We've compiled a list of questions often asked by our investors. If your question is not listed below, feel free to contact us for more information.
Why would anyone join a Consortium?
For many people, owning a (investment) property seems impossible. No matter how hard they try to save. Then not to forget the big upfront deposit that is required together with the funds for the transfer fees and attorney costs. This is why a consortium is so beneficial because it allows you to purchase a property without any huge upfront costs.
Bloemfontein Consortium Group allows you to invest in a real estate in Bloemfontein from only R1,000. You can buy and sell shares whenever you want. With sufficient shares, you can even buy the property from the group - this means that you already know where are you are investing and can one day either own the unit yourself or leave a legacy behind for your children.
Do I own the property?
No ... but it can also become a YES. You buy shares in the company which is used to purchase property in a complex in Langenhovenpark, Bloemfontein. With your shares you are entitled to the rental income generated from the property. For instance, with 1 (one) share you will generate an income of R5.4 per month.
Our shareholder agreement contract clearly stipulates that if a shareholder holds sufficient shares that equals to the value of the property, that shareholder can sell their shares and acquire the property themselves.
What this means (and this is why this consortium is so unique) is that you can start buying shares whenever you want and with sufficient shares you can actually buy the property from the company. The shares can be transferred to your family or children.
Imagine if you can start saving today for a property that you can retire in or own a place where your children can live when they come and study at the UFS or CUT. And the best part is that you don't need to have thousands of rand available to start with your property investment journey.
I heard that investment property can be risky. Why should I invest?
Not with our consortium group. Investment property is only risky when:
You don’t know the suburb where you are investing in
You don’t know the managing agent
If you have to hire a rental agent (potential income lost due to monthly commissions)
The director has identified Langenhovenpark as one of the best suburbs in Bloemfontein. It has four shopping centres within a 2km range. The complex itself is 500 meters away from one of these shopping centres. So the location is prime.
One of the main reasons why investment properties don’t generate the much needed income is because a 3rd party is running the complex (a.k.a. the managing agent). Unlike most complexes, this complex is being managed by the director himself. This means there are no unnecessary levy increases and everything is done in-house. The complex also receives free plumbing services (due to previous business networking). You will not find this in any other complex in Bloemfontein.
Another reason why investors don’t look at property as an investment is due to the fact that they have to appoint a rental agent to take care of all rental agreements and finding new tenants. The cost to a rental agent for one unit at the complex will be about R600 per month.
It’s no wonder that after all these monthly expenses investors don’t want to invest in real estate. But with our consortium group, all of these expenses are taken care of in-house. No commissions at all.
How much money can I earn per month?
This can easily be calculated as our shares are currently priced at R1,000 per share. Unit 10 will be purchased for R700,000 and the transfer fees will be R20,000. Thus, we need R720,000 which equals to 720 shares.
The rental income is R6,100 pm. The net income is R3,900 pm. R3,900 ÷ 720 = R5.40
What is your current savings interest rate with your bank?
Does your initial investment grow each year? (Capital growth)
Does your bank allow you to invest in property from only R1,000?
Does your bank tell you about new property investment opportunities?
How much are you spending on rental agent fees per month?
It's clearly a no-brainer that this elite group is the only way to secure your long term property goals with minimum risk. Together with the right investors, we can ensure passive income (and capital growth) for many years to come.
What about all the paperwork and administration duties?
The worst thing about an investment property is that you have to find a suitable tenant, sign the contract and make sure they pay their rent each month.
This is mainly the reason why property investors make use of a rental agent. They take care of all the administration tasks that goes with having an investment property. Our latest research shows that they charge R600 per month for their services for a unit at the complex.
R600 takes out a huge chunk of your monthly rental income. So what can this consortium group offer me that no one else can?
As mentioned, the director is in charge of finding suitable tenants, signing of the rental agreement and collection of monthly rent.
Hold on a second … so this means if I invest in this consortium, I’ll be a property investor, but have no administration obligation whatsoever? Where do I sign? Take my money!