All Strata Schemes are required by law to have a 10 year Sinking Fund Forecast in place. Make sure your Sinking Fund Forecast is comprehensive, easy to read and customised for your needs.

WITH SEYMOUR CONSULTANTS YOUR SINKING FUND FORECAST WILL BE PREPARED PROMPTLY AND PROFESSIONALLY.

What is a Sinking Fund Forecast?

The Sinking Fund is a document set up to establish a reserve of funds to cover future expenditure for the replacement and/or maintenance and repair of building components at the end of their expected life. A sinking fund forecast will also include replacement of items of a major capital nature.
The sinking fund budget will fix the contribution amount required to cover the capital expenditure of the items listed above.

What Requirements Must a Sinking Fund Forecast Satisfy?

Sinking Fund Forecasts must satisfy the current requirements of the Body Corporate and Community Management Act 1997 (QLD) and Strata Scheme Management Act 1996. Effective 1996, all Strata Schemes are required by law to have a 10 year Sinking Fund Forecast in place. The Sinking Fund Forecast is based on a reasonable estimate of the expected life of the components listed in the forecast.

What Types of Things Are Covered in a Sinking Fund Forecast?

A Sinking Fund Forecast considers shared facilities in the body corporate complex as well as items that impact the look and feel of the property. The forecast pays particular attention to items that may require repair or maintenance for effective operation or to maintain a neat and tidy appearance.
Common items on the forecast list can include:

• Painting (Garage Doors, External Walls, Outdoor Areas, Fences etc.)
• Driveway Refurbishment
• Carpets & Flooring in Common Areas
• Roofing, Guttering, and Downpipes
• Rendering and Patching
• Landscaping
• Recreational Facilities (e.g. Pools & Tennis Courts)

How Often Should a Sinking Fund Forecast be Reviewed and Updated?

Sinking Fund Forecasts should be updated at least every three (3) years to take into account current market conditions.
It is also advisable to update your forecast whenever major works, painting etc is carried out to retain a realistic reserve and contribution levy.
The 10 year Sinking Fund Forecast must be approved by the owners and should be regularly updated at a period not exceeding 5 years from the initial report date. Where Seymour Consultants have already prepared an initial report you will only be charged a revision fee.

What’s included in a Sinking Fund Forecast Report?

With Seymour Consultants your sinking fund forecast can include:

• Financial start date, starting balance, allowance for future building escalation and contingency.
• The estimated life of components would be listed with their current estimated remaining life expectancy.
• The estimated life expectancy is sourced from industry trade specialists.
• The Sinking Fund can be either inclusive or exclusive of GST dependant on your instruction as our client.
• A general contingency to allow for unforeseen items.
• The sinking fund balance is forecast on expected contributions and expenses at the beginning of the financial year.

Our personalised approach takes into consideration specific building criteria and does not rely solely on computer generated figures.

Organising a professional Sinking Fund Forecast is easy. Call us now on 07 5573 4011 or Book Online.

Request Quote
Download Brochure