Hi,
A thought I would like to open up for discussion.
There are those here that have bought and sold whole unit complexes.
As an owner of a townhouse, I know that I have to pay a sinking fund. This is usually a projected cost of repairs determined by a strata manager and paid fractionally on a per quarter basis.
In looking at buying whole complexes, how do investors factor in this?
For example, buying a single unit. One would check the sinking fund level, to see if its up to date.
A lower than expected fund, would mean the new owner may be up for some unexpected costs, if a schedule repair is due.
But with a whole complex, one that only has one owner, there may be an instance where this fund is not topped up, in fact it may not exist at all. In such cases, Im guessing such units are discounted.
But discounted to what extent?, is a strata manager consulted to see what the appropriate fund level should be and use this as a means to negotiate down?
This point is for both strated and non-strated complexes.
I need to names, but I would be interested to hear real-world experiences in this.
Michael G
A thought I would like to open up for discussion.
There are those here that have bought and sold whole unit complexes.
As an owner of a townhouse, I know that I have to pay a sinking fund. This is usually a projected cost of repairs determined by a strata manager and paid fractionally on a per quarter basis.
In looking at buying whole complexes, how do investors factor in this?
For example, buying a single unit. One would check the sinking fund level, to see if its up to date.
A lower than expected fund, would mean the new owner may be up for some unexpected costs, if a schedule repair is due.
But with a whole complex, one that only has one owner, there may be an instance where this fund is not topped up, in fact it may not exist at all. In such cases, Im guessing such units are discounted.
But discounted to what extent?, is a strata manager consulted to see what the appropriate fund level should be and use this as a means to negotiate down?
This point is for both strated and non-strated complexes.
I need to names, but I would be interested to hear real-world experiences in this.
Michael G