Sinking funds are an important part of maintaining condominium or housing projects. They are typically collected as a one-time payment during the purchase of a new condominium or house, especially when buying off-plan properties. The primary purpose of a sinking fund is to create a reserve to cover the costs of non-routine maintenance, structural damage repairs, and replacement of common areas or infrastructure in the property complex. This could include major projects like roof replacement, elevator repairs, or significant landscaping work. The use of these funds is usually regulated by the condominium or housing association, with expenditures often requiring a vote of approval from all co-owners. As the property ages and potential for major repairs increases, there may occasionally be a need to top up the sinking fund. This financial reserve ensures the long-term upkeep and value of your property investment.