Single family home: Where most of us grew up. We generally never knew when those big repair and replacement expenses were coming, or how big the financial hit would be.
But in assocation living, a "planning" mind set is a hallmark of a harmonious, financially strong Association.
Besides, as shown at the example at right, who's got five million dollars just sitting around, unless you planned for it?
101 - Importance of a "financial planning mindset" in Association living
102 - Why is a Reserve Study so important?
103 - Key forecast in a Reserve Study: cash flow analysis by year
104 - Often, three alternative funding plans in Reserve Study
106 - Sometimes, with careful reaching out, the worst neighbors can become better neighbors
107 - How can you be hurt - especially in condos - without enough reserves?
108 - VIDEO - Simple concept: 'Pay as you use it' but explain in calm, respectful way
109 - Reserve Underfunding: Pie chart explanation for how it happens
*Illustration below based upon graphics from Patrick's book "Condos, Townhomes and Home Owner Associations"
Future Repair and Replacement Costs:
Generally not planned
Example Repair Costs (single-family home):
Roof replacement: $10,921
Siding replacement (aluminum): $17,033
Future Repair and Replacement Costs:
MUST be forecast and planned in order to be successful
Example Repair Costs (240 units):
Roof replacement: $2.4 million
Siding replacement (wood): $3.1 million
