Co-Own a Building With Us

People that want to co-own a building with us are people that want to earn a passive income but are also interested to make their initial investment grow over time.   These are people that have a long term view on property and want to invest for the long term, typically more than 10 years.  When you co-own a building with us you will own shares in a property that owns the building, this means that you will now receive your share in the rental income as well as your share in the increase of the value of the property.

Process to co-own a property

  1. Send us a mail to info@m5propertyaddicts.com with the following information
    • Name, Surname, telephone number
    • How many shares you would like to buy
  2. We will send you
    • a confirmation email that your shares have been reserved
    • A pre-agreement – this agreement is to govern your money while it is in the attorney’s trust account.
  3. You need to send us your FICA documentation and sign the pre-agreement and pay the money into the attorney trust account
    • As soon as we have raised enough money to conclude the deal we will send you the company and shareholders paperwork to sign
  4. You sign the paperwork
  5. We send you your share certificate
  6. Money is released by the attorney to the seller
  7. Property is registered
  8. First payment to you will be the first month after registration and then every three months thereafter

FREQUENTLY ASKED QUESTIONS

Your money will be in the property for as long as we own the property. Depending on the specific deal we will put a bond on the property, at the right time to get the most bank finance, and then some or all of the money could be released.

You can sell your shares after 24 months. The process to do this will be in the shareholders document.

You can buy as many shares as you want. There is a limited amount available to purchase though so when you indicate how many you would like we will confirm that the amount is still available.

As the property is owned in a company, if something had to happen to M5 Property Addicts a new property manager could simply be appointed. There would be no impact on the shareholders or the properties.

  • While your money is in the attorney’s trust account it is insured. So you could claim the money back from insurance should it be embezzled.
  • When your money is released out of the attorney’s trust account it is backed by the property and the acts that govern companies and properties in South Africa.
  • The agreement that governs investor’s shares allows for the payout of investors before M5 Property Addicts. So you will always get your money first before we are allowed to take any profits.

The property is purchased in a company specifically created for this property. IT is the only asset in the company. You own shares in company that owns the property and therefore you own part of the property.

Your ROI grows every year as rent increases as well as from the profit of the sale of property should it be sold 10 - 20 years from now.

We can also get a bond on the property in a couple of year’s time which releases cash to buy another property without you contributing any more money.

The estimated return for the first year is 8 to 10% which grows over time according to the above parameters.

The first return will be paid out within one month of the property registering in the company’s name. Thereafter it will be paid out every 3 months.

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