Apartment and building look nice. Located in a very desirable suburb. But the strata funds are in deficit, with potential special levies upcoming. Should I run?

Apartment looks nice. Building looks very nice. I won't name the suburb, but it is a very desirable area. Life in this suburb will be great.

I purchased the strata report. The admin funds are in a moderate deficit. The capital works fund is in a surplus. Overall, the strata balance sheet shows a healthy surplus FOR NOW (but SLs may be pending in 2026).

The admin fund deficit has been present over the last few years. I forgot if the deficit has gotten worse over the years, I will re-read the strata report.

Admin expenditure in 2024 was $X.

And yet admin levies for 2025 are set at $X-10%.

This means the admin fund will continue to go into further deficit in 2026.

A repair to a big-ticket item has been flagged. Quote is quite expensive, but affordable when divided up over all the owners. A potential SL has been flagged.

An investigation into another issue has been flagged. If the other issue needs a complete replacement item, the replacement will be big-ticket. Average cost of this type of item is $100-150k.

What are the other owners thinking? Surely they must know costs and problems will just snowball?

I admit I am seduced by the apartment, the common areas, the building, and the suburb.

My gut is telling me to run. I think I should trust my gut.

Advice please?

Thank you.