Building wealth involves more than just saving – it involves making your money work for you so that you don’t have to. One of the best ways to do this is to accrue assets such as property that will grow in value over time and beat the rising costs of inflation. If buying your own property feels like a goal that is too big to achieve, one of the ways you can make it happen is through the group buying power of a property stokvel.
1. The Power to Purchase
This will give you as an individual, access to collective funds to purchase a property whereas on your own, you may never have managed to save sufficient funds to pay for a deposit on a bond.
2. Access to Knowledge and Information
Perhaps you lack the know-how to get into the property market and feel daunted by the process or perhaps as an individual you have been declined by the banks? Joining a property stokvel will give you access to the knowledge and expertise of members who can help you overcome these challenges. A great example of this is the Rustenburg Property Investment stokvel chaired by Lebo Ratema which has grown to over 90 members strong and which purchased its first 5.8 hectares of land earlier this year. Ratema explains in her interview by Xolile Mtshazo for Sunday World: “As an investor I have the information and the data. I then talked around most of my friends and people that I knew were interested to put our heads together and create wealth.
Each member holds 100 shares sold to them.
Every member has a choice of three investment options. The first option is over three years, the second over four and the last over five years. If you opt to invest over a three-year period you contribute R5,500 monthly, over four years R4,125 and over five years R3,300. We have different voluntary contribution and payment plans to suit every member to be able to purchase shares. This is not a one-man initiative. I must emphasise that we have a 10-member-strong committee in charge of running the whole project. All of them have signing powers.”
3. A Share in the Profits
You will be able to share in the profits that the property gains over time, whether from rental income or from a sale or both. Bear in mind though, that there are also associated costs to both buying and renting a property. We will cover this in more detail in future to help you be better prepared before making a property purchase.
With StokFella, your property stokvel will grow from strength to strength during its investment period through greater trust and transparency with no monthly service fees and minimum balance required for our highest interest. How? You ask. The answer is simple: by transacting on the StokFella platform together with other stokvels, you are getting a high collective interest from as little as R1.00 unlike other existing club accounts that require you to have R100,000 or more as a single stokvel to qualify for their highest interest. Now that’s #WealthBuildingMadeSimple the stokvel way.
Read more about Lebo Ratema’s property stokvel here.