Real Estate Investor October 2021 | Page 8

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Q

I am enticed by the idea of investing in property Stokvels what does this entail ?

A

Stokvel is a savings or

A investment society to which members can voluntarily join and regularly contribute an agreed amount and from which they receive a lump sum payment or in recent times can venture into investments as a collective .

It is very important that you are able to answer the following questions before parting your hard-earned money and joining any stokvel :

1

Stokvel Membership
Some stokvels dictate that you play an active role with your time and skill – I personally like these and some require you to pay a joining fee and monthly administration fee .

2

Legality
Is there a constitution document that governs the members and those in the office of what they should do and not do ?

3

What Does the Stokvel Stand for ?? M
Many stokvels stand for different things and does the vision and mission speak
4 OCT 2021 SA Real Estate Investor Magazine
TAURAI JACK M5 Property Addicts
to you as person and are you happy to stand for the same ?

4

When do we Get Paid and How Often ?
Remember the key reason for joining the stokvel was to invest , for every investment there has to be profit or a return on investment ( ROI ).

5

Leadership & Track Record
Investments can be tricky but with the right leadership and experienced leadership a stokvel can thrive in all seasons .
Above all look for a stokvel that communicates regularly with you in good times and bad times . The more you will know the better you will be at ease with your investment .