How to develop your own basic Sinking Fund Plan.

Step 1 – List all common property

Put together a comprehensive list of all the common property of the scheme which may include: letterbox, intercom, lighting, incinerators, hot water services, grey water or water re-use systems, rainwater tanks, waterproof membranes, lifts, paving, water features, swimming pools, pool filters or heaters, gymnasiums and exercise equipment, gardens, plants, pots, screens, pergolas, awnings, shadecloth, retaining walls, or television antennas.

Step 2 – Estimate when repairs will be needed

Decide on a time-frame for repair work, cyclical maintenance and replacement for items. Long-term owners or your strata manager may know from previous experience how often repairs and maintenance are needed. For repainting, for example, you could use guarantees or information provided by previous tradesmen to get an idea of how long the existing paintwork will last. Warranty statements and/or service plans may help you estimate the working life of items such as automatic garage doors, communal washing machines and lawnmowers.

Step 3 – Estimate costs

Investigate the cost of replacing items. Refer to service plans, previous quotes and receipts of items as a guide to the approximate costs of future repairs. Obtaining current quotes and talking to tradespeople may also help.