So you’ve heard the buzz around property stokvels and are keen to learn more and perhaps even start one of your own? While it is a hot topic at the moment and a secure way to pave the road to a healthy financial future, there are a number of questions that come into play regarding property stokvels that you might want to consider before you get started.
1. Besides the obvious which are the basics required to start any stokvel, including:
- Starting with a circle of people you know well and trust so as to avoid being scammed and selecting a trustworthy committee for your stokvel;
- Setting realistic goals for what you want to achieve financially with your stokvel with a solid constitution to govern your stokvel and an efficient way to keep records and maintain transparency among members.
2. You will also need to think about aspects of your property stokvel such as:
- How will expenses such as rates and taxes on the property be covered?
- Will a portion of the members’ monthly contributions be allocated to pay for the municipal rates and if so, how much?
- When paying for transfer costs on a property, will members pay a lump sum upfront as part of a joining or contribution fee?
- Should the property be rented out, how will the rental income to the stokvel members be calculated?
Many of the answers to these questions need careful consideration before you begin. StokFella is your trusted partner in assisting with managing some of these elements for you.
For example, did you know StokFella is a licensed Financial Services Provider and can assist you with elements of planning including templates and advice on creating a good constitution. We can also provide you with FREE tools to manage record keeping and administration all with ease on your mobile phone so that every member of your stokvel club is kept up to date on meeting details, payments received, payments due, goals achieved and much more. Together we stand for #WealthBuildingMadeSimple… #ItsNeverTooLate – why not start today?