L E G A C Y E X C E L L E N C E – A O G A T S H E N I I N I T I A T I V E

2018 Stokvel Guidelines - Prospectus

BACKGROUND

Property Lifestyle Stokvel is a property Association that is mandated to assist members in purchasing, acquiring land and making investments in property. The Stokvel is founded by oGatsheni Architectural Engineering (PTY) LTD, also referred to, as oGatsheni and shall be administrated by oGatsheni Architectural & Engineering PTY (LTD) who shall form, a structure out of the association members, who shall assist to the decision making of the association. The property club shall also be referred to as an association.

The Property Lifestyle Stokvel will be guided by its constitution, laws, regulations and policies. The constitution will cover the frame work within the Stokvel on how it shall operate; with the Administrator seeing to the day to day operations of the Stokvel. The Property Lifestyle Stokvel laws, policies and constitution shall be reviewed and changes will be made in consultation with members.

The Property Stokvel Administrators primary objective is to help ordinary South Africans achieve financial freedom through property investing and to also assist members to acquire & develop property.

This is achieved by providing the best possible properties, together with innovative planning solutions & wealth protection.

PLS is a property Stokvel- Association structured under oGatsheni as an autonomous body that shall assist in building lasting wealth through property portfolios. We shall assist members to master every phase of a successful property development and investment.

This involves

The professional team assists investors to research, identify, structure, finance, acquire and manage top-performing residential investment properties.

Identifying, acquiring and managing top properties that provide above-average rental income and capital growth yields.

Empower themselves with cutting-edge financial education, tools, resources and a team of property professionals.

We are specialists in providing South African buy-to-let property investments yielding high income for our investors

Our team shall develop strategists that will evaluate a members current position, work out a step-by-step plan, to ensure the

correct property development and wealth. We will also help to find, negotiate, structure and acquire below-market value

properties, either in newly-formed property structures, etc.

We shall work closely with our members to select the right property deals tailored to meet their investment requirements, to help

them achieve their long-term financial objectives.

We have a very clear and detailed due diligence process that we carry out on every new property deal.

oGatsheni and/or its partners will create a deal that will assist the members to design and build a development of their choice.

All the Stokvel/associated business and accounts shall be audited by a Black Auditing and Accounting firm.

As mandated, all investments will be done on the principle of diversion and all assets shall be equally bought. All members per

cluster group will have a say to which area, location will they prefer their property. Properties must be within the range as per

contribution.

When time approaches to register as a co-operate financial institution (CFI), we shall permanently elect a committee as

prescribed by the constitution, with oGatsheni as the Administrator. There shall be a guiding principle policy for properties and

assets which will be purchased. In the interim, the Stokvel- Association shall be legally deemed as a Stokvel social club - saving

status.

Principle contractual agreements shall be a legal binding document that shall be covered with all parties involved. From

registration to purchasing of properties and co-jointly owning of properties to transferring of title deeds, etc.

All Properties shall be developed by oGatsheni Architectural & Engineering and/or its Partners.

Purpose Aims and Objectives

The purpose of the Stokvel – Association is to

empower members with cutting-edge financial

education, tools, resources and a team of property

professionals who will support them in developing a

home and/ or land of their choice and secure an early

retirement through investing in property development

and property; either residential or commercial.

We shall also focus on providing property education,

detailed property research and quality services to our

members.

To give financial freedom in property investment and wealth.

To see members own land or property.

To uplift the previously disadvantaged and excluded societies through land ownership

Distribution of wealth through property investment and wealth.

To Provide property education, workshop and training.

To make the Stokvel – Association self sustainable.

To Promote unity amongst members.

AIMS & OBJECTIVES

MEMBERSHIP (TITLE DEEDS)

To be a member one must be a South African Citizen

Be 18 years & older

Have a solid and stable source of income

To be committed for the stipulated years

Registration Categories (5% of Annual contribution, these are monies for administrational and legal purposes)

Abide by the constitution, policies, laws and regulations of the Stokvel-Association

APPLICATION - REGISTRATION

Completion of the Application form attached with the following documents:

Copy of ID

Proof of address (less than three months old)

Copy of bank statement confirming banking account (not less than three months old)

Proof of address (less than three months old)

On confirmation of application, a letter of acknowledgement will be forwarded to a member. In receipt of the

acknowledgement letter, a member can proceed to make payment of his/her membership-admin fee.

CATEGORIES (A – D)

Category A: R15,000.00

Category B: R10,000.00

Category C: R7,500.00

Category D: R5,500.00

Category E: R3,500.00

** Categories A-E determines the monthly premiums that a member shall pay monthly for a period of 9 years.

To match the value of the 1st property to the 8th property, the premiums are subjected to an increase based

on the inflation percentage or a percentage (%) as decided by the National Property Assembly.

A member shall not be warranted to change his/her category for a period of nine (9) years.

CATEGORIES (GROUP OF 8)

Year 1 =M1

2019/2020 Year 2 =M2

2020/2021

Year 3 =M3

2021/2022

Year 5 =M5

2023/2024

Year 6 =M6

2024/2025

Year 7 =M7

2025/2026

Year 4 = M4

2022/2023

Year = M8

2026/2027

8 YEARS Term (2019 – 2027) – Members will be cluster grouped as guided by the categories,

as per allocation of position, of who shall be the first headset of the property/land however the

land/properties will be co-owned by the group of 8 members.

MEMBERSHIP (REGISTRATION-ADMIN FEE)

Category Amounts

(per month)

Months Annual

(Contribution per Member)

Membership-Admin fee is

calculated

@ 5% per annual fee

A R15,000.00 X 12 R180,000.00 R9,000.00

B R10,000.00 X 12 R120,000.00 R6,000.00

C R7,500.00 X 12 R90,000.00 R4,500.00

D R5,500.00 X 12 R66,000.00 R3,300.00

E R3,500.00 X 12 R42,000.00 R2,100.00

Registration fees/ Administrational fees are at a 5% calculation base, which is based on the total annual contribution. services of a member and administrative

assistance or services shall be based as per admin fee percentage contribution.

MEMBERSHIP (CATERGORIES)

Category Amounts

(per month)

Months Annual

(Contribution per

Member)

A R15,000.00 X 12 180,000.00

B R10,000.00 X 12 120,000.00

C R7,500.00 X 12 90,000.00

D R5,500.00 X 12 66,000.00

E R3,500.00 X 12 42,000.00

Groupings

On the formation of the cluster groups, it is the prerogative of the Administrator (oGatsheni) in grouping and allocating of members as per registration.

no member shall have the right to formation and allocation of cluster group(s).

Grouping is based on “first registration, first served, first placed” RULE.

Groupings will be guided by members information and members shall be grouped as per province and city.

A member has the right to appeal such a decision. A member will need to write and email a letter to the Administrator (oGatsheni). The letter should be titled “cluster group dispute allocation” should he/she feel not properly placed/accommodated.

All grouping shall be as per category registered.

Only special cluster shall have relaxed laws to groupings and allocation.

Cluster - Groups shall have their own representation.

Group of 8 – Category A -D

MEMBERSHIP (CLUSTER GROUPS)

Special Cluster Groupings DR’s - Medical Practitioner

Companies & Businesses

International (diaspora)

Busisani Business Cluster – This Cluster accommodates all members who wish to develop their property and sell

Families or friends

** These Clusters are to accommodate members who wish to be grouped within such special groups to enhance their common

goal in achieving the primary goal as set by the Ultimatum vision of the Stokvel-Association.

CONTRIBUTION PER CLUSTER (RANGE)

Category Amounts

(per month)

Months Annual

(Contribution per

Member)

Group of 8 Annual Contribution

(House Range)

A R15,000.00 X 12 R180,000.00 8 R1,440,000.00

B R10,000.00 X 12 R120,000.00 8 R960,000.00

C R7,500.00 X 12 R90,000.00 8 R720,000.00

D R5,500.00 X 12 R66,000.00 8 R528,000.00

E R3,500.00 X 12 R42,000.00 8 R336,000.00

PROPERTY RANGES

Category A:R1,440,000.00

Category B: R960,000.00

Category C: R720,000.00

Category D:R528,000.00

Category E:R336,000.00

** As per cluster grouping, a member shall develop, acquire land or property as per category range and contribution. All

properties shall be co-owned by the 8 members until the 9th year and on the end of the 9th year, the Cluster- groups shall be

dissolved should they not have any shares in other property schemes. All properties shall be transferred to their rightful owner

as per grouping allocation in position.

****Property ranges as per contribution shall increase based on the premiums increment

GUARANTEE ACCOUNT (INVESTMENT ACCOUNT)

• For the first year (2018) all members premium

payments contributed shall be saved in the Stokvel-

Association account which shall also be referred too,

as an Guarantee – Investment Account. The

Administrator and National Property Working

Committee will be tasked to propose strategies of

making the funds have interests and the Stokvel-

Association making money to be self sustainable.

• Proposals of how the Guarantee account shall be

used will be adopted during the

November/December NATIONAL PROPERTY

ASSEMBLY “AGM”

SERVICES

Services due to the membership

1. Free PROPERTY CONSULTATIONS

2. Discounted PROFESSIONAL FEES

3. Discounted Architectural Plan, developments and services

4. Discounted oGATSHENI turnkey services

5. Discounted building costs and evaluation

6. Assistance in property search and acquiring

7. Discounted legal fees – Admin % to assist a member as per contributing

8. Discounted building costs

9. Pre-launch access to NEW DEVELOPMENTS

10. Discounted TRUST ACCOUNTING FEES

11. Consultations with in-house service providers

• members have exclusive access and FREE consultations with oGatsheni accredited service providers/partners,

including Trust experts, financing strategists, tax specialists, financial advisors, rental agents, as well as estate

agents and property consultants.

12. Property acquisition strategy

• Our specialists will help you with a holistic property strategy and plan; tailor-made to your cash flow, affordability,

current exposure and END goal.

13. Access to list of auction/distressed and below market value properties

• You will get the opportunity to buy properties for up to a % below current market value, and

enjoy oGatsheni exclusive turnkey service of proper due diligence, acquiring, financing and selling. 14. Customized financing strategy

• Our specialists will help you formulate a VERY unique tailor-made financing strategy, property

acquisition strategy that will substantially increase your financing capacity and potential.

SERVICES & BENEFITS

1. Discounted oGatsheni Architectural and Construction services

2. Assistance of oGatsheni/Stokvel Partners and Support Services

3. Shall be assisted with house evaluation

4. Home Value Assistance

5. Assistance in Legal fees

6. A member shall get legal subsidy as per % contribution

7. Consultations with oGatsheni service provider(s).

• members have exclusive access and FREE consultations with oGatsheni and Partners plus accredited service

providers, including trust experts, financing strategists, tax specialists, financial advisors, rental agents, as well as estate

agents and property consultants.

8. New developments Pre-launch access.

• Gain exclusive and first view options to pre-launch opportunities. These properties give members access to the best

properties at the best prices and locations in a particular development. 9. Property Acquisition & Financing Strategy.

• Our specialists will help you with a holistic property strategy and plan tailor-made to your cash flow, affordability, current

exposure and end goal. This includes a unique tailor-made financing strategy that will substantially increase your

financing capacity and potential.

oGATSHENI – PARTNERS(SHIP)

oGatsheni Partners team consists of:

1. Architects

2. Quantity Surveyor

3. Landscapers

4. Builders/Contractors and Trades man

5. Real estates

6. Property Developers

7. Property investment strategists

8. Property management specialists and letting agents

9. Trust attorneys

10. Conveyancing attorneys

11. Financial planners (authorized and accredited financial advisors)

12. Financing strategists

13. Chartered accountants and tax accountants

14. Events and Promotions company

15. Branding and Marketing company & many more

**IN Awarding business to partners a Rotational System shall apply.

(All partners shall be Registered and Approved by the Administrator and/or Executive board and NPWC )

oGATSHENI – PARTNERS(SHIP)SERVICES

1. Work with our expert team

• Our team of experts shall assist and support members.

2. Property and Wealth

• oGatsheni has negotiated for many Client property opportunities below their market value and

shall also continue working with its partners to negotiate on behalf of its members. These rental

properties are in demand and shall provide members with high capital growth. We shall work

closely with our members in selecting the right property deals that are tailored to meet your

investment requirements and help to achieve long-term financial objectives.

3. Legal Team

• Each of our specialized legal teams delivers impeccable service in their own field of law. The

number of experts in each team ensures that it is richly resourced and able to deliver close and

personal services to each property club member. The legal team will assist with the formulation of

a dual trust structure and also act as independent trustee, as required by legislation. Our legal

team offers comprehensive advice on estate planning, the drafting of wills and all aspects of trust

administration.

4. Accounting Team

• Once Members have established the trust set-up it is of utmost importance to appoint a

professional trust accountant to manage the trust's accounting aspects. SARS will require income

tax returns at the end of each financial year. It is important that precise bookkeeping is

executed from the outset, as trust accounts must show all assets held. Accurate and

orderly sets of books will ensure that no doubt exists about the ownership of the trust’s

assets in the event that a member comes under attack from creditors.

6. Conveyancing Attorneys

Our conveyancing (transfer) attorneys offer full support throughout the process of finalizing the transfer of a property

to a member, and closely monitor the conveyancing process from start to finish.

oGatsheni shall negotiate large discounts on conveyancing (transferring) fees for members.

Letting Rentals Agents - Conducting credit checks, drawing up leases, inspections each time a new tenant

vacates, rent collection etc... The admin involved in rental management does not suit all investors, although some

might consider that it would be a good experience to let their properties themselves. oGatsheni cautions investors to

follow this strategy only after due consideration and having conducted extensive research beforehand to gain a full

understanding of the entire process.

oGatsheni believes that members' time is more valuable, and so advises them to leave these very important

functions in the administration of a property portfolio to a capable letting agent who has the necessary resources,

manpower and expertise at hand.

Accounting and Trusts

services:

• Advise clients on all aspects of trust, company and property law;

• Attend to the drafting of Wills;

• Submit annual returns for companies

• Attend to the drafting and lodging of trust registration documents;

• Attend to the drafting and lodging of company registration documents (Private Companies

and NGO’s / PBO’s)

**More oGatsheni & Partner services to be added

PACKAGES – SIX (6) TYPES

1. Buy/Purchase to Occupy Should the receipted choose this option and advise to occupy the property purchased on his/her behalf but co-owned by the

cluster group, he/she will pay rent money (discounted rate) for the period of 9 years to the cluster group, which is also referred

to as RENT TAX (as a member should not pay rent that would be to a market value). A member will have to pay a lower rent

(rent tax). The amount of money (rent tax) shall be determined by the cluster group and approved by the Administrator. The rent

tax shall be equally distributed to all 8 members within the cluster group.

2. Buy/Purchase to Rent out A recipient shall guide his cluster group on his/her intention, should he/she pick this option the members shall seek services to

rent out the place and all rental incomes shall be equally distributed.

3. Build to Sell Should the due recipient go with this option or cluster- group, they shall seek the oGatsheni services as the developer or

Partner services (Administrator approval) to develop such property and then an in-house Estate Agent shall find a buyer. On the

sale of such development the profits made shall be equally distributed to all group members.

4. Build to rent out Should the due receipting go with this option or cluster- group, they shall seek the oGatsheni services as the developer or

Partner services (Administrator approval) to develop such property and then an in-house Estate Agent shall

Find tenants to let. Income Rental fees shall be equally distributed to all group members.

** Levies and rates affairs partaking to guidelines will be released and discussed in the Nov/Dec 2018 National Property Assembly AGM

Build to Occupy Should the due recipient go with this option or cluster- group, they shall seek the oGatsheni services as the developer or Partner

services (Administrator approval) to develop such property. he/she will pay rent money (discounted rate) for the period of 9

years to the cluster group, which is also referred to as TAX RENT (as a member should not pay rent that would be to a market

value), a member will have to pay a lower rent money determined by the cluster group and approved by the Administrator. The

rent tax shall be equally distributed.

Purchase Land to Develop Should a recipient wish to use the funds due to him/her in intention to purchase land, the land shall be co-owned and the

recipient should have a plan for such land within the period of 2 years.

NOTE – No money will assist a member to pay an existing bond or renovate any existing properties. All monies shall

not go to an existing agreement or property registered under the sole member.

SEMINARS , PROPERTY EDUCATION WORKSHOPS

Property Education and Seminars

The Stokvel-Association shall organize seminars, workshops and educational platforms for Property Development and

wealth. Our support team/Leaders shall advise members of upcoming training and educational seminars and resources such

as books, checklists, etc. so you can grow your knowledge and expertise as a professional property investor.

They shall be taught how to successfully, intelligently and profitably invest in property and build a sustainable, tax free

portfolio. Sharing of secrets of the most wealthiest property entrepreneurs and how they acquired multi-million property

portfolios with other people’s money (OPM) and how you can do it too.

We shall equip our members with the necessary tools, knowledge and peace of mind for how cluster group can make

business and make property their retirement savings.

COSTS TO BE COVERED BY A MEMBER/CLUSTER GROUPS

• Rental insurance

• Transfer tax

• Tax expenses

• (other member costs to be covered as per transfer or insurance will be further updated, or added within the next

updated/revised guideline document)

**A member or cluster group shall cover the following costs towards the property.

CLAUSES - LEGAL, TERMS & CONDITIONS

Our membership/administrational fee is 100% risk free. If you're not happy with our Stokvel – Association for any

reason, simply let our friendly support team know (via email) and we will happily refund your money within 30 day

from registration, however after 30 days after registration no money will be refunded.

Monies would be banked with the 903 Prestige Club (Stokvel Club); oGatsheni Architectural as the founder of the Stokvel shall

act as an overseer.

Retrenchment – Incase of retrenchment, a member/benefactor will decide on either to continue or withdraw. On withdrawal, a

75% of his/her contributions will be refunded to the member.

Death - In case of death, the law that governs how a deceases estate is wound up will also govern one as a member; it will be

up to a members last will and testament, if a member has one. If a member does not have a last will and testament, legal

advisors will assist in terms of the next kin. (evidence of death, such as a death certificate should be produced).

Cancellation

** If a member cancels his membership before signing his/her legal bidding contractual agreement contract, he/she shall

be 100% refunded

• I have to notify Stokvel-Association of my intention to cancel, 30 days before cancelling my policy, which entails that a pro-rata

premium could be collected at the next collection date. Scenario: Should I contact Stokvel-Association onto cancel my policy on the

7th of a month, the cancellation will be effective from the 7th of the following month. I therefore will have cover until midnight on the

3rd of the following month.

• Stokvel-Association may cancel my policy by giving me 30 days' notice. Stokvel-Association may give me notice orally, by email,

fax or post to my address noted on my Coversheet.

• Stokvel-Association will cancel my policy with immediate effect should I, anyone covered under my policy or anyone acting on my

behalf fails to comply with Stokvel - Association's reasonable instructions or requests, commit fraud or is found to be dishonest in

any relation.

• If I do not pay my monthly premium for 3 months in a row; my policy will cancel automatically from midnight on the last day for

which premium was actually received.

• My policy will automatically cancel if my annual premium is not paid on the collection date or on the date after the grace period has

lapsed. Refunds in the event of cancellation If a premium has been paid for any period beyond the date of cancellation of an insured

item or this policy, Stokvel-Association will refund 70% of contribution/payments. Any administrative costs, shall also be deducted

NOTE: Other clauses will be covered in the Principle Contractual Agreement Contract, that shall serve as the final legal

binding document of the Stokvel. A member who disputes the document and has paid his/her premiums shall be 100%

refunded, only after the signing of the document will the cancellation and forfeiting clause apply. - Principle Contractual

Agreement Contract to be issued to ONLY registered members.

PAYMENTS

Payments - pay premium

A member will pay every month and no later than the 7th day of a new month.

Members who have not paid membership/registration/admin fee shall not be deemed as members of the Stokvel.

A member MUST NOT MIX his/her registration/administration fee with his/her premiums.

A member MUST NOT MAKE PAYMENT TO ANY PERSON/LEADERSHIP but should directly make payment to the Stokvel account.

A member should always produce a proof of payment at all times. Members should scan and email the proof of payment to the PLS official email address – propertylifestylestokvel@gmail.com.

A member shall have the option to pay once off, quarterly, half-yearly etc.,

A member who fails to pay due to financial issues should write a letter to the Treasures office.

The treasure will grant the member a three months grace period.

Should a member fail to make payment within the grace period he has the option to either seek an extra month grace period or withdraw from the club.

If a member withdraws due to failure to make payment he/she is deemed to lose 30% of his contributions.

Contribution will increase by a percentage based on inflation rate and members shall vote and agree upon the % based on inflation at every National Property Assembly “AGM”

Premiums which is noted and missed, is due and must be paid in advance monthly or annually.

It is upon the member to make arrangements on the method of payments.

Grace period to pay premium

If Stokvel-Association does not receive my premium on the collection date, I will not have any cover for the period for which I did not pay.

I will have 15 days from the collection date to make arrangements for funds to be collected from my chosen bank account, provided that the reason for the non-payment of premium was not as a result of a deliberate act by me. For monthly

policies the grace period will only apply from the second month of cover onwards.

Should I require the premium to be collected from any other bank account I must contact Stokvel-Association before

the start of the third working day before the expiry date of the grace period in order for the transaction to be possible.

During the grace period I will still be covered, on condition that the unpaid premium is paid within the time period.

BANK ACCOUNT

The bank account will temporary be held under 903 Prestige Stokvel Club, a club that has been in existed for

5 years and which banks with Standard bank. It will be a parallel structure to the property lifestyle Stokvel

even though the Property Stokvel is an autonomous body. 903 Prestige Club is a Stokvel that is

Administrated and Chaired by Mhlekazi Andile Siyabonga Ndhlovu who is the Director of oGatsheni

Architectural & Engineering. The property Stokvel shall be mandated within 6 months of operation to open a

Trust Fund/Bank Account (pending). During the process to finalize the Property Stokvel Trust Fund/ Bank

Account; all premium monies will be paid to Standard Bank, 903 Prestige Account - once a Trust Fund / Bank

Account has been opened and is operating, all premium monies will be transferred from 903 Prestige Account

to the Property Lifestyle Stokvel Trust Fund / Bank Account. The account signiturious will be disclosed to all

members.

No Premium money should be paid to the oGatsheni and Architectural account, oGatsheni shall accept the

membership/ registration/administration fees as it will serve as the administrational fees to assist in the daily

operations, administering and functioning of the office. oGatsheni as the Administrator is entrusted with the

functioning of the Stokvel and shall be accountable to the treasure

Registration-Admin fee

Account

Premiums as per Category

Account

Banking Details

Bank Name: FNB

Account Holder/Name: oGatsheni Architectural & Engineering

Account Number: 62701481525

Branch Name: Davenport

Branch Code: 250655

Ref: PLS, Full Name & Date of Birth: e.g. PLS REG Kwela Dladla 13-07-1971

Banking Details

Bank Name: Standard Bank

Account Holder/Name: 903 Prestige Club

Account Number: 056448511

Branch Name: Durban ABC

Branch Code: 040126

Ref: PLS, Full Name & Date of Birth: e.g. PLS PREM Kwela Dladla 13-07-1971

BANK ACCOUNT

CONTACT DETAILS

78 Field 78 Joe Slovo Street Durban 4001 Cellphone 1: 0614852523 Cellphone 2: - Email: Propertylifestylestokvel@gmail.com Email: asgatsheni@gmail.com