The Pros and Cons Of Property Stokvels | Online Stokvel Websites Developments With Free Mobile App
The Pros and Cons Of Property Stokvel | Online Stokvel Websites Developments With Free Mobile App
Property Stokvel have becoming increasingly popular. The recently released Old Mutual Savings and Investment Monitor 2019 reveals that a Stokvel included in its survey reported collecting R24 million a year from more than 550 members.
Lynette Nicholson, head of research at Old Mutual, says it is not uncommon for members to contribute around R2 500 a month. “A group with 100 members can easily reach an annual investment of R3 million and a group of 30 can accumulate R900 000 a year off relatively modest monthly contributions,” she says.
For many South Africans, the idea of owning property is a distant dream. In a country with such a big inequality gap, some fraudsters are luring people into ‘property stokvels’ that are nothing more than elaborate scams
What You Should Look For In A Property Stokvel:
- A stokvel should have a constitution outlining in clear language the rules of the stokvel, where member funds go, and how they will be redistributed.
- Stokvels should have a leadership structure that outlines who the chairperson and treasurer are, as well as the purpose of the stokvel.
- There should be regular meetings where members can ask questions and receive feedback.
- Ask the person running the stokvel where your money will be invested and how the stokvel can prove to you that it is invested.
- Ask how you will be able to keep track of your contributions.
- Make sure that you will get a monthly statement and that the contribution structure is transparent – in other words, will you be able to see exactly where your money is going?
- Ask what happens should a member fail to pay.
- Finally, find out upfront what recourse you have should the scheme collapse – how will you get your money back?
Property Stokvel schemes are everywhere on social media, and all of them require you to attend some sort of presentation or join a WhatsApp group where registration fees are charged.
