Here and Now
Grand Reef in Dee Why was one of the first buildings to borrow from us – we were delighted to be able to help them through a very difficult period for such excellent results.Here is their story:
 | MAINTENANCE PLANNING | MAINTENANCE FUNDING – two separate processesWhat's the difference? Many owners think they are one and the same thing. However a Maintenance Plan and the actual Funding strategy are two distinct concepts. Lannock recommends that a lot of thought and effort is put into both in order to make the best possible decisions. Maintenance Plans A Maintenance Plan details anticipated major capital works - a list of what works will need to be done and when; and an estimate of their cost. Typically, a Maintenance Plan initially covers 10 years and is reviewed every five years. There is no legal requirement to include funding in your Maintenance Plan. it's the owner corporation's responsibility to create a Maintenance Plan (i.e. you don't have to pay for the privilege but you can engage expert advice if you wish). Funding How to fund the anticipated works is part of the owner's corporation yearly budgeting process. There is no need for a minimum balance in a sinking fund and no requirement for a minimum contribution. It is for the corporation to decide, each year in the budgeting process, how it wishes to fund future needs. Getting the right mix of sinking fund levies, special levies and borrowing should always be in your mind. Summing Up Take the time and make the effort to think long and hard about your building's future needs. As a completely separate exercise, develop a well-considered strategy for the best way to fund those needs. |
