The sinking fund is a one time payment made by every owner of a unit in a condominium development. It is calculated based upon the square metres of each individual unit.
The fund is used to cover the cost of major repairs and upgrades a condominium building and common areas.
In Phuket this fund fee in condominium developments ranges between 500 and 1,500 baht per square meter.
As an example of a 60 square meter condo unit in a development in Patong with a sinking fee of 500 Baht per square meter, the one time fund payment would be calculated as follows: 60 square meters x 500 THB per square meter = 30,000 THB.
Along with the common area fee, the sinking fund is an extra payment that is necessary when purchasing a condominium.
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world.”
- Franklin D Roosevelt