The property consists of a circa 1970’s three-storey residential apartment development containing a total of twelve units and includes ground level under croft parking. Construction generally comprises brick external walls, aluminium framed windows and pitched tiled roofing.
Upon engagement to inspect and prepare a Maintenance Plan for the Owners Corporation it was discovered that there were numerous issues pertaining to existing structural defects, including requirements for underpinning and roofing works that were all required to be undertaken within the next four years. These issues were known to the committee, due to the structural engineer’s report obtained three years earlier.
Furthermore, the Owners Corporation had obtained quotations (>$55k) in structural works, (>$35k) in roof refurbishments, along with numerous other larger cost items. Due to the lack of understanding, poor decision making and absence of planning, the Owners Corporation had only collected $15k over the proceeding 3 years, which was clearly insufficient.
The resultant budget requirements to meet the engineers schedule required ~ $3,000 per lot annually for the next 5 years, before it was estimated budget reductions could be made.
This case study illustrates that whilst not all Owners Corporations require to prepare and implement a Maintenance Fund (only required for Tier 1 & 2), all owners corporations require repairs and maintenance. If the Owners Corporation had sought advise 10+ years ago, they would have been in a position where funds could have been raised over an extended period of time and more conservatively.
12 No Lots
$15k Starting Balance
$3,000 Ave Cost Per Lot