A decision not to act is still a decision. You’re deciding to do this “later.” And later will cost you more than you think.
Across WA, strata companies are facing a perfect storm: rising costs, ageing buildings and an increasingly complex decision-making environment. These factors make it harder than ever to pass necessary works, approve a special levy or to borrow.
The result is predictable. Motions get voted down. Decisions get deferred. And while the council deliberates, project scopes grow and costs climb – turning what was once a manageable repair into a major, unplanned capital works project.
Is the Cost of Delay Purely Financial?
Rarely. Kicking the can down the road tends to compound the initial problem in ways that go beyond the budget. It spawns:
- Growing repair scopes
- Urgent compliance pressures
- Stress on councils and strata managers to make timely decisions
- Greater risk in the long-term condition and value of the building
The stakes have never been higher. And costs will only continue to rise.
Why Are Strata Repair Costs Rising?
Over the past five years, construction costs in Australia have surged by nearly 50%, driven by labour shortages, supply chain disruptions and global events affecting fuel and materials. Ongoing geopolitical tensions in the Middle East have placed further pressure on petrol and freight costs – factors that directly influence building materials, logistics and contractor availability.
For many WA apartment owners, this has meant significant and unexpected increases in repair and maintenance costs.
How Doing Nothing Turned a $250,000 Repair into a $750,000 Project in a Year
One WA client learned firsthand how costly doing nothing can be.
A property in East Perth first sought funding for $250,000 of necessary repair works in 2024. They chose to do it “later.” It cost them an additional $500,000.
Just a year later, when they chose to act, continued deterioration combined with rising labour and material costs pushed the same project to nearly $750,000 – almost three times the original estimate.
The delay didn’t just defer the cost. It multiplied it.
Defects don’t patiently wait while owners and councils deliberate. They spread, they sprawl, they worsen and cost your community more.
This is not an isolated case. Across Australia, delayed maintenance and necessary works are routinely escalating into costly, large-scale projects owners weren’t prepared for.
Acting Early Protects Your Building… and Your Budget
Australia is now home to more than four million people living in strata – in buildings collectively worth over an estimated $1.4 trillion. With infrastructure ageing and compliance regulations tightening, proactive maintenance is no longer optional. It’s essential!
Tackling necessary works sooner stops small problems from becoming big, costly ones. It also gives councils the breathing room to proactively plan, make more informed decisions and choose the right projects to protect and grow the value of owners’ assets, rather than scrambling to act under pressure.
Is Having a Reserve Fund Enough for Strata Works?
Many apartment owners assume a reserve fund is the safest and most responsible way to finance necessary works. But in most cases, it simply isn’t keeping pace with the cost of the works it’s supposed to cover.
Reserve funds are typically invested in low-risk accounts, which means low returns and slow growth. This makes a reserve fund one of the least cost-effective funding options in a rising cost environment.
What Happens When Rising Costs Outpace Your Reserve Fund?
In simple terms, it means the real value of your reserve fund is quietly shrinking. The money you contribute today will buy less tomorrow – and in this rising cost environment, the gap will only get bigger.
You save. Costs rise faster. Your fund falls behind. The repair and maintenance bill continues to grow… then what?
Are Special Levies the Best Option for Strata Works?
Not always. In today’s economic climate, special levies can create significant delays and financial stress for owners. However, special levies have an important role to play in strata funding and are traditionally the go-to funding solution for many strata councils.
Not every household has $5,000 or $15,000 available at short notice. Even a modest special levy can strain household budgets, particularly for retirees and families already facing rising living costs, or investors managing multiple properties.
For councils and strata managers, this presents a practical challenge: how to fund urgent works without placing undue pressure on owners.
Concerns about affordability often result in delays. Delays increase costs and reduce affordability, compounding the stress and the concerns they were trying to avoid.
The Real Cost of Doing Nothing
“We’ll deal with that later” is one of the most expensive sentences in strata.
It really means “we’ll be paying a lot more for it later.”
Delays almost always equal higher costs. The damage and impact go beyond the budget. Deferred decisions create uncertainty, stress and unexpected costs for all owners down the line.
The funding decisions that strata companies make directly impact:
- Community wellbeing and livability
- The cost and tax liabilities for owners
- Each owner’s return on investment
Buildings do not repair themselves. Issues don’t wait patiently. They escalate. They compound. They multiply.
But timely, informed decisions can positively change the outcome.
For WA strata companies, the message is clear: acting early isn’t just responsible… it’s economical.
Keith Hallet Lannock E: keith@lannock.com.au
