Underfunding condo reserve - good or bad for current and future owners?
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Discuss.
best-investment-options-condo-reserve-f ... st13781345
max88 wrote: ↑
Being underfunded is good for the current and future owners, in that 1) each owner take responsibility in managing their own reserve fund which can earn higher return by paying down mortgage; 2) underfunding is reflected in lower resale price which results in lower transactional costs such as RE commissions and land transfer taxes; 3) underfunding is reflected in lower property value which results in lower property tax.
Again, you will have hard time explaining to the owners why it's to their benefit with lower property value, with the different between high/low values in their pocket instead of in the reserve fund.
Discuss.