By Conrad Vass · Market Insights ·
Quick answer
Rather than focusing solely on the existence of major works, buyers should consider whether the project has already been funded and planned. In some cases, this can provide an opportunity to purchase within an improving building without facing the uncertainty of future fundraising or unexpected levies.
Key takeaways
- Funded vs Unfunded: A funded maintenance program often offers more certainty than unresolved building defects.
- Added Appeal: Completed upgrades can improve both presentation and long-term buyer appeal.
- Greater Certainty: Buyers may benefit when major works have already been budgeted and funded.
- Well-Managed Buildings: In older inner-city strata schemes, planned maintenance is typically a sign of responsible management.
When buyers see "major works" mentioned in a strata report, the immediate reaction is often concern. Many assume it means future costs, disruption and uncertainty. In reality, the more important question is not whether a building has major works planned, but whether those works have already been funded.
There is a significant difference between a building with a problem and a building with a solution.
A building with a problem is one where everyone knows repairs are needed, whether it's a leaking roof, ageing balconies or deteriorating common areas, but there is no clear plan or funding in place to address them. Owners may still be debating costs, special levies and project timelines.
A building with a funded solution is very different. The owners corporation has already completed much of the difficult work. Levies have been raised, contractors have been engaged and the project is either underway or scheduled to begin. The uncertainty has largely been removed.
According to Conrad Vass, timing can play an important role when purchasing into a strata building.
As Conrad often explains, buyers sometimes focus on the existence of major works without considering where the building sits within the process. If the costs have already been factored into the building's planning and funding structure, a purchaser may be entering after much of the financial burden has already been addressed.
This is particularly relevant across Sydney's established apartment markets, including suburbs such as Surry Hills 2010 and Redfern 2016, where many buildings have matured alongside the neighbourhoods around them. Ongoing maintenance is a normal part of strata ownership, and well-managed buildings regularly invest in upgrades to protect both appearance and long-term value.
For buyers, this can create opportunities that are often overlooked.
Once scaffolding comes down and projects are completed, the building may benefit from a new roof, upgraded balconies, refreshed common areas, improved waterproofing or façade improvements. These works can enhance presentation, functionality and buyer appeal, yet in some circumstances the previous owners have already contributed significantly towards the funding required to complete them.
Rather than focusing solely on the presence of major works, buyers should examine the details contained within the strata records. Is there sufficient money in the capital works fund? Have contracts been signed? Has the scope of work been clearly defined?
When those questions can be answered confidently, much of the risk associated with major repairs may already have been addressed.
That is why funded projects often deserve a closer look. In some cases, buyers are purchasing into a building that is actively being improved without having to navigate the uncertainty, debate and fundraising that occurred earlier in the process.
Final Thoughts
Major works are not automatically a warning sign. The real distinction lies between unresolved maintenance issues and a building with a funded and structured plan for improvement.
For buyers, understanding that difference can reveal opportunities that may be overlooked by others. For sellers, it can help reposition major works from a perceived concern into evidence of proactive building management and long-term investment in the asset.
At Space Property Agency, Conrad Vass helps buyers and sellers assess these factors in context. A well-funded upgrade program is often less about future risk and more about understanding where value may already be taking shape.
For tailored advice on buying, selling or assessing a strata property in Sydney's inner-city market, contact Conrad Vass at Space Property Agency.
Suite 13, Level 5, 35 Buckingham St, Surry Hills NSW 2010
0418 225 089
Follow Conrad on X: @VassConrad97853