1. To start, it’s important to understand what we mean by “enough”.
If you’ve missed our email explaining how to determine whether a strata has “enough” in its contingency reserve fund (CRF), you can check it out here: Does the Strata Have Enough in its CRF?
2. So, how much can buyers expect to pay in special levies because BC stratas are not saving enough in their CRFs to pay for all their future capital projects?
Because we’ve had a chance to review so many strata corporations all across BC, we’ve gathered some metrics that allow buyers to make more informed decisions about their purchases. Based on the last 1,457 strata corporation reviews we’ve completed, as of today (March 13, 2024), buyers can expect, on average:
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To pay approximately $17,826 in total special levies over the upcoming 10 years, because most BC stratas are not saving enough in their CRFs to pay for all their future capital expenditures.
3. That being said, it’s important to recognize that each strata is unique and buyers have to consider each individual strata/circumstance.
Our estimate is based on:
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Projections included in strata corporation depreciation reports.
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Strata corporations:
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Of various sizes
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Of various ages
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In different areas of BC
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With different types and number of assets and amenities, and
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Of various construction types
When comparing any individual strata corporation with the “average BC strata”, it’s important to put things into context and be aware of individual differences.
4. Making your buyers aware of the possible future special levies that they may face enable them to:
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Make a more informed decision about their purchase and the total costs they will likely face, and
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Ensure they are putting enough funds aside to be able to pay special levies that they may face in the future.
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