Sinking Fund forecasts and maintenance programs are mainly for body corporate strata titled buildings. The purpose is to keep the building in the same condition as it was when it was initially built. Just like a cars needs to be serviced to last well, the same applies for a building.
The Sinking Fund Forecast makes the information available that is required to set the contributions that will be required to raise enough capital for the following expenditures:
Capital expenditure of a non-recurrent nature
Periodic replacement of items of a major capital nature
Necessary unexpected capital expenditure
Items are listed in the plan and given a life.
Each item has a initial life and a life cycle to determine the costs and budget for the levies, to meet the requirements.
For more information about Strata Management and awareness of the issues that can arise in a strata scheme, please contact Independent Inspections on 1300 857 149.
Graphical Life Cycles
The reports are be designed with a broad spectrum of users in mind and include many aids to ensure a fast and comprehensive understanding of the critical information.
Update April 2014
Maintaining you property is always a contentious issue with owners and planning items at scheduled intervals can be confusing. By having a sinking fund forecast and maintenance plan in place gives a specific guide in the management of the property. The Sinking fund forecast is compiled over a 15 year period with some items forecast such as lifts and painting that have a major impact on the setting of the levies over this period of time.
Best practice in the industry is to have a 5 yearly review of the forecast, to revise costing over the period and to reduce the risk of a special levy. Legislation is somewhat fragmented in the states of Australia, but has proven to be an effective tool for the owner or a buyer. The biggest risk is where an owner buys into a unit complex with low levies in place and there are building issues then the owner sells, then a new owner comes with with no knowledge of the issues and then is forced to pay extra costs from the lack of planning of the previous owner.
Sinking Fund Forecast Services Locations:
Independent Inspections provides sinking fund services to all major cities in Australia such as Brisbane (QLD), Sydney (NSW), Melbourne (VIC), Adelaide (SA), Perth (WA), Darwin (NT), Canberra (ACT), Hobart (TAS), Gold Coast (Queensland).
For more information on sinking fund go to http://en.wikipedia.org/wiki/Sinking_fund