Apartment Budgeting 101 : Interactive Webinar

Team ADDA organised a special Interactive Webinar Episode on January 23, 2021 on the nuances of Budgeting In Apartments. Here are the takeaways from the Session.

https://youtu.be/KxRbZRi1Bfg

Budgeting In Apartments : The Takeaways

  1. Before Budgeting for your Apartment, ensure all financial records of Previous Years are appropriately audited, verified and signed off by your Auditor. A best practice is to have two statements – Half Yearly and Annual.
  2. Prior to Apartment Budgeting, negotiate all AMCs. The bulk expenditure goes to Asset Management. This will give a fair idea of fair distribution of funds.
  3. Analyse Income & Expense trends of previous financial years to arrest Fund Leakage.
  4. Divide your budget into OPEX (day to day expenses), CAPEX (long term expenses), Contingency (emergency expenses).
  5. Principles to prioritise your CAPEX budgeting – impact on Revenue, impact on longevity of assets/property, preventive maintenance.
  6. Consider investing part of the Revenue.
  7. Strategise and implement Cost Optimisation methods.
  8. Bring in Digitisation to balance Expenses versus Income.

Webinar Q&A

Q: What should one keep in mind when taking the Financial Handover from the Builder?

A: The following documents should be in proper order :
1. Deed of Declaration
2. Status of collected Corpus Fund, Taxes & complete Financial Statement.
3. Ownership/transfer of ownership status of lifestyle (clubhouse, gym, swimming pool, etc.) and parking facilities.

You can check out more details here.

Q2. How to choose your Association Bank?

A: Check if the Banks satisfy the following criteria :
1. Verified & approved by RBI.
2. Success rate with maintaining high value accounts.
3. Interest offered as per Market Trends

Q3. Is it advisable to make Capital Expenses from the Regular Income?

A: It is strongly advised to utilise regular income for day to day expenses. Capital expenditures are large in nature and it is advisable to build a corpus fund to take care of such expenses in budgeting in apartments.

Q3: What are alternative revenue generation streams for Housing Societies?

A: Cost optimisation, renting out facilities, programmes like ADDA RevGen. Click here for a detailed report on this.

You May Also Like

About the Author: Karnika Roy