal levies immediately, owners may be charged a once-off or temporary extra amount. 

These can sometimes be very expensive. 

How Can You Tell if a Complex Is Well Managed? 

Before buying property, always ask questions about the finances. 

A healthy complex usually has: 

• Clean common areas 

• Good security 

• Proper maintenance 

• Stable levy increases 

• A healthy reserve fund 

• Few unpaid levies from owners 
  

Warning signs include: 

• Broken infrastructure 

• Peeling paint everywhere 

• Frequent special levies 

• Very low levies that seem “too good to be true” 

Cheap levies today can become expensive problems tomorrow. 

What Happens if You Don’t Pay Levies? 

Levies are legally required. 

If you stop paying: 

• Interest may be added 

• Legal action can happen 

• Your property could eventually be attached or sold 

Even if you’re unhappy with the body corporate, you still need to pay your levies. 

Are Higher Levies Always Bad? 

Not necessarily. 

Sometimes higher levies actually mean: 

• Better security 

• Better maintenance 

• Strong reserve funds 

• Higher property value protection 
  

A well-maintained estate often helps properties hold value better over time. 

The goal isn’t always to find the lowest levies -  it’s to find good value and proper management. 

Questions Every First-Time Buyer Should Ask 

Before buying property in a complex or estate, ask: 

• How much are the levies? 

• Have they increased recently? 

• Are there any planned special levies? 

• Is the complex financially healthy? 

• What exactly do levies cover? 

• Are utilities included? 

• Is there a reserve fund? 
  

These questions can save you major stress later. 

Levies can feel frustrating when you first become a homeowner, especially when you’re already paying a bond and other monthly costs. 

But in a well-run complex, levies play an important role in: 

• Protecting your investment 

• Keeping the property safe 

• Maintaining property value 

• Preventing expensive future repairs 
  

The key is understanding what you’re paying for and making sure the complex is managed properly before you buy. 

Because the truth is: A property with good management and healthy levies is usually a much safer investment than one with “cheap” levies and endless problems later on.