What is a Sinking Fund?
A Sinking Fund is a legally required Budget to address ongoing Maintenance and Capital Works Items in Bodies Corporate or Owners Corporations.
The Body Corporate or Owners Corporation Management Committee is responsible to make sure that a Sinking Fund is arranged for the buildings and property that are commonly owned.
The Sinking Fund is normally produced to cover a 10 year period and sets out the Work Items, when it is budgeted for and how much Money will need to be needed each financial year to make sure that the work is carried out at the appropriate time.
The sorts of items that may be found in a Sinking Fund Budget includes painting, tiling, landscaping, etc… and many other general property maintenance items. It can also include budgeting for any new Capital expenditure for the property, that the Body Corporate or Owners Corporation Committee have approved to proceed with.
Each Unit holder will be expected to make their contributions so that the building is adequately maintained to the level set by the Body Corporate or Owners Corporation Committee.
A Quantity Surveyor can help by identifying and costing issues that need to be fixed and let you know whether you have allowed the right amounts, when putting together your Sinking Fund Budget.
Just tell us what type of Body Corporate or Owners Corporation you have, how many Units are in the Building and we will find suitable Quantity Cost Professionals for you.
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It can save you time, money and worry.