Property Flash


EasyProperties, an offshoot of EasyEquities, was launched in July 2020 to much fanfare as South Africans were attracted to the opportunity to own portions of physical assets. As it approaches two years of age, it has gained traction as people have appreciated that the best strategy against risk is diversification.

For years, many South Africans have not understood the value of retail investing. They haven’t bought shares in equities directly themselves but have rather left this to asset managers who have invested their pensions. Beyond this they have paid off bonds to buy homes, processes which have taken years.

While investing in stocks may not always beat money market instruments, it’s clear that having options of varied asset types to invest in gives an individual an opportunity to develop and maintain wealth.

But to get these people on board, financial literacy needs to improve tremendously. It and the attached wealth creation will be essential to the growth and development of SA.

Enter EasyEquities which enables anybody that passes certain basic banking checks to buy whole or portions of shares in companies across the JSE as well as international stock exchanges. A few years ago, it was unthinkable that a 20-year-old South African student could buy a stake in a Tesla share. At the time of writing, a Tesla share cost $658.98 or R10347.40, plus fees.

Now, EasyProperties has a similar mission. It wants to help people progress in their lives by giving them access to bricks and mortar properties. They don’t have to throw millions of Rand at a property but can still get on the property ladder.

EasyProperties creates a company for each property which it buys, including commercial and residential properties, and then gives users on the platform shares in that company. As an investor, you can buy shares in a few different properties or just one. These properties are then managed by professional rental managers.

Investors then earn monthly income through dividends which are paid out of rental collections. Investors also have the option to sell their shares on the platform to other community members. Another key aspect is that EasyProperties provides information about each property including rent per square metre and IRR yields. When an actual building is sold, the profit made is then shared back with investors.

Alistair Anderson

Leave a Reply

Your email address will not be published. Required fields are marked *