Accountants and Financial Planners

There is one golden rule for strata owners - get involved!

Whether your client is an owner/occupier or investor, the same rule applies. They have a unique opportunity to influence the future value of their property by attending general meetings. By being on the committee, they can help drive the decisions that will benefit owners. And if they don't get involved, someone else will.

So, participation is the key for your clients to safeguard and grow their investment.

Your client will also benefit if the owners corporation borrows - strata borrowing is off-balance sheet for a unit owner and so doesn't affect their cash or lines of credit. Sinking Funds and Special Levies on the other hand have an immediate and adverse effect on cash flow.

Opportunity cost is a critical component of the cost of all strata funding. A sinking fund will constrain your client's wealth, preventing them from deploying their cash more appropriately.

In summary, when considering the three strata funding options for your clients, pay strong attention to the full cash flow implications of each option. Borrowing is likley to be a better option than the others.

Any questions? Give us a call.