Sinking Fund Forecast
In Queensland, each body corporate is required to have a 10-year sinking fund forecast in place.
The sinking fund (also called a capital works fund) is a body corporate administrative fund, financed by owner levies, and is used to pay for planned future capital expenses such as painting, roof repairs, lift maintenance and any major improvements.
A Sinking Fund Forecast is a report that considers and predicts these future capital expenses. It is then used to calculate how much to collect from lot owners to fund the long-term maintenance of a building during the forecast period.
Strata Umbrella will provide you with 15-year Sinking Fund Forecasts that meet all obligations of the Body Corporate and Community Management Regulations.
An accurate sinking fund forecast will ensure that lot owners are putting the ‘right’ amount in their scheme’s sinking fund.
This means owners will not be stuck with large one-off levies whenever an expensive emergency cost arises. Nor will they be paying unnecessarily high levies to over-fund non-existent or exaggerated expenses.
An accurate sinking fund forecast is vital for the financial stability of a scheme especially in older buildings.
Each of our sinking fund forecasts are carefully considered in order for the financial burden of funding capital works projects to be properly accounted for and shared equitably among all owners in a strata scheme.
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