Investing Strata Capital Works Fund

Discussion in 'Business Accounting, Tax & Legal' started by Stoffo, 21st May, 2020.

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  1. Stoffo

    Stoffo Well-Known Member

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    Hi all,

    Anyone have any experience or tips as to investing their strata capital works fund balance ?

    Is it possibleto do, or legal ?

    Yes, you would have to keep an operating balance (or could use spare funds from Admin funds, to be reimbursed after next levies ?).

    Some larger complexes can easily find themselves with 6 figures in the bank after a few short years early on (when the 10yr plan allows for external painting to cost $200,000+ in 10 years).

    Seems a waste to have funds sitting there often not even keeping pace with inflation :confused:

    Have an AGM coming up and this is one of several items I'd like to raise for tbe agenda (to further limit committee spending/wasting on 2yr old building just because there's money in the bank :mad:)

    This is in NSW/Sydney :cool:
    TIA

    Admin, wasn't quite sure what forum this really fits into ;)
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    The issue is exposure to risk - you'd need to read the strata act and strayta management act as to how contributions to the sinking fund may be invested.

    Best case scenario will be term deposits or investment saver type accounts as opposed to a regular savings account.
     
    Ted Varrick likes this.
  3. Ted Varrick

    Ted Varrick Well-Known Member

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    10c mining stocks are probably not the best idea...
     
  4. Stoffo

    Stoffo Well-Known Member

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    Had been trying to decide, all on Black or Red :rolleyes:
    Ted's avatar clinched it, all on Red :D