Also known as a 10 Year Plan or Sinking Funds Forecast, a Reserve Fund Forecast is a detailed cost schedule that ensures property owners allow for sufficient financial reserves to maintain the building. Most importantly, these clear financial reports minimise the future risk of insufficient funds, creating a safety net for both the body corporate and the building itself.
If you are a Strata Owner in Western Australia, the new and improved Strata Title Reform states that every Strata company with 10 or more lots or a replacement cost of $5 million or more, must establish a 10 year plan that sets out;
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Find out more about our Reserve Fund Forecast below or call us for a chat on 089424 5800.
Alternatively, you can send us an email for an obligation free quotation.
A Rawlinson’s (W.A.)'s 10 Year Plan covers expenditure of a capital or non-recurrent nature including periodic replacement of major capital items (including plant and equipment), and other spending that may reasonably be required for the safe operation and upkeep of the building. It does not include expenditure on capital improvements. The reports will include an escalated cash flow forecast for the 10 year plan.
The cost of maintenance contract items are normally included within the administration fund, therefore they are excluded from the Reserve Fund Forecast.
These items include, but are not limited to:
Our comprehensive report will explain how we have estimated the expected life of the items, the included and excluded items and a summary of costings.
Rawlinsons (W.A.)'s reports can detail the expected yearly costs for up to 15 years (sample below), however, we recommend the Reserve Fund Forecast be reviewed annually to include any changes arising from extraordinary expenditure, inflation, local market factors and the general building condition.
A small sample of an annual average costs summary is included here, please note, our reports are comprehensive and the items per year are details in full within our forecasts. If you wish to look at a full sample, please contact us today.
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