Does your sinking fund cost you money

A few weeks ago I caught up with Paul Morton from our sponsors Lannock and he and I worked through his whizzbang spreadsheet software that showed, to my great surprise, how it can cost more to save up the money to fix common property than it does to wait till it needs to be fixed, then get a loan to do it.

This is a pretty controversial point of view but if it’s true and you as ordinary owners are paying more for repairs by saving up than you would by borrowing, it has to be examined.  Right now when interest on invested money is low and the same applies to borrowed money, the case has never been stronger.

Anyway, if you want to read Paul’s theory in detail, just click HERE