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What is a depreciation report?
What is a depreciation report?
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.
Click What a Strata Corporation Needs to Know About Depreciation Reports to read details
Tina Mak Personal Real Estate Corporation
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Categories: Vancouver real estate
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