Property stokvels exposed: The promise and the pitfalls

Property stokvels have been generating significant buzz with their promises of high returns, coupled with lively social media campaigns that draw in eager investors. But what happens when the reality doesn’t meet these lofty expectations? Mdntv’s latest expose dives deep into the world of property stokvels, uncovering the frustrations, disappointments, and challenges faced by members of these investment groups.

The oGatsheni Property Stokvel serves as a cautionary tale for many. Members of this stokvel have voiced their frustrations and disappointments after the returns they were promised failed to materialise. Their stories reveal a disturbing pattern of being unable to reach the individuals managing the stokvel, often being sent from pillar to post with no clear resolution in sight.

As debates around the viability and trustworthiness of property stokvels heat up, Mdntv brings you critical insights from industry experts who weigh in on these issues. Andrew Lukhele of NASASA offers crucial advice on navigating the complexities of failing property stokvels. He suggests that some of these groups should be structured as private companies to avoid the challenges they currently face. Lukhele also stresses the importance of having a solid constitution in place—something members can use to legally hold their stokvel accountable when things go awry.

In contrast, Silindile Leseyane, founder of Sakhisizwe Stokvel Property, shares her perspective on what it takes to run a successful property stokvel. Transparency and accountability, she argues, are key elements that have allowed Sakhisizwe to thrive where others have faltered. By ensuring that members are always in the loop and that all actions are accountable, Sakhisizwe has managed to build trust and deliver on its promises.

In this expose, we peel back the layers of hype to reveal the hard truths about property stokvels. Whether you’re already a member or thinking about joining, understanding the potential pitfalls and learning from the experiences of others could be the difference between success and disappointment.

Stay informed, stay cautious, and most importantly - know what you’re getting into.