How much should a body corporate raise towards the sinking fund?

We are finding more and more with recent market influences, if a Body Corporate / Strata / Owner’s Corporation is raising less than $1,000 per lot annually towards their sinking fund, they are at greater risk of a special levy to be able to fund required works.

A well managed sinking/maintenance/reserve/capital works fund (and each state equivalent) can be the difference between being able to sell your strata-titled lot when you need to and for what it should be worth.

A scenario we have come across ALOT in recent years, is properties where they have decreased their sinking fund (or equivalent) contributions during the COVID-19 pandemic. Easing the financial burden during that period. Completely understandable. But then have failed to follow up and make up for the now significant shortfall in the fund due to the reduction and soaring construction costs.

There are of course many influences to consider when setting your sinking fund levy budget. Talk to the friendly team at GQS about updating your fund forecast today. 1300 290 235