DON’T LET THE FUND SINK A WELL-PLANNED SINKING FUND HELPS THOSE IN MULTI-UNIT DEVELOPMENTS TO SPREAD THE COST OF REPLACEMENTS OVER MANY YEARS.
I
t was a cold, wet winter morning. My mother led me by the hand to the green-fronted post office. 5p stamps placed weekly in my savings book would in time amount to a reasonable pot. The autumn seemed far off but it did come and my father brought home his crops. We planned our holiday and my
savings book was in a healthy condition, with many pages of Friesian Bull stamps in an array of neat lines. My mother said that money grows on the tree of patience. The need to prepare for future capital expenditure can be a heavy burden, particularly for someone who has just invested in a property and depleted their savings. However, with careful planning, an understanding of the potential work needed and an accurate projected cost, this burden can be lightened. Pay a little on a regular basis into a sinking fund and the significant cost can be spread out over a number of years and thus more manageable.
FEATURE Noel Larkin MRICS MSCSI Chartered Building Surveyor
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SURVEYORS JOURNAL Volume 11, Issue 2, Summer 2021
