The building was designed and built to a very high standard as the first function was to host the commonwealth meeting in 2005, this was attended by many heads of state.

There has been and continues to be a program of replacements due to wear and tear and improvements these have all been covered by the maintenance charges. As more units are sold so the total amount of maintenance charges increases and therefore increases the total fund.

Recent maintenance has included the complete redecoration of the main restaurant, this included replacing all the tables and chairs as well as the carpet and drapes. Also all the sofa beds have been replaced in recent years.

Continuing replacement of carpets in various parts of the property and planned and budgeted improvements include replacing all the old style TV’s with new flat screen TV’s with wifi in each room.

There is no need for a sinking fund for major refurbishments as these are covered by the maintenance charges.

Wait until the resort is sold out and there are no developr funds to assist with maintenance and capital expenditure. Then you will see if your maintenance fees are kept as low as they are now. The Developers have a financial interest in keeping the resort pristine in order to get more units sold. Once these are sold they will leave with their money and it will be up to the owners to meet all these costs. For future reference it may be advisable once the final body corporate is established to recommend that a sinking fund be establihed to meet major refurbishment which in the case of this resort will be about 15 years away. By having a sinking fund all current owners pay their share rather than the owners at the time of refurbishment being faced with often large special levies. It costs a little more today but if you are in for the long term less pain downstream. I own at three resorts which have been through or are currently going through this major refurbishment and to our cost it was realised that sinking funds should have been established many years earlier to save us the pain of the often large extra levies.

It is interesting that the companies that own the development also have permission to develop just a few hundred yards away and the second development is aimed at the very high earners. This development is being delayed due to the recession but they have bought the land and plans are in the final stages.

The timeshare is only to and including the year 2045, it is therefore it is highly unlikely that the owners will want it to deteriorate as they will have full possession in 2046.

When they take ownership that is when you can expect the big money to be spent on refurbishment. Once they have sold your resort their concentration will turn to the new development next door and you as one of the owners will pick up the maintenance costs until handover. This is not a new phenomenon it has been going on for years. Developers start the development, sell it and move on to the next one. In reality you the owners are going to protect the developers interest in the property. They will have sold it at a significant profit, you maintain it for 30 years and they will get it back for free unless there is an agreed compsensation agreement in your purchase contract. Not a bad deal eh?