During that exciting and nervous time between acceptance of your Offer and Final Subject Removal Day, you often have lots to do and lots of information to read.
When buying a Strata Property you often receive a giant package of information with Strata Minutes, a Form B with Financial information, By-Laws, Rules and a Depreciation Report.
The Depreciation Report is usually quite lengthy and can look a little overwhelming.
In this blog post, I want to give you a quick overview of what it is about and why it is so important to read it.
What is a Strata Depreciation Report?
Think of it as a 30-year Cashflow Forecast for the Common Property in a Condominium or Townhome complex. This typically includes the Buildings, Roads, Landscaping and Recreational Facilities.
It is a very useful document for a Strata Corporation, current Home Owner and a prospective Home Owner to see what capital expenses are coming up and whether there are sufficient funds in the Contingency Reserve Fund to cover them or...