Should sinking fund forecasts change if a strata building may be sold to a developer?
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Interest is currently being shown by a number of developers in our 41 year old strata building. It is highly unlikely that the building will be standing in 5-10 years time.
What bearing does this have on our forecasting over the next 10 years for major items like window replacement, balustrade, etc? Monies are accrued now for expenses unlikely to be actualised. To reduce contributions, some owners have requested we remove these items from the forecast. Is this the correct way to deal with the problem?
Should costs come from admin or sinking fund for upgrades vs like for like?
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From time to time we do a major replacement of body corporate boundary fences. At budget preparation time, the levy for this has always been included on the Sinking Fund Levy.
Can sinking fund money be used for unexpected admin expenses in a body corporate?
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In preparation for my new role as treasurer on our committee for the next financial year, I am doing some research.
The webinar, 'A deep dive into body corporate financials' was helpful and presented in an easy-to-understand way to construct and manage a budget.
Do you need a special levy for approved capital works above budget if sinking fund has sufficient funds?
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If owners vote to approve capital expenditure materially more than that allowed for in the sinking fund budget for that item and
- the aggregate of other expenditures in the budget won’t be equivalently underspent, and
- there are adequate funds available, albeit earmarked in the 15-year sinking fund forecast for maintenance;
is there a requirement for either:
Do townhouses need mechanical breakdown insurance for garage doors?
Our Owners Corporation Manager said that we had to include mechanical breakdown insurance in our policy to cover garage doors. Each unit has one garage door for personal use. The Air conditioner is also personal use. We have no lifts as we are just a group of townhouses.
Can tenants vote on owners corporation loan approvals?
If an owners corporation is considering funding much needed repairs using unsecured loans ($300k) from a number of tenants at 5% interest over 7 years, are those same tenants able to vote on approving the loans at a committee meeting (they are all on the committee)? Or, due to a conflict of interest, should they be prohibited from voting?