Sinking Fund
A Sinking Fund is a portion of the annual maintenance fees that is set aside for repairs or refurbishment to maintain the resort in the condition that you purchased in. Most commonly you will find that the percentage which is retained is around 10% of the annual maintenance fees, however this will depend on the timeshare resort in question and if you have any queries regarding this information it is suggested that you request the exact percentage directly from your Management Company or resort.
The Sinking Fund is set aside for repairs in the common areas such as resurfacing the pool area, decorating the reception of the resort, replacing equipment in the gym or even the entrance gate. Also the Sinking Fund would cover all units and their fixings for example, if a sofa bed needed replacing earlier than expected the cost would be drawn from the Sinking Fund as would any fixtures within the timeshare unit including TV, Washing Machine or even a Bathroom Suite. All in all a Sinking Fund is their as a safety device to maintain unexpected expenditure.
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