Apartment living in New Zealand comes with a layer of costs that many first-time buyers don’t see coming. Body corporate fees on older buildings can hit $6,500 or more per year, and that’s before a special levy lands for a new roof or earthquake strengthening. These charges sit on top of your mortgage, rates, and personal insurance, which means the monthly cost of owning an apartment can be a lot higher than the purchase price suggests.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Unit title ownership is the legal structure behind most apartments and townhouses in New Zealand. You own your individual unit and a share of the common property — driveways, lifts, gardens, stairwells. The body corporate, made up of all unit owners, manages those shared areas and makes collective decisions about maintenance, insurance, and rules. What looks like a straightforward purchase can quickly become complicated when the body corporate’s finances are thin or its plans are out of date. Here’s what you actually need to know.
When you start looking at apartments, you’ll hear the term body corporate constantly. It’s worth getting clear on what it actually means.
What I tend to notice is that buyers focus on the purchase price and the view, then get blindsided by the body corporate costs later. The four takeaways above are the ones that matter most when you’re weighing up whether a particular apartment is actually affordable.
What body corporate fees actually cover — and what they don’t
Regular levies are the ongoing fees you pay monthly or quarterly. They cover day-to-day expenses: building insurance, management fees, cleaning of common areas, and contributions to the maintenance fund. On older buildings, those regular levies can run to $6,500 or more per year. Newer buildings with lifts, pools, or gyms can be even higher.
But the regular levy is only half the picture. Special levies are one-off charges for unexpected or major expenses — a new roof, earthquake strengthening, recladding, or replacing a lift. These can run into tens of thousands of dollars per unit, and you are legally obligated to pay your share. There’s no opting out.
The Long-Term Maintenance Plan (LTMP) is supposed to forecast what’s coming. Every body corporate is required to have one that looks ahead 10 years or more, with estimated costs for each major repair or replacement. A well-funded LTMP with realistic costings is a green flag. A plan that hasn’t been updated in years, or has a fund balance well below what’s needed, is a warning sign that special levies are coming.
Worth weighing against the regular levy figure is what you’re actually getting for it. If the building has a lift, a gym, a pool, or extensive landscaping, those amenities drive up ongoing costs. If the building is older and hasn’t had major work done recently, the LTMP will tell you when that work is due — and how much it will cost.
Mistakes buyers make with body corporate properties
Skipping the Pre-Contract Disclosure Statement
Sellers are legally required to provide a Pre-Contract Disclosure Statement (PCDS) before you sign anything. It includes current levies, the LTMP and fund balance, any pending or planned special levies, body corporate rules, known disputes, court proceedings, weathertightness claims, and insurance details. A lot of buyers skim this document or leave it to their lawyer without reading it themselves. The PCDS is where you find out whether the building has a leaky home claim, whether insurance premiums have doubled, or whether a $50,000 special levy was voted on last month. If you don’t read it, you won’t know until it’s too late.
Ignoring the long-term maintenance fund balance
The LTMP balance is the single best indicator of whether the body corporate is managing money well. A healthy fund means the owners have been saving for future work. A low or empty fund means the body corporate has been keeping levies artificially low, and the bill for future repairs will land on you as a special levy. If the fund balance is well below the projected costs in the LTMP, that’s a red flag. Ask your lawyer to explain what the gap means in dollar terms for your unit.
Not checking insurance history
Body corporate insurance premiums have risen sharply in recent years, particularly for buildings in areas exposed to earthquakes and flooding. Some buildings are becoming hard to insure at all. Buyers should check what the policy covers — material damage, natural disaster, public liability — and whether premiums have increased significantly. Also check the excess amount. If the building has had multiple claims, the excess could be high, and that cost gets passed to owners. Rising insurance costs are actively putting off some would-be apartment buyers in early 2026, according to Cotality data.
Overlooking the body corporate minutes
The PCDS gives you a snapshot, but the body corporate minutes from the last few years tell you the real story. They show what owners have been arguing about, what repairs have been delayed, and what special levies have been proposed or passed. Your lawyer can request these as part of your due diligence. If the minutes show frequent disputes about money, or a pattern of deferring maintenance, that building is likely to hit you with costs down the track. For complex situations, getting a second opinion from a specialist can be worth the cost — services like JustAnswer Real Estate Law can connect you with a property lawyer for a specific question without a full retainer.
How to properly assess an apartment before you buy
Read the disclosure statements like a detective
The Pre-Contract Disclosure Statement is your first and best tool. It must include current body corporate levies and what they cover, the LTMP and its fund balance, any pending or planned special levies, body corporate rules and recent changes, known disputes or court proceedings, and insurance details. Pay close attention to the LTMP balance. A healthy fund suggests good management. A low or empty fund means future special levies are almost certain. The Pre-Settlement Disclosure Statement comes closer to settlement and flags any changes since the PCDS. If anything looks different, investigate further with your lawyer before you settle.
Dig into the body corporate minutes
Your lawyer can request the minutes from the last two to three years of body corporate meetings. Look for patterns: Are there frequent discussions about unpaid levies? Have there been votes on special levies that didn’t pass? Are there ongoing disputes about maintenance or rules? The minutes will also tell you whether the building has had weathertightness claims or other structural issues. If the minutes are sparse or the body corporate seems disorganised, that’s a risk factor.
Check the insurance policy in detail
Ask for the current insurance policy and the last three years of premium notices. Has the premium gone up by 20% or more in a single year? Is the building in an area prone to natural hazards? What’s the excess? Some policies have excesses of $10,000 or more for certain claims, and that cost gets shared among owners. If the building is in a high-risk area, check whether it’s fully insurable at all. Some insurers are declining to cover certain older buildings or those with known issues.
Understand the special levy history
Ask the seller or your lawyer to list every special levy in the last 10 years, what it was for, and how much it cost per unit. If the building has had multiple special levies for the same issue — like repeated roof repairs — that suggests the body corporate is patching rather than fixing. If there have been no special levies but the LTMP shows major work due soon, the bill is coming. A building that has been well-maintained with regular special levies is often less risky than one that has deferred everything.
For buyers who want to run their own checks, a property due diligence checklist can help you track what you’ve reviewed and what’s still outstanding. It’s not a substitute for professional advice, but it keeps you organised.
What’s changing: upcoming regulatory shifts
The Unit Titles Act 2010 is the current framework, but there have been ongoing calls for reform around disclosure requirements, dispute resolution, and insurance transparency. The New Zealand government has signalled potential changes to make body corporate governance clearer and to strengthen the requirements around LTMPs. If you’re buying now, the rules you’re dealing with could shift in the next few years. That doesn’t mean don’t buy — it means factor in some uncertainty around future compliance costs. Your lawyer should be able to tell you whether any proposed changes are likely to affect your specific building.
Frequently asked questions about body corporate fees
Can I refuse to pay a special levy? ▾
What happens if the body corporate has no money for repairs? ▾
Are body corporate fees tax deductible for investors? ▾
How do I find out if a building has weathertightness issues? ▾
Can the body corporate rules change after I buy? ▾
What’s the difference between a unit title and a freehold title? ▾
The one question that changes everything about apartment buying
The single most important question you can ask before buying an apartment in New Zealand is not about the view or the location. It’s this: what does the long-term maintenance plan say, and how much money is actually in the fund to pay for it? That answer will tell you whether the apartment is genuinely affordable or whether you’re buying a future bill for tens of thousands of dollars. Rising insurance costs and the potential for regulatory changes under the Unit Titles Act add more uncertainty, but the fundamentals are the same: a well-managed body corporate with a funded maintenance plan is a good sign. One that’s been kicking the can down the road is a risk you need to price in.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read The Ultimate Apartment Buying Checklist for Savvy NZ Investors.
Sources and Further Reading
Apartment Buying in Auckland: The Brutal Truth They Don’t Tell You — A deeper look at the Auckland market and the specific costs and risks buyers face there.
Unit Titles Services. Pre-Contract Disclosure Statement. 🔗
Opes Partners. Body Corporate Fees in New Zealand: A Complete Guide. 🔗
Cotality. 2025’s Sluggishness Carries Over Into 2026. 🔗
Real Estate Authority. Unit Title Guidance. 🔗
Settled.govt.nz. Understanding Types of Ownership. 🔗
