“You are not a big fan of accumulated sinking funds. Why?
…..a sinking fund can’t earn high returns. And what you do earn is taxed. And the tax advantage are extremely limited.”
I’m not sure that is correct, although it may be for a strata scheme that has a commercial component. But I believe that in a scheme where all units in the Strata are residential and not commercial then interest received from the Sinking Fund is exempt from tax.
Can you please confirm that this is true and, if so, correct the misleading statement above from this podcast?