What is a depreciation report?
What is a depreciation report?
Be aware that buyers and banks will consider these before they buy or lend. One concern from the chair of CHOA of BC is that a sampling of 2,000 stratas in BC shows that only about $17 per month is contributed to the contingency fund whereby the amount should be 3-4 times that amount to properly maintain a complex. There are about 26,000 strata corporations in the Province whereby most are considered to be underfunded.
A depreciation report is a legislated planning requirement for strata corporations in British
Columbia. Depreciation reports are used to establish long term planning for common property and
common assets to determine:
1) What assets you own ( an inventory )
2) The asset condition ( evaluation )
3) When things need to be replaced ( the anticipated maintenance, repair and replacement )
4) How much money you currently have ( contingency reserve report )
5) What it is likely to cost for future replacement ( a description of the factors and assumptions in
projecting costs)
6) How you are going to pay for the costs ( three cash flow models projecting 30 year
replacement periods )
Be aware that buyers and banks will consider these before they buy or lend. One concern from the chair of CHOA of BC is that a sampling of 2,000 stratas in BC shows that only about $17 per month is contributed to the contingency fund whereby the amount should be 3-4 times that amount to properly maintain a complex. There are about 26,000 strata corporations in the Province whereby most are considered to be underfunded.
Tina Mak Personal Real Estate Corporation
Your Vancouver Radio Realtor
(The Bridge from East to West since 1992)
#1 Female Agent since 2002 @ Coldwell Banker Westburn Rlty
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