How to invest in property without any minimum entry amount using Easy Properties from Easy Equities.

Easy as ABC [THREAD].

Firstly Easy Properties is not a REIT system as many people thought it will be for no good reason.

So basically from my understanding, Easy Properties is a fractional ownership investment platform (basically funcy way of saying crowdfunding) that allows individuals to enter the property market without having to worry about high cost.

So what happens is that Easy Properties will negotiate a property at an entry-level which is as cheap as possible and through Easy Properties create a company which will allocate an amount of shares to each investor which for now is R1 per share for all properties.

After the amount needed to buy the actual property is reached, Easy Properties will go and buy that actual property for all the investors.

So basically you can invest in a property in Cape Town from as little as R1(it is an example don't kill me for it) and you don't have to worry about all the fees and maintenance costs plus stress of rent collection.

Via the Easy Properties platform which in inside the Easy Equities website and App you can be able to get most of the information you need for each property including the performance of the whole location which the property is located.

According to the Easy Properties' CEO the platform will focus on residential property only.

With Easy Properties you earn money in two ways, firstly it is through dividends which are paid quarterly and secondly through you selling your Easy Properties shares in an Auction which will happen under the platform on a specific period(not fully understanding it too)

But it is important to note that putting your money via the platform does not mean you have shares in the property as of that time unlike the JSE shares system.

The platform first needs to meet its target goal amount in order to kickstart the process of acquiring the property. If it does not meet that target amount all investors will be refunded back thier money (crowdfunding type of vibe).

Also it is important to understand that the target amount raised via the platform is 70% of the real price of the property while the 30% will be mortgages.

Also Easy Properties will hold 15% of the Rental income as security for unforeseen expenses for each property. This 15% will not be declared for dividends to all the investors.

Thank you for making it this far.

My mind is frozen. I read in English and process information in Siswati(my home language) and write in English again.

Net Rental Yield(money likely (key word) to earn on your investment each year) is not the same for all Properties but the lowest I have seen is around 5% and the highest is 10.35%.

Check out this article:  https://www.businessinsider.co.za/shares-in-building-uber-fleet-fractional-ownership-scheme-easy-equities-2020-2

In terms of tax when investing in Easy Properties you will pay dividend withholding tax and the company will also pay company tax as big daddy SARS needs to eat. 

Watch the Easy Properties: 

Easy Property FAQ:  https://support.easyproperties.co.za/support/home 

You can find your Easy Properties platform via Easy Equities and to deposit money you can transfer from your Easy Equities ZAR account to Easy Properties or do an EFT payments.

Watch this video for a simple understand:  https://www.easyequities.co.za/easyproperties 

Always before investing your hard-earned money it is better you do your research and if not sure you speak to a professional in the property game about the terms and functions of Easy Properties.

The property market is not currently doing well and even residential property (mostly high end) has taken a a beating.

And Yes property is not an assets which always appreciate in value it can depreciate too.

Reminder: My content is base on my knowledge and understanding. It does not serve as financial advice. It is only for educational purposes.

For any financial advice speak to a registered advisor with FSCA.

Easy Properties can/is a nice way to diversify your investment into many different industries and types of investments to spread your risks.

You can look at it as a long term investment for 5 to 10 years.

Remember to follow me for more informationtive content. I am @IvynSambo