Arkcoll, K and Guilding, C and Lamminamki, D and McManus, LA and Warnken, J, Funding common property expenditure in multi-owned housing schemes, Property Management, 31, (4) pp. 282-296. ISSN 0263-7472 (2013) [Refereed Article]
Copyright 2013 Emerald Group Publishing Limited
Purpose: The purpose of this paper is to advance a set of criteria for appraising the merits of alternative options to financing common property capital expenditure in multi‐owned housing (MOH) complexes and to then draw on this conceptual framework to determine which mode of common property capital expenditure funding is preferable.
Design/methodology/approach: A priori reasoning has been provided to pursue the study's objective.
Findings: Sinking funds represent the preferred approach to financing common property expenditure in MOH schemes and special levies are the least preferred approach.
Research limitations/implications: Due to the a priori based conceptual development undertaken, some subjectivity is bound to be invoked.
Practical implications: The study provides key insights to government policy makers charged with drafting MOH legislation and provides strong support for those jurisdictions that require sinking funds to be raised in MOH complexes. The study also informs the owners executive committees of MOH schemes of the benefits of maintaining sinking funds.
Social Implications: The study highlights the considerable MOH unit owner financial distress that can be averted by pursuing a policy of raising sinking funds.
Originality/value: The study has immense originality, as it is the first academic study to focus on MOH common property capital expenditure issues.
|Item Type:||Refereed Article|
|Keywords:||condominiums, strata title, reserve fund, sinking funds, special levy, housing|
|Research Division:||Built Environment and Design|
|Research Group:||Urban and regional planning|
|Research Field:||Housing markets, development and management|
|Objective Division:||Commercial Services and Tourism|
|Objective Group:||Property, business support services and trade|
|Objective Field:||Property, business support services and trade not elsewhere classified|
|UTAS Author:||McManus, LA (Professor Lisa McManus)|
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