What is a Sinking Fund and Why is it Important for Condominiums When the Money Runs Out

Nowadays, many people wish to own a condominium, but deciding to buy one — whether for personal living or investment purposes — is a major life decision. A common question for beginners is: where should you start when buying a condo? Most importantly, what should you look for when purchasing a condo to ensure that you get a quality property that truly suits your long-term lifestyle?

Many people may think only about location, price, and facilities, but in reality, the key factor that determines your quality of life in a condominium is the property management after the sale! Choosing a condo today requires you to look deeper into the building’s management and maintenance system.

This article serves as a complete guide for anyone wondering what to consider before buying a condo. We’ve compiled 8 essential checklists that will help you make a smart purchasing decision — and rest assured, if you follow these steps, you’ll find the right condo without being deceived!

1. Location and Future Value

Choosing the right location is crucial, as it directly affects your daily life and the potential increase in property value in the future. You should carefully consider the following factors:

• Transportation convenience: Is it close to the BTS/MRT, expressways, or main roads? How convenient is it to commute to work?
• Surrounding environment: Are there convenience stores, markets, shopping malls, hospitals, or parks that suit your lifestyle?
• Growth potential: Are there any upcoming developments such as new train lines or shopping centers that could increase the property’s value?

2. Developer’s Reputation

The credibility of the developer is not just about reputation — it’s a guarantee of the condominium’s quality. A professional and reliable developer directly impacts many aspects of your living experience for years to come.

• Construction and delivery quality: Experienced and reputable developers usually maintain strict construction quality control standards, reducing the likelihood of defects or damage after ownership transfer.
• Financial management: A financially stable developer has strong funding capability, ensuring the project is completed on schedule, not abandoned, and all facilities and systems are delivered as promised.
• Transfer of management authority to the condominium juristic committee: The most crucial part is post-sale management. Once the project is completed, the developer must establish a condominium juristic person and transparently hand over management to the juristic committee (consisting of residents) during the transition period.
• Management partnership: Leading developers often partner with professional property management companies or use modern condominium management platforms such as the Silverman all-in-one property management system to ensure high service standards from the first year of occupancy.

Therefore, before making a decision, you should review the developer’s background — whether their past projects were successful and if there were any major issues or lawsuits during handover. Doing so will make your condo purchase more secure and worry-free.

3. Facilities & Common Areas

Common area functions are the face of the condominium and play a vital role in enhancing residents’ quality of life, such as:

• Quality and quantity: Are the swimming pool, fitness center, garden, and co-working space appropriate for the number of residential units?
• Maintenance: Are the common areas always clean and well-maintained? This is the first sign of good management.

4. Juristic Management & Common Fees

This is a point many people overlook, but it’s one of the most important! The common fee is the heart of maintaining shared property assets, so it must be carefully considered.

• Reasonable rate: Compare the rate with the quality of facilities and services provided.
• Financial transparency: How does the condominium juristic person manage its finances? Are accounting records organized and easily auditable?

Therefore, you should look for a condominium that uses modern management systems, such as a condominium juristic accounting program. Such a system promotes transparency, accelerates financial processing, and builds residents’ confidence that their common fees are used efficiently and lawfully.

5. Sinking Fund

In addition to the monthly common fee used for daily operations, you should also check the Sinking Fund. This is a one-time payment collected from residents upon ownership transfer and is usually several times higher than the common fee per square meter. For older projects, ask the juristic person how much of the fund remains and how it is being used. If the balance is low, it could mean that when major repairs are needed, residents may have to vote to collect additional funds — a shared financial responsibility.

6. Security and Building Access

Nowadays, security means more than just guards and CCTV cameras. You should also consider how modern and efficient the systems are, such as:

• Fast and secure access systems: What technology does the project use for vehicle entry and exit? Modern condominiums should have systems like LPR (License Plate Recognition) cameras that automatically read license plates and open barriers, reducing delays at the gate.
• Visitor management systems: Does the condominium use a VMS (Visitor Management System)? This system records visitor information in detail and issues temporary entry passes quickly. These modern safety and access management systems are often part of comprehensive smart management platforms like those implemented by Silverman.

7. Maintenance Management & Incident Reporting

A condominium building naturally deteriorates over time, and delayed maintenance directly affects residents’ quality of life. Therefore, you must pay close attention to this aspect. Ask the juristic person about the following:

• Complaint and repair request system: How clear and efficient is the process?
• Work progress tracking: Through which channels can residents easily track the status of their repair requests or complaints?

The juristic person should systematically record the maintenance history of the building and all common equipment. This ensures that every repair request is properly logged and tracked efficiently, allowing issues to be resolved quickly and professionally.

8. Package Handling and Friendly Communication

Receiving parcels and communicating with the juristic office can often be stressful for modern residents. If you want to avoid such frustration, package management is just as important as the other items on this checklist.

• Package management: Is there a notification system when a parcel arrives, and is it stored securely?
• Communication channels: What applications or platforms does the juristic office use to make announcements or communicate with residents? A good condominium should have an instant and private communication system — such as the Silverman Resident Application — which allows residents to receive announcements, get notified when parcels arrive, and chat with the juristic office anytime without relying on personal apps like Line or Facebook.

The best condominium purchase isn’t just about getting a good price or a great location — it’s about achieving long-term quality of life and peace of mind. Therefore, evaluating the project’s management system is just as important as considering the basic factors.

If the project you’re interested in uses smart technology to manage operations systematically — for example, a condominium management platform like Silverman — that ensures transparency in financial management, faster maintenance handling, convenient parcel reception and communication, as well as reliable security systems with LPR cameras and VMS integration, it’s a strong sign that you’re about to own a well-managed, modern, and efficient condominium.