5 units /flat complex 3.5k sinking fund

Discussion in 'Property Experts' started by Luckysingh20, 4th Mar, 2020.

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  1. Luckysingh20

    Luckysingh20 Member

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    Dear fellow investors

    I am Looking at unit deal, everything looks fine so far except sinking fund is 3.5k which seems low as i would expect atleast 25k (5k each unit). Whats your thoughts on this. Building is 1975 built. (506msq land) Good land content in the heart of Gold coast.
     
  2. Propertunity

    Propertunity Well-Known Member

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    It's not unusual to have low funds in the capital works (sinking) fund. Just be prepared for a special levy to be struck if something unforeseen eventuates. Have you looked at the strata report yet? What is their history of raising special levies? Any reports from building consultants or engineering companies recommending works that have not been given approval by the BC? Do they have a 10yr plan for how they intending spending the capital works fund monies?
     
  3. Luckysingh20

    Luckysingh20 Member

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    Thanks for reply. Yes i am going to ask strata report . Hopefully i will understand it. If not , which professionals should i go to, TO look into all of this that you mentioned.
     
  4. twobobsworth

    twobobsworth Well-Known Member

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    What are the yearly sinking fund contributions?
     
  5. Luckysingh20

    Luckysingh20 Member

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    3k a year per unit . There are 5 units in that complex.
     
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    Hard to say anything until you see the strata report
     
  7. Marg4000

    Marg4000 Well-Known Member

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    Depends on the condition of the building. Fund may be low if there has recently been some upgrades. A run down building and a low sinking fund is a different matter.
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    So they are raising $15k a year but there is only $3.5k in their currently? Maybe they recently did some works and drained the fund or maybe the other owners aren't paying their funds in.
     
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  9. Propertunity

    Propertunity Well-Known Member

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    If it's the first strata search report you have ever read, then with no disrespect, you will likely not understand all the important things you need to. (I can say this having read many, many hundreds of these reports over the last decade).

    I'd be asking your solicitor / conveyancer.
     
    Luckysingh20 likes this.
  10. Luckysingh20

    Luckysingh20 Member

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    Thanks
     

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