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Poor level of investment in apartment block future development, says SCSI

The society of chartered surveyors in Ireland recently published an interesting article about investment in apartment block future development funding.

A staggering 3 out of 4 property managers haven’t set aside adequate funding for maintenance and apartment development.

Sinking funds – the name given to money set aside for apartment block maintenance and development– are vital for continuing apartment block improvement and maintenance.

According to the society of chartered surveyors in Ireland, projects undertaken without an adequate sinking fund leads to a drop in the property’s standard.

The lead author of this report stated that this is an urgent issue that needs to be addressed at government level and by the apartment block stakeholders.

According to the 2016 census, over 204,000 people occupy an apartment in Ireland and this number is likely to continue to increase year on year. As such the SCSI has recommended that apartment block owners, estate agents and other stakeholders need to be better educated on the importance of having an adequate amount of money set aside in a sinking fund.

The SCSI has stated that a sinking fund is in the stakeholder’s interest, and shouldn’t be seen as a further cost.

If you are interested in reading the text in full you can find it here:

https://www.scsi.ie/resources/pdf/2018/sinking_funds_in_apartments_2018

 

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