What is reserve study?
A Reserve Study is a review of the assets owned by a Body Corporate.
It enables Body Corporate members, owners and prospective owners to accurately anticipate upcoming major expenses, and ensure that Reserve Accounts (Sinking Funds) have enough money to meet such expenses.
The Reserve Study has two parts:
1. The Physical Analysis involves compiling an accurate inventory of the common area components, determining their overall useful life, remaining useful life, and the inflated cost to repair and or replace the components as required in future years.
2. The Financial Analysis assesses the organisation's current Reserve Funding information, including the current Reserve Fund Balance and the Annual Contributions levels.
Once the physical and financial information has been accurately collected, we then assess the organisation's financial situation, and structure a New Recommended Funding Plan.
Back to List