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FAQs

The following questions are designed to give a broad overview of how the NHSC operates. If we have not answered your question here, please do feel free to contact us!

  • The National Housing Stokvel Company is a for profit, social enterprise(or a business with purpose)… what that basically means is that we are a business that tries to make a profit from solving society’s problems.

No. The NHSC is a PTY (LTD) Company. The word Stokvel in its name does not indicate, a savings scheme it, implies a grouping/ or association i.e. people coming together (or joining forces) to achieve a common objective. The NHSC does not operate a savings scheme, as it does not follow the normal stokvel business model.

The NHSC, encourages any individual, group, or body corporate, regardless of colour, creed or social standing to utilize its Share Option Scheme, in order to achieve its aims and objectives.

The NHSC does the following:

→The “selling” of shares to members, generates its income.

“Selling” is used in inverted commas, as the term barter (exchange) of rand value for shares applies more accurately.

→It then pools the money collectively (hence stokvel) and saves the money with Financial Institutions, it also invest some of the money.

→It also uses a portion of the money for members, who wish to acquire housing.

A dividend, is a percentage of earnings, accrued by shareholders, who owns a particular percentages of shares in a company.

YES!   You are a Preferential shareholder

 They are the group of people, that owns shares in the company, but have no voting rights.

They receive part of the company’s profit, declared as a dividend.

Preferential shareholders benefit, since they are given First privilege in dividends as well as a few other rights.

 No.  At least we think not. The NHSC is not a “get-rich quick scheme”. Although, it should be mentioned that saving is the foundation of long term wealth.

No.  The NHSC had been founded with a vision of uniting South- Africans with a common objective or purpose. We strive to build long term success and wealth and we are not interested in short term profits with horrific long term results.

Yes and No.

 

  • Yes – Any person who wish to withdrew his/her money from the scheme needs to do so in writing.

 No – There is a thirty two day (32 day) waiting period, before you may collect your money.

Firstly, the vision or goal of the NHSC, is to encourage South- Africans to save towards owning their own homes…This is a long-term goal.

Secondly, in order to succeed in its objective, the NHSC needs to encourage perseverance and commitment amongst its members.

No, if you are a member with the NHSC, it does not mean, that you have to use your money for housing only. The NHSC wants to see every South- African as a home- owner and therefore it had created this option.  We would like to see however, that you and other South- Africans do utilize the money to build, buy or renovate your home, but  YOU ARE NOT RESTRICTED IN TERMS OF USE!!

All shares issued by the NHSC is unsecured (meaning – that there is no security {collateral} attached). However the NHSC in Partnership with reputable financial institutions have the following investment strategy:

 

70%  – Low risk investments

20%  – Medium risk investments

10%  – High risk investments

 

Therefore 90% of all investments are placed in low to medium risk investments. This coupled with the fact, that these investments must guarantee capital, makes these investments relatively safe. It is also important to note, that the NHSC do not encourage its members to invest all of their money with us, but in conjunction with sound financial advice to spread their ‘risks’ adequately.

The NHSC is a legal entity. It is registered as a PTY (LTD) company. Transparency and Accountability is very important to our company, as it should be for our members. In order to encourage transparency and Accountability the following measures had been put in place:

Audits:  Internal- Audits to ensure adequate and up to date record keeping, as well as to encourage accountability of staff.

 External- Audits to monitor and evaluate internal systems. To monitor and update (expose) any deficiency   or shortcomings and to ensure corrective action. To ensure accurate and reliable financial records and   statements.

 Financial Reports: Each member shall receive financial reports, indicating the company’s progress and financial position.

 Legal Compliance: The NHSC has gone to great lengths to ensure legal compliance, with all Acts and Statuettes governing the nature of business. It shall always ensure that it complies with the laws governing this country. It had therefore, created a legal department to ensure and monitor compliance.

It is  company policy, that a member should at least have been part of the Share Option Scheme for thirty six months (36) with the NHSC in order to be eligible for a housing loan.

No. If you are a first- time home buyer and you qualify for a subsidy given by Government, (subject to certain conditions/ criteria) you may choose this option or if you have built a ‘reasonable’ deposit to qualify for a housing loan at a commercial bank you may exercise this option as well.

No. This facility is only open to its members.

The criteria is as follows:

  • A South- African citizen or a person with a permanent residency visa.
  • Should have been a member of the NHSC for 36 months.
  • Must be gainfully employed.
  • It is also mandatory that the person take out the NHSC –Credit life policy.
  • A bond (mortgage) should be registered over the property.
  • 18 yrs or older
  • Must be credit clear or arrangements for payment should have been made.
  • It is important to note,  however that no money shall be lent until such time that all outstanding debt had been paid.
  • A person is in default if two consecutive payments ( two months in arrears) if no payment had been made.
  • Maximum repayment term is Fifteen years (15 yrs).

No. It is only due to the fact that, buying a home is a long –term investment (or expense) that we encourage blacklisted members to settle any outstanding amounts first before incurring more debt.

  • The NHSC, needs to protect the interest of the company, your interest and that of other members.
  • Should you default on payment or if you become incapacitated, we will not only settle any amount outstanding owed by you, but will also transfer any money due to you. An important disclaimer is that defaulters receive no benefits as, they forfeit any and all monies due to them.
  • The Credit-life policy had been created to give a basic cover to the NHSC members. Furthermore our credit  life policy has a built in savings component, that should you have successfully amortized your loan, the savings plus interest is paid to you.

Yes.   However, the NHSC encourages members to opt for EFT as opposed to post, but better still You may even decide to have your dividends automatically re- invested.

 (The following illustration is for education purposes only and NO CLAIMS are made)

The dividends are based on a pro-rata calculation. The Board of Directors had decided on the following policy for Preferential shareholders:

 1.The Minimum %  of profits set aside for dividend distribution, shall be 10% of after tax profits.

 2.The Maximum % of profits set aside for dividend distribution, shall be  40% of after tax profits.

This is then divided by the number of shares e.g.

If the company declares an after tax profit of R1000 000.00 and the Board of Directors, had retained a percentage for expansion and/ or settlement of any debts, the following happens if share tally is a 100 000.

 10/1000 000 x 100 000/1=R1.00

Then each debenture receives a dividend of R1.00

 

  • If we assume the board of Directors do not retain any monies for expansion or settlement of debt the following happens:

 20/1000000 x 100 000/1=R2.00

 Then each debenture receives a dividend of R2.00, but let’s say the tally for the debentures is 1000 000 then the following happens:

20/1000 000 x 1000 000/1=R0.20

Therefore each debenture’s dividend is R0.20c.

 This illustration excludes any interest due.

 To answer the second part of the question each shareholder shall receive the company’s financial results.

No. Market conditions change frequently and the size of the dividend is based on the amount of shares issued (afloat) and the final amount, the company has declared as after tax- profit.

No. As previously mentioned all shares issued by the NHSC  is unsecured. There is no security attached to the shares.

Yes, we only accept debit orders as it is much more convenient and much less of a administrative burden. We do not accept any stop orders.

The NHSC had created a Reserve Fund, to safeguard itself against any large withdrawals from its members. It had also created certain credit facilities to ensure, that it will always be in a position to pay its members.

The NHSC is a web based company. We prefer to do everything online, however if you do not have Internet give our contact centre a call or write to us via snail mail.

Yes, we do.  Due to the proliferation of people with devious intent and to safeguard you, the NHSC advises the following:

All are agents are on our Facebook group…

They will have properly identification and shall not ask you for any CASH whatsoever.

It is your money and therefore your RESPONSIBILITY to verify all claims made by any member of the public.

Yes. Each member has his/her own unique reference number, to ensure accurate records  and prompt service. It is important to quote this number if you

(a) make a payment

(b) Query anything telephonically

(c) Put pen to paper

  • Due to the large number of members, it is impossible for the NHSC to give you, the quality service you deserve without this reference number.
  • This number ensures that your particulars are correctly updated and that your records are kept up to date. This ref. number verifies you on our database and ensures that no errors are made in regards to records and personal information.

Please call our call – centre immediately and allow us to update your personal particulars.

No. this is your unique reference number and should preferably, only be used by yourself.

We sincerely hope and pray this situation does not befall any of our members, however should this occur please do the following:

 

If you have a Debit order- Please notify your bank and the NHSC immediately. Upon your written request we shall immediately stop with any deductions.

If you do not have any  debit orders, do not worry as long as you keep your shares, you are entitled to the dividends and interest the company pays out regularly.

Yes, the old adage (Cliché) says “Nothing ventured, nothing gained”. There is always an element of risk we human beings Endeavour. Unfortunately the NHSC cannot predict market conditions and future political turmoil. We have taken a conscious decision not to be deterred by this and to pursue our aims, hopes and dreams.

Our criteria are simple and basic.

 

  1. A South- African citizen or a person with an permanent residency visa.
  2. Bar- coded Identity Document or Passport and Visa number (Certified copy)
  3. Must be older than 18 yrs
  4. Must have proof of residency ( a telephone/ municipal/or any other account)
  5. Sworn police affidavit, if you have no accounts
  6. Completed application form
  7. Lastly a desire to see yourself and other South- African citizens in their own homes.

We live in a democracy, and it is your right based on an informed choice to do so. We would like to thank you, however for taking the time to ponder about what we had to say. We sincerely hope and trust that you shall be blessed and that you shall realize all your hopes, dreams and aspirations.

 

Once more thank you, for taking the time in visiting our website.

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