Why You Need A Sinking Fund Forecast – Qld

One of the benefits of living in a Body Corporate is the fact that everyone contributes their fair share to the future upkeep of the property.

This is done through a regular drip of savings.

  • In Queensland, it is called a Sinking Fund;
  • In New South Wales, it is called a CapEx (Capital Expenditure) Fund;
  • In Victoria, it is called a Maintenance Fund.

And some of those major items can be very expensive indeed. They can run into tens of thousands of dollars and even hundreds of thousands of dollars.

What is covered in a Sinking Fund

Maintenance and repair items that would be covered by these funds can include:

  • Painting of the building
  • Overhaul of lifts
  • Driveway refurbishment
  • Replacement of fencing
  • Replacing common property on the interior and exterior of the building, including carpets, roofing and guttering
  • Any emergency expenses that may arise

Ideally, Sinking Fund accounts ought to have enough money put away to pay for these expensive items without the need to raise a special levy or take out a loan.

It’s all about spreading the load – and that takes some planning.

Plan for the future

Planning begins with a Sinking Fund forecast which identifies these big-ticket items, and:

  • Their current condition;
  • The estimated time before replacement or major repairs are necessary; and
  • The estimated cost to replace or repair at that time.

In Queensland, a body corporate needs to budget for major capital spending for the current financial year and the next 9 years. Considering the involved process, it’s not a surprise that Body Corporate Committees prefer to invest in a qualified Quantity Surveyor like Star BMS to prepare 15 year Sinking Fund forecasts to give committees the broadest possible overview of future expenses.

Our experts not only have the experience to identify and accurately calculate the costs of the future common expenses they but also provide a program that details when these works ought to be scheduled what works are required in which sequence so that later works do not damage earlier repairs.

Why you can trust Star BMS

Star Building Management Services (Star BMS) is a facilities management company established in 1992 to meet the growing need for quality asset management in the Body Corporate sector.

For more than two decades, Star BMS has earned a reputation for providing superior service to our clients.

Our services include:

  • Building Management and Maintenance Systems;
  • Common Property Condition Reports;
  • Building Management Statements;
  • Insurance Valuation;
  • Sinking Fund Forecast;
  • Fire Safety Adviser Appointment;
  • Occupiers Statement;
  • General Safety and Building Fire Safety Compliance report;
  • Cleaning;
  • Fire Evacuation Signs;
  • External Cladding Champion.

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