› Flat Chat Strata Forum › Levies and Unit Entitlements › Strata report – unreadable, and admin fund doesn’t look right › Current Page
Phil T said:
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Firstly, a large number of the 120 (!) pages are apparently unreadable, so he's had to go back and request a readable copy. (Are strata reports normally that large – I would normally expect a 30-odd page report. There are 80 units in this strata).
Next, of those readable pages, the solicitor has pointed out that it looks like the admin fund may be tens of thousands in debit, yet the sinking fund is about 150K in credit.
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–Phil.
Hi Phil,
The report does sound rather large and you are more on the money expecting about 30 pages, or less. One thing i have noticed is that different people / companies give a different amount of detail in their strata reports. As important as shopping around for the property you think is a good buy is shopping around for a strata inspector who offers a quality report at a good price.
The admin fund being in deficit and a sinking fund with good credit reminds me of home, the deficit is a big red warning light as there will be some management issues behind the cause. My SP ran a deficit in the admin fund for two years straight with a loss of equity being the end result. Following those two years it is now the highest levy ever and the hole in the admin fund was plugged by transfering money from the sinking fund to the hole. The dent put in the sinking fund will not be addressed; robbing Peter to pay Paul. We still have poor financial management.
Perhaps your time is better spent looking at property with a better management than looking into the issues with this particular property but Jimmy gives some nice advice as you can get some real bargains on the upswing, you just need to be sure that the upswing has started — that will take time so one decision seems to be where is your time best spent.