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.
To arrange for a sinking fund forecast report call Independent Inspections today! 1300 857 149
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