Meet Property Stokvel Investment Club, A Cheaper Way For Young People To Own Property

Investing in and buying property is becoming an expensive commodity in South Africa. With ever increasing bond and home loan interest rates, many people are struggling to buy homes and commercial property. However, Property Stokvel Investment Club is trying to make owning property for black South Africans more easier and accessible. The Daily Vox spoke to one of the head recruiters, Calvin Mabena, to find out how the stokvel works.

The purpose of the stokvel was created to help young individuals who are permanently working or generating a sustainable income every month. The stokvel was started in 2018 by business entrepreneur Nicolas Manyike, and there are two phases or levels one can join. There is phase one, where an individual can contribute R2 100 for two years. After the desired goal has been reached, the stokvel then buys a property that will generate an income for us.  Phase two is where members buy each other houses as soon as the goal of phase one is reached. The mandate is to liberate people from buying bonds for 20 years or more. Instead, we want to invest in property whereby at the end of the period agreed upon, people will be taking profit and with that profit you will be able to purchase property.

If you take out a bond for instance, you are looking at paying an amount of maybe R8 000 per month and R10 000 per month for 20 years. However, with us for instance, if we have a pool of 30 people who would be contributing R15 000 every month, then that means we are able to purchase a bond of R450 000 cash every month. So that means in 30 months, we can purchase properties without any debts whatsoever. From the R2 100 contributed every month, a hundred rands will taken off towards administration and maintenance, such as office cost, and legal fees when we are about to buy a franchise, properties, or land.

We encourage anyone to join the stokvel, even those who are blacklisted can join. There are currently thirty members and the stokvel is planning on having a group of a hundred in every province .

Anyone from any province can join. New members are required to make a once off non-refundable payment of R250 and submit a proof of payment together with the application form.  Stokvels are a way so we as black people can empower each other. We want black people to own more than one property and in most cases, you are not able to when you take out a bond because of the payment period. The long-term plan for the business is to invest and diversify into agriculture, logistics and other profitable industries.

To find out more about the Property Stokvel Investment Club, you can contact the founder, Nicolas Manyike on 071 234 6701.

The interview has been edited for brevity and clarity.

Editor’s note: The number of phases and cost have been changed to accurately reflect the current structure of the Property Stokvel Investment Club. Some information was added and ommitted after consultation with the founder.

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