DO I HAVE A LEGAL OBLIGATION TO GET AN LTMP?
Yes, It’s the law – Section 116 of the Unit Titles Act 2010 requires you to have in place a regularly updated LTMP budgeting at least the next ten (10) years of building maintenance costs.
HOW OFTEN SHOULD I UPDATE MY LTMP?
By law you must upgrade your LTMP a minimum of every 3 years. However many buildings are choosing update every 2 years to keep up to date with ever changing building, plant and equipment costs.
NOTE: Recent studies show that construction costs can rise annually by 7.2% – independent bodies like interest.co.nz show that there is an undersupply in many trade areas keeping upwards pressure on costs.
WHAT ELSE IS IMPORTANT ABOUT UPDATES?
Avoid stressful special levies & ensuring current owners pay for their use of the building asset = a fairer user pays system that doesn’t penalise new owners..
UNDER FUNDED LTMP’S = LOWER VALUATIONS!
Below market sales prices are a reality for under-funded buildings. Savvy buyers negotiate using this.
WHAT’S INCLUDED IN MY LTMP?
Under s30 of the Unit Title Regulations, maintenance plans must cover common property, building elements & infrastructure. (The BC may decide to add or remove LTMP items by ordinary resolution.) The focus of a quality LTMPs is larger non-recurrent costs.
CAN I ELIMINATE FUTURE LITIGATION RISKS?
Yes. Avoid future legal hassles; there have been recent cases where new owners have taken previous owners/committee members to task for not fully budgeting for maintenance costs often after large special levies have had to be struck.
SHOULD I USE THE MOST EXPENSIVE PROVIDER?
Not necessarily. Find a quality value for money provider you trust. Quality reports have all the information you need without unnecessary page filling information that adds little value for you