FINANCIAL STANDARDS IN CONDOMINIUM MANAGEMENT

Abstract

The idea of living in strata title housing, especially in condominiums, has become an aspiration among many Singaporeans. The limited land resources and the attractiveness of sharing common facilities among subsidiary proprietors have led to the popularity of such housing alternative. Besides paying the purchase price of the strata title unit, subsidiary proprietors have to also consider the monthly contribution to the Management Corporation of the development. This payment will vary according to the number of share value of the strata unit. The contribution is necessary to maintain the common properties belonging to the development. The degree of expenditure incurred in the management fund varies from development to development. This difference is due to the size, amount of facilities available and the age of developments, faking all these factors into consideration, the result for the standard expenditure and income items is obtained. This standard is useful to owners and managing agents as a guide on what should be the expenditure incurred and the desired contribution. Major expenditure items are identified and solutions raised to reduce the high expenses incurred.