Early AGM choices set long-term shortfalls

Andrew explains first AGMs set low sinking funds and it's hard later to raise contributions as replacements near.

Play episode from 06:46

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Transcript

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Transcript

Episode notes

More than 1,000 private residential developments in Singapore are hitting their 30s, and some are starting to show signs of wear and tear.

But if residents have not been prudent in saving for these big-ticket items such as upgrading lifts and fixing spalling concrete, should the Government step in to help?

Mr Andrew Lioe, president of the Association of Strata Managers, and Mr Daniel Chen, a lawyer and partner at Lee & Lee, with a practice focused on Management Corporation Strata Title (MCST) disputes, weigh in on the challenges with managing sinking funds and the tension among different types of owners.

Highlights (click/tap above):

1:44 How are sinking funds for condos managed?

4:44 Sinking fund kitty management woes

6:48 Why do owners want to delay adding to the sinking fund?

10:30 Why can’t MCSTs force owners to pay?

14:27 “The en bloc situation is not that common.”

15:24 The owner-occupied vs investor-owned mindset

18:33 What changes to the law could fix this problem?

22:36 Are problems caused by a selfish few?

26:00 The tension in mixed developments

29:45 Should the Govt step in to bail out condos?

33:50 Red flags when buying resale condos