Managers

The increasing demand for quality, competitive management services means strata managers are looking for ways to enhance their service offerings. Many strata managers are now including borrowing as a funding option for their clients, after recognising its clear advantages.

Owners have voted against sinking funds for years. They might not have understood the financial details, but intuitively they've actually been making a sound financial decision.

Sinking Funds are costly - they subject to inflation, subject to increases in the scope of work while waiting to accumulate monies, subject to legal obligations whilst work is not done and any returns are subject to tax.

But most importantly, almost every owner has better uses for hard-earned cash than having it sit inactive in a sinking fund.

The same, multiplied by 10, applies to a Special Levy - which you know are deeply unpleasant for many owners.

In comparison, borrowing proves to be the better option for most owners and most buildings - which is why increasing numbers of strata managers are presenting and recommending it to their clients.

With strata borrowing, owners can invest in their property and get enhanced lifestyle, capital returns and rental returns now. It's like a sinking fund in reverse, but because it's usually cheaper, it creates greater value.

Click on our Testimonials and Case studies for real examples of how Lannock has helped managers and owner corporations.