Hi there Bee,
there are 4 components of your question:
1. what is maintenance cost
2. What is sinking Fund
3. Will it stay the same
4. who determines this cost
1. maintenance cost or management fee
The management fee is for day-to-day recurrent expenses of maintaining the
development. The amount collected for this has to be enough for the managing agent to pay
the following expenses.
- Cost of looking after the common property
- Payment of insurance premiums
- Other recurrent expenses such as managing agent's service and consultation fee besides amounts covered by the sinking fund
2. Sinking Fund
The sinking fund is a fund collected to provide for future capital needs. The amount
in the fund must be enough to cover the following expenses.
- Painting of the common property
- Acquiring movable property
- Renewing or replacing any fixtures on the common property and other
property belonging to the Managing Agent/Committee
- Replacing, repairing or making good the common property
- Any debts other than amounts covered by the management fund
- Other capital expenses that may be incurred
By understanding what they are - you can see the difference.
3. The amount payable may not stay the same, as costs of managing the estate very likely increase over time, as the estate ages, it naturally needs more and more repairs, costs increase, insurance premium increases, manpower costs increase etc, hence in general it is expected that over time this amount increases marginally.
4. These matters are discussed by the Managing committee which is made up of residents of the MCST. These members are voted into the MC. How they operate the MC is in accordance with the laws - Land titles (Strata) Act and the Building Management Strata Management Act, the accounts and how the money is being handled will be audited and how you use the funds will be discussed during the AGM every year.
There is still alot of details but I guess this should be sufficient to answer your question.
Hope that clarifies,
Making dreams come true, one home at a time,
Yian Tay
ERA Realty Network Pte Ltd
Mobile:
82884499
Email: yiantay.era@gmail.com
CEA Regn - R027190C
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