You and friends can become property moguls: Watch young woman explain how

Ujuh Reporter

A video of a young South African woman calling for ordinary people to club together to create a collectivised property empire has gone viral. Her idea is simplified but can be somewhat compared to well established investment investment pools and financial cooperatives.

She is advocating for people to create what she calls property stokvels. Monthly contributions of R2 500 per member in a club of 20 people would collect R600 000 in one year. This means the group can buy an average townhouse every year would have 20 townhouses by year 20. This is before accounting for rental income and capital appreciation effect. Gearing up the portfolio can also work magic.

These views can be treated as part of a growing movement where ordinary people choose to club together and search for new wealth creation avenues, effectively boycotting the mainstream savings and investment platforms.

The trend can be partly seen through the growing financial cooperative movement. Obviously this path comes with its own risk and mainly the danger of being caught by scammers and pyramid schemes.

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