What is the Sinking Fund?
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.
Taking an example of a 60 square metre condo unit in a development in Patong with a sinking fee of 500 Baht per square metre; your one time fund payment will be calculated as follows:
60 square metres x 500 THB per square metre = 30,000 THB.
Along with the common area fee, the sinking fund is an extra payment that is necessary when purchasing a condominium.