1 - ADVANTAGE RESERVE FUND ACCOUNT (+)
The Advantage Reserve Fund Account is a savings and investment facility for the Reserve Funds of Body Corporates.
The Advantage Reserve Fund Account is created in order to maximize the cash asset for clients by receiving banking industry top tier interest rates on funds invested and enhanced with valuable client benefits based on good fund management.
Get going with OPENING AN ADVANTAGE RESERVE FUND ACCOUNT
+ How the Reserve Fund Account works:
- Top tier Prime interest rate linked returns on Reserve Fund Account over R500’000
- Elect to distribute funds over 3 investment levels to manage return on investment and cash availability
- Get access to ADVANTAGE support services for reserve fund management and project execution
- Get access to the Project Loan facility at preferential discounted lending interest rates
- Get access to ADVANTAGE support benefits for operating a Reserve Fund Account balance over 100% of annual levy contributions for the previous 12 months.
- The longer the Reserve Fund Account runs - the better the benefits and ROI on the Reserve Fund Account
STEP BY STEP guide to getting the account opened:
- Step 1- Contact Us by email (firstname.lastname@example.org) for information and account application.
- Step 2 – Trustees to review and complete the Advantage application and resolution confirming the decision of Trustees to open an Advantage Reserve Fund Account
- Step 3 – Getting FICA’D - Advantage will review the application and resolution then send you information required to get your Body Corporate FICA clearance done.
- Step 4 – Move the money – Advantage will send you the account details for Trustees to instruct the Property Managing Agents to transfer / implement payment of funds to the Advantage Reserve Fund Account.
2 - ADVANTAGE PROJECT LOAN FACILITY (+)
The Advantage Project Loan is a property finance facility that enables Body Corporates to afford the right investment in property maintenance and necessary improvements and to provide support advice to manage project risks.
The Project Loan facilities enables Body Corporates to manage finances better by distributing owners’ levy costs out more evenly over time, keeping your Reserve Fund and property investment more stable and making projects more affordable, while the Advantage support services enables better planning and decision making.
Advantage ensure that the project work is managed by appropriate qualified built environment professionals and cash outflows are certified and managed according to budget and cost to complete principles.
Get going with an ADVANTAGE PROJECT LOAN APPLICATION
+ How the ADVANTAGE Project Loan Facility works:
- Any legally compliant Sectional Title Scheme Body Corporate can apply for a Project Loan.
- Preferential Loan Interest Rates of Prime plus 2% calculated on the Project Loan Amount is available for Reserve Fund Account holders. (T&Cs apply)
- Duration of the Project Loan between 12 and 60 months to optimize affordability and investment criteria for the Body Corporate unique circumstances.
- Built Environment Professional (BEP) support is made available to ensure good planning and administration and loan draw-down process of the maintenance project works.
- BEP fees can be added to Project Loan Capital Amount.
- Loan Setup and administration fees are added to the Project Loan Amount
- Section owners’ Loan Portions are calculated based on PQ of the Project Loan Amount and paid monthly as a special levy for the duration of the Project Loan.
- Section owners participating in the Project Loan are able to settle their Loan Portion with one month’s written notice without penalty.
- Section owners can elect not to participate in the Project Loan by settling their PQ portion of the Project Cost as a lump sum special levy.
- The Project Loan and Project Cost is approved by way of Special Resolution passed by Trustees in accordance with STSMA and the Body Corporate.
- BEP Professional is appointed as Principal Agent in the project contract and signs off monthly progress payment certificates.
STEP BY STEP guide:
- Step 1- Information - Contact Us (email@example.com) for introduction meeting with Trustees to go over the Advantage Project Loan and Reserve Fund facilities and for Advantage to understand the maintenance project that you intend to undertake.
- Step 2- Project planning and pricing – Undertake assessment and detail planning with professional Principal Agent to get competitive quotes from reputable contractors to establish a competitive Project Cost.
- Step 3 – Loan Establishment – Advantage will review the project cost and propose Project Loan terms and PQ allocations to be presented to the Body Corporate. Advantage will assist Trustees with advice on procedures for Body Corporate approval of Project Costs and Project Loan.
- Step 4 – Project work: Principal Agent will finalize the appointment of project contractors together with the Trustees and the service providers with the relevant professional support. The Principal Agent will oversee the works and administer progress payment certification with involvement by Trustees and Advantage Project Loan administrator through to Project Close out.
For more information and assistance on the STEP BY STEP guide to getting the Project Loan and the project done: Contact Us (firstname.lastname@example.org
3 - ADVANTAGE FUND MANAGEMENT SUPPORT
Do your Trustees understand their legal obligations to manage the Reserve Fund correctly?
The Advantage Fund Management Support is an advice service provided to Body Corporate clients to assist trustees to manage the property asset and the Reserve Funds, in order that the Trustees are empowered to make good decisions.
Trustees of Sectional Title Schemes have legal responsibility to oversee the financial management of the Scheme which most often involves a multiple-million-Rand property value and runs with multi-million Rand annual levy budgets.
The Sectional Title Management Act (STSMA) amendments of 2016 requires Schemes to have Reserve Fund savings for maintenance which should be equal to, or more than 100% of the annual levy contributions. For most Schemes this means it is important to continuously store millions of Rands for a rainy day.
The STSMA amendments also requires Schemes to annually update a 10-year maintenance plan that identifies the property maintenance items, timelines and budgets. Property value is a central concern: The vulnerable state of Reserve Funds savings and the imposition of unplanned steep levy increases and special levies for emergency and costly maintenance undermines confidence in the property and this undermines the property value.
Enhancing the asset value of Reserve fund savings:
+ How the ADVANTAGE fund management support works:
On opening an ADVANTAGE Reserve Fund Account, you will have access to fund support services (T&Cs apply).
Get going with OPENING AN ADVANTAGE RESERVE FUND ACCOUNT
- Financial fitness and compliance assessment of the Body Corporate can be undertaken to assess access to preferential interest rates and to understand your financial standing.
- Financial needs analysis can be done based on annual budgets and 10-year maintenance planning to help Trustees with fund planning and to make key financial decisions.
- Reserve fund investment strategy can be provided to help Trustees with balancing the need for cash availability and increased return on investment of Reserve Funds.
4 - ADVANTAGE PROFESSIONAL PROJECT SUPPORT
Do your Trustees have the necessary time and expertise to oversee the building maintenance projects?
The Advantage Professional Project Support is an advice service provided to Body Corporate clients to assist trustees to manage the property’s necessary improvement and maintenance projects from the inception planning, through loan application and project works.
Property value is a central concern: The accurate assessment of the maintenance and necessary improvements is critical to effective management of the property and retention of property value. Additionally, projects need to be done in compliance with; the Municipal Bylaws, City and National Building Regulations and the Occupational Health and Safety Act.
Most often the improvement and maintenance projects are multi-million Rand ventures. The responsibility and risks are high, and it is important that Trustees of Body Corporates are provided with good advice and the support of experienced built environment professionals.
+ How the ADVANTAGE Professional project support works:
On opening an ADVANTAGE Reserve Fund Account, you will have access various project support services:
Get going with an ADVANTAGE PROJECT LOAN APPLICATION
- Project specific advice about the importance and relevance of appointment of appropriate built environment professional support for your big maintenance and improvements projects.
- Access to preferred professional service providers who can advise on, and manage the planning, pricing and administer the contract for projects as Principal Agent.
- Legal and logistical advice and oversight of the project loan and project approval in Special General Meeting process by the Body Corporate.
- ADVANTAGE oversight of contractual administration of the project cash flow management and approval of progress payments and final completion and close out of the projects.
5 – ADVANTAGE CLIENT BENEFITS
Is your Reserve Fund managed as an appreciating and valued asset for your Body Corporate?
Well run financial and fiduciary affairs of the Body Corporate is good for all concerned. It ensures confidence in the Scheme, that the property value is retained and that risks are reduced. The Advantage range of benefits are offered to Body Corporate clients to encourage good financial planning and reward good Reserve Fund management.
+ How the ADVANTAGE client benefits
On opening and operating a Reserve Fund Account with a balance equal to, or more than the regulated administrative levy fund for the previous 12 months gives you access to the following benefit options (T&Cs apply):
Get going with AN ADVANTAGE RESERVE FUND ACCOUNT AND PROJECT LOAN FACILITY
- Preferential Project Loan Lending Interest Rates
- Access to free professional advice regarding Body Corporate Scheme fiduciary compliance / financial fitness assessment
- Access to free built environment professional service advice and project needs analysis
- Access to Advantage endorsed value-add property improvement installations with preferential purchase and project loan terms and return on investment forecasts.
6 – ADVANTAGE TEAM INTRODUCTION
Brightsky ADVANTAGE brings the diverse skills of key fields of expertise to fit the pieces of this Body Corporate funding puzzle together:
Financial Services, Built Environment, Legal expertise.
+ Introduction to the ADVANTAGE team:
Our financial management partner – Hendrik Bruinette and BRIGHTSKY CAPITAL.
Hendrik Bruinette has over 20 years of experience in the banking sector and property and infrastructure investment. Hendrik has enjoyed an impressive career as CEO of FNB Property Finance, Mettle Property Solutions and as Founding CEO of Brightsky Group, Hendrik has both financed transactions and managed property assets in excess of R5bn.
Brightsky Capital (Pty) Limited, is a South African company and registered as a Category II FSP (license number 46903) and is appointed Fund Manager of Brightsky ADVANTAGE ensuring sound financial management and reporting standards. Brightsky Capital utilizes the banking services of Investec CCM and Nedbank CS.
Hendrik heads up financial investment model and active participant in business development at Brightsky ADVANTAGE.
CLICK HERE TO DOWNLOAD THE BRIGHTSKY ADVANTAGE INTRODUCTION FIND OUT MORE
Our Built Environment Professional partner – Michael Magner from Activate Architecture.
Michael Magner has over 20 years working as Architect, Business Leader and Trustee in Body Corporates. As a founding Director of Activate Architecture, Michael has applied his design thinking approach with extensive experience of property and built environment project implementation challenges and participant in Sectional Title property management in South Africa.
As a member of Brightsky ADVANTAGE team, Michael brings his expertise to the business model development and heads up project and property assessment.