Are you in compliance with the new legislation?
A sinking fund is a document set up by the owner’s corporation to cover the costs of future capital expenses of communal areas, and will usually include painting, driveway refurbishment and replacement of common property items like carpets, roofing and guttering and lift overhauls etc.
From July 2009, all strata schemes are required by law to have a 10-year sinking fund plan in place (Section 75A of the Strata Schemes Management Act 1996).
This means that owners’ corporations must demonstrate how they are to repair and maintain the common parts of the property and how they will cover the cost of these works. The 10-year plan will vary depending on the age and condition of the property, with older properties requiring more funds than newer properties.
Washington Brown’s Sinking Funds will be tailor made to each individual property and be an accurate assessment of works required and forecast costs to undertake these works. Although owner’s corporations can undertake the 10-year plan together themselves it is recommended that professional experts such as Washington Brown are engaged to carry out these reports. By having Washington Brown undertake your sinking fund, you are guaranteeing that the sinking fund is an accurate and detailed report identifying all capital works and current market costs prepared by experts within this field of expertise.
The 10-year plan must be approved by owners and reviewed and amended within 5 years of the initial report. Should the report be prepared by Washington Brown then future reports will be based upon a revision fee rather than the initial report fee.
Organise your sinking fund now and comply with amended legislation!
NSW Government Office of Fair Trading – Sinking funds In a strata scheme website
Why Washington Brown?
We have set up a special division dedicated to helping Strata Managers and Owners’ Corporations comply with the legislative changes.
More than 30 years of experience has given us a comprehensive historical database that accurately forecasts future expenditure, based on the specifics of your property. We use professional experienced surveyors who are experts within this field.
A good plan will help to:
- Better manage cash flow
- Reassure potential buyers that the property has no nasty surprises
- Potentially improve the property resale value
- Ensure levies are fully tax deductible* in the year that they’re incurred
- Spot trouble areas ahead of time
*For investment properties
Special offer – SAVE 20%
Get a Building Replacement Insurance Report at the same time as a 10-year Sinking Fund plan, and you’ll save 20% on the combined fee. The replacement insurance report includes all costs, from demolition and building replacement, to architect and consultant fees.
Disclaimer: The report does not cover costs associated with structural defects or by accidental damage or general administration costs like gardening, cleaning, pest control, minor plumbing works, pool consumables and capital improvements.