advice on sinking fund -

[arriety]

Hi
I was wondering if anyone had any thoughts on how high sinking fund should be and how much per year should owners have to contribute. I have a unit in block of 8 and we already have 16K in sinking fund with no large repairs to be done. The roof was replaced a couple of years ago before I bought and the owners had to foot the large bill so they are worried about having to fork out that large amount again. However I feel for a 70s solid block paying $1000 each year into a sinking fund of $16000 seems excessive.

there is a breakdown report from the last property inspection but nowhere near the amount above to spend. what do other properties have in their sinking fund?

also can someone pm me the name of recommended Strata corp manager in Beenleigh Qld area.

TIA

 

[The Y-man]

Generally as little as possible.

Just propose that the sinking fund be kept at current levels. As long as the majority don't object, you have the call.

Cheers,

The Y-man

 

[arriety]

My thoughts exactly but this is my first experience with units in QLd (I have 2 in Adelaide) and was wondering if there were different rules in Brisbane - I suspect not.

 

[buzzlightyear]

Most body corporates should be doing a long term review (3-5 years) of the condition of the building, and with that comes recommendations of what are the key areas where updates should be made, expected timelines and likely amounts.

This then gives some comtext to what needs to be planned for re sinking fund and confidence in budgeting for all owners.

On the surface $250 per quarter ainking fund seems a bit high.

 

[Qlds007]

Arriety

Have PM ed you a BC Manager in Brissie.

 

[Celeste]

Hi all

I have just been pricing up bits and pieces for an apartment building of 15 also 30 - 40yrs old.

Most things are in the thousands, due to the need for scaffolding.
- aspetos roof replaced 2 yrs ago with colorbond - $ 17k
- painting No exact price just the mention of thousands. and thats just balcony and stair railings
- changing wooden windows for aluminium sliding - 1 x quote $60,000.00
- patio doors $1700 each there's 15
- re-surfacing carpark
- checking and fixing concrete cancer.
- plumbing, ground floor overflowing may need to replace ground pipes.


I think an apartment building of this age should have at least $20k. In a sinking fund. $40k would be better.

If you have owners that are willing to pay the extra, get it in the fund whilst you can. If you wait they may not have it or not want to pay it. Especailly if you are going to hold the apartment long term.

The one I am working on, no one wanted to pay up so nothing was done.
I had to point out that things are now dangerous and as the problems are know to us, if anything happens it's is negligence on our part and we can be sued. I am still having trouble getting them to agree......

So get it while you can.............

 

[twobobsworth]

I was talking to my solicitor about this recently. He said more than 80% of strata purchases he handles have around 15K-20K tops. He very rarely sees anything more and occassionaly sees less.

In NSW you are suppose to have a 10 year strata plan to ensure future owners aren't disadvantaged http://www.fairtrading.nsw.gov.au/A...nd_tenancy/ftr47strataschemesinkingfunds.html

However there are no penalities for non compliance.

 

[fernfurn]

If you had over $20k and only needed painting outside which would take most of that, once built up again, could all owners agree to drop the weekly premiums?

 

[travelbug]

I have been told that sinking fund quarterly payments are often 10% of the management fees (as a guide).

The 10 year plan should have been implemented by most stratas by now. There is a compliance schedule as to when your unit has to comply. All should be done by 2009.
You need to get one if you don't have one already. This will tell you expected costs for the next 10 years.
While I don't like having thousands of dollars of my money in a fund, it is crazy to have special levies all the time. My first IP had $50,000 in the sinking fund when I bought it. But a lot was spent on refurb, landscaping (this was in the 10 year plan). My 2nd IP had $300
They had just made the building fire compliant, painted etc. The fees were very low. We raised them at the AGM.

At the AGM each year you can adjust it depending on the needs. I really think you need the 10 year plan as a guide. From those I have seen they are VERY generous. You may not need to do all the things listed so if you are ahead of plan and things haven't needed doing you can scale back.