A 96-lot residential scheme on the Gold Coast · Body Corporate Sinking Fund Forecast
Avoiding a $4,375-per-lot special levy
The sinking fund forecast was seven years old. The lift and the roof were both approaching replacement, and the committee wanted to know before the AGM whether the fund could cope.
$420,000 short in year eleven, which would have meant a special levy of about $4,375 per lot.
Insight
Built on the scheme's current quantity surveyor's report, the forecast showed that if contributions stayed where they were, the fund would run $420,000 short when the roof fell due in year eleven, forcing a special levy of about $4,375 per lot.
Advice
Increase sinking fund contributions by 12% next year and 3.5% a year after that, and obtain a fresh quote for the lift before year six so the forecast can be tightened.
Opportunity
A steady contribution path that funds both replacements with no special levy, and a forecast that meets the nine-year reserving requirement with room to spare.
Results
The committee tabled the recommended schedule at the AGM with a two-page summary, and owners approved it.