Greetings to valued condo board members! As the summer sun continues to shine, we, at Key Condo, are thrilled that all of our clients have already seen their exterior reserve fund projects completed for the year. This is because Key Condo takes a proactive approach to exterior reserve fund work by starting the quoting process in February each year.
But our dedication to optimizing our condo corporation clients doesn't end there. Now that summer exterior reserve fund projects are completed, it is the perfect time to turn our attention to investing the reserve fund.
Key Condo has observed the current market trends and identified promising investment opportunities to generate additional income for your reserve fund. Guaranteed Investment Certificates (GICs) and high-interest savings accounts are two safe options for condo corporations, both currently offering interest rates of around 5%.
Imagine investing $1,000,000 from your reserve fund in these accounts. That could potentially earn you an impressive $50,000 in interest in one year. By making your money work for you, you can help ensure your condo corporation is funded per the reserve fund study.
To begin your strategic investment journey, we recommend allocating funds that won't be required in the next five years into a GIC. GICs provide stability and security, guaranteeing returns over a fixed term. This approach protects a portion of your reserve fund while steadily accruing interest.
For the remaining funds, we suggest exploring high-interest savings accounts. These accounts offer flexibility, allowing access to your money if needed, while still providing a competitive interest rate. High-interest savings accounts are perfect for money that is budgeted in the reserve fund study to be spent in the next five years.
Key Condo advises condo corporations to partner with an experienced investment broker who will ensure that all deposits invested are fully insured by the Canadian Deposit Insurance Corporation (CDIC). This added layer of protection guarantees the safety of your reserve fund, providing peace of mind to condo board members and condo owners alike.
At Key Condo, we believe in the power of strategic planning and proactive management. Our holistic approach to condominium management involves continuously seeking ways to optimize your property's potential, ensuring the well-being and satisfaction of all condo owners.
Together, we can secure your condo corporation's future by making informed financial decisions. Trust Key Condo to be your partner in navigating the complex world of condominium management. We are dedicated to guiding you every step of the way, making your reserve fund work harder and smarter so owners can keep their condo fee contributions as low as possible!
Great advice to all condo boards Dana. It is a plus that Key Condo initiates maintenance and capital expenditures in early spring when the construction season is just beginning.
Ron H.