Your depreciation report is outdated, you could have an upcoming levy

Own Your Life ~ by Jessi Johnson

In this episode, we will discuss how most depreciation reports are outdated based on expired maintenance cost predictions and that your strata should update the report.
Do you own a condo or townhouse?
In the past, depreciation reports were created and values were estimated for work to be completed in the future.
This was way before the supply chain issues and the new crazy cost of building supplies.
Many condo strata organizations do not have enough money saved for the new value of the cost to fix and repair.
That means strata fees are either going to go up substantially or they will require levy or assessment payments.
Be proactive and ensure your strata's deprecation report covers today's prices, not pre-Covid/ pre-supply chain issues / pre-inflation.
This initial challenge lies in the cost of updating a deprecation report. They are very expensive to create
Depreciation reports can cost thousands of dollars, depending on the size and complexity of the strata corporation's common assets and buildings
I used to run a strata and served as president and vice president, so can speak from experience here.
A standard 8 foot 2x4, which isn’t actually that size, goes for about $4 CAD now.
Yes, it was way higher a couple of years ago but it is down again.
Going back 5 years ago, it was about $2.50. So, the cost is up about 37.5%.
However, you now also pay more tax on the higher amount so instead of paying $2.80, you are actually paying $4.48
That is a total cost of $1.68 more, per 2x4 board!
So the cost of the 2x4 board is up 60%, that is insane!
Yes, that is a small example but things like windows, plumbing, and electrical supplies are even higher.
So, if your budget is $1,000,000 to fix X, your strata likely does NOT have the capital to cover the difference.
Enter, the levy.
Did you know that you can not get a mortgage to cover a levy, in most circumstances?
Your strata will need to increase the strata payments to ensure you have enough to cover the cost of these expenses in the future.
I am not trying to freak you out but instead, prepare you for the inevitable.
Be proactive, talk to your strata. Prepare for the future.
👉 Learn more, call Jessi at 604 716 6474, email [e-mail] or schedule a time to chat here: https://calendly.com/jessirealestate