在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
The value of being on the body corp committee was bought home to me recently when a ten year sinking fund plan was commissioned.
Its for a block of 30 units about 15 years old in Canberra. The BC has about $100k in its sinking fund and I always thought that was a pretty strong position.
The plan has come out saying that if we continue with the same contributions, just adjusted for inflation, the $100k reserve will turn into a $150k negative balance by 2020.
I continued the supplied spreadsheet an extra 10 years till 2030 and found we will be $1.6M in debt.
The only way to continue will be to massively increase the contributions.
So, with this insider knowledge, maybe it's time to sell before the massive bills start coming in.
I'm curious to know what expenses will be costing $250K over the next nine years? Especially on a 15 year old building.
wylie said: ↑
I'm curious to know what expenses will be costing $250K over the next nine years? Especially on a 15 year old building.Click to expand...The big costs are:-
Upgrade Lift $63k
External Painting $95k
Internal painting $70k
Some of the commitee want to install a $120k solar unit on the roof, its something we just cant afford, hopefully they will see that now.
If those figures are already on the record as needed in a certain timeframe, then wouldn't selling now mean that potential buyers would see them in a search of the body corporate records?
It could be too late already.
And, if it was mine, I would be selling now .
To me the lift upgrade seems like the only unexpected cost.. I'd expect at least a nasty maintenance bill after 15yrs anyway. The painting should be factored into the sinking fund since day one - that shouldn't be unexpected. I think it's also expected that the bc increase with cpi.. labour and parts always increase.
Imo, solar panels are a pretty good investment they should pay for themselves before 5yrs, and after that they should make you money..
I wouldn't sell unless you were really sure the fees were to sky rocket unexpectedly? Regardless, anyone doing their DD will see these costs in the bc minutes now (as Wylie pointed out).
Just curious peastman,
Would you buy into another block in the future that had lifts?
In the past, there had not been a long term financial plan, just a bit of a guesstimate, which seemed to be working fine. Thus the 100k in reserve. This type of planning seems to be the norm from my experience. A few people of unknown qualifications sitting around a table for an hour or two coming up with dubious decisions. Thats why I like to be at that table, gives me some control of the decisions.
I cant see solar panels paying for themselves. I have done the calculations for my PPOR in the past, as well as for this property and it just does not work our feasible.
mary&mat said: ↑
Just curious peastman,Every property has to be looked at on its own merits.
Would you buy into another block in the future that had lifts?Click to expand...
Normally I prefer no lift or pool, but I bought this in 2003 for well under its real value. It's almost tripled since then.