The demand for property has created a new vibrant market for property stokvels to flourish and grow in a space usually dominated by banks who give out house bonds.
For many years, large numbers of South Africans have come together to join savings and create wealth through stokvels.
The phenomenon dates back to the apartheid era when black people were denied access to the formal banking sector. During that challenging time, stokvels served as an alternative means of saving. They continue to fulfill this purpose today.
In the year 2020, the National Stokvel Association of SA recorded a total of 11,5m stokvel members in the country who collectively saved an estimated R50bn. Today, the multibillion rand industry continues to grow and stokvels can be found in all shapes, sectors and sizes.
One such example is Sakhisizwe Property Stokvel, which was established in June 2019 and has become one the top-performing stokvels and is growing rapidly, enabling members to invest in high-yield properties in order to receive returns on those investments.
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“What attracted me to this particular stokvel was the money. I love money. And Sakhisizwe, at that point in time, was the only available mechanism that attracted a lot of interest for my money,” said Motlalepula Moretsi, who joined the stokvel in January 2020 upon uncovering that her interest at Sakhisizwe would be significantly more than what she normally received when saving her money in the bank.
Although it has only been two years, Moretsi’s journey as a member of the stokvel has been one filled with much learning and unlearning.
“Through the stokvel, I learnt that property investment does not require a lot of money as we were formerly led to believe. So being a member just changed my perception on the whole property investment thing.”
Viewing Sakhisizwe as an empire of multiple properties made possible by collective effort, Moretsi believes it is a demonstration of the power of unity and teamwork in action.
“Alone we can only do so much, but together we can do far better,” she said.
Through the stokvel, I learnt that property investment does not require a lot of money as we were formerly led to believe. So being a member just changed my perception on the whole property investment thing.
Indeed, it was for this achievement of collective excellence that the stokvel was established. “We really wanted to just invest and create wealth using property as an asset class. We use an app called StokFella and so that really makes it accessible to anyone who has access to data. You can download the app or go on the website and create a profile, and then join our group and start contributing,” said Silindile Leseyane, who is the stokvel’s chairperson.
Sakhisizwe, which connotes with the building of a nation, primarily consists of two types of investments. Known as "Owner’s Club", the first type of investment allows members to put money together and purchase a particular property for the purpose of gaining rental income. This way, members also benefit from the appreciation of that property.
The second type of investment provides funding for other investors, enabling members to benefit through interest. Moreover, the stokvel is established on a three-part mandate.
“The one mandate is where we obviously want to participate in the wealth creation benefits of investing in property. Secondly, it is to educate our members around personal finance and investment,” explained Leseyane.
“And then the third mandate is to enable members to create their own wealth in such a way that they can start their own property portfolio," he added.
The fast-growing property stokvel has served as a pioneer for many in the stokvel industry through its unique property investment model.
"Other stokvels consult us all the time about how they can replicate our model and do what we are doing in different sectors such as franchising or building hotels and lodges,” said Leseyane.
Throughout its journey, Sakhisizwe has experienced a fair share of challenges and successes. Going forward, the stokvel aims to see continued growth and innovation while also contributing towards building generational wealth. Additionally, the growing group of members is committed to cultivating financial excellence among ordinary South Africans.
FACT BOX
Taking Stok! – Sakhisizwe Property Stokvel
Established: June 2019
Members: 300
Worth: An excess of R15m
Successes: Winning the 2019 SA Property Investor of the Year Award
Challenges: Covid-19 pandemic – some members were not able to contribute due to financial constraints
Red Flags and advice from Sakhisizwe on what to look out for when joining any stokvel:
- If it’s too good to be true, be worried.
- If there’s undue pressure or a certain sense of urgency, it may be a scam.
- Be wary of faceless and nameless individuals. Do not be convinced by a page or website when you haven’t seen the people behind it.
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