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Own Your Share in a Dream Neighbourgood Location

Property investment in modern living and working spaces in lifestyle cities like Cape Town from R100k once off or R2900 per month on our payment plan. Book a call with our investment team to find out more...

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Invest in Your Future with Neighbourgood Co-ownership

As part of our Co-ownership community, we provide you with a unique opportunity to invest in properties in Cape Town (and soon, other lifestyle cities). Neighbourgood Co-ownership is a fractional investment product that offers investors the opportunity to acquire a share in our growing network of Neighbourgood branded co-living and working spaces. Our team identifies, procures, renovates, and manages a curated collection of turnkey lifestyle spaces designed for digital nomads and remote workers. We are offering our community the opportunity to invest alongside us as we build the next chapter of our growth journey with you as our partner.

Benefits of Co-ownership with Neighbourgood

We offer attractive inflation-beating returns of 8%+ annually, making your investment a smart financial decision. We provide a fully turnkey experience, where we take care of everything from sourcing the property to managing it. Our variable operating model offers flexible short, medium, and long-stay options for your convenience. We have an engaged community and extensive network of digital nomads and remote workers, making our coliving spaces a vibrant and social experience. We are specialists in coliving accommodation, so you can be assured that you're investing in a focused and expert team. Our properties are located in Neighbourgood locations that offer citywide amenities like access to co-working spaces, events, and activations.

Hybrid, flexible stays

Contemporary furnishings

Exceptional amenities

Wi-Fi & Smart TV’s

Regular cleaning

All-inclusive of utilities

Built-in community

Technology enabled

Our Investment Process

1
Enquiry

Submit your interest via our short online registration form.

2
Webinar

Attend our online webinar, chat and Q&A session with a member of the Neighbourgood team.

3
Create Your
Investment
Profile

Sign up on our investment portal to create your investment profile.

Optional: 1-on-1 virtual call with the Neighbourgood team.

4
Choose Your
Property

Select which Neighbourgood location you want to invest into.

Review the detailed investment prospectus and other important details.

5
Contract

Sign the online digital agreement on our dedicated investment site.

6
Payment &
Transfer

On receipt of the investment amount, take ownership of your shares in the property. You now own a share in a dream Neighbourgood location!

Ready to invest?

You might be wondering…

Is there a minimum investment?
Our minimum investment is currently R100,000 / $5500 USD / Euro 5000.
How long do I invest for?

The initial investment term is 5 - 15 years.

Our minimum investment term is 5 years.

What returns can I expect?
Our model leverages the best of short and medium-stay rentals, and so we target a net yield of 8.5+% per annum where traditional residential investment generally returns between 4-6%. Our target internal rate of return (IRR) over the investment term is around 15-22%. The returns are a blend of both operating net income growth and capital appreciation over the investment period.
How do you determine whether a property is suitable for a Neighbourgood location?
We have developed a strict site selection process and conduct a due diligence and feasibility into each property with our team of industry professionals. We currently only transact on between 2-3% of all properties we assess.
How can I be sure my investment will meet its return?
While we cannot offer any guarantees over the performance of the properties due to their reliance on ever-fluctuating future market conditions and forward looking statements, we can provide comfort in demonstrating our historical performance to date using our own capital into our existing properties, with our locations having met their projections.
How does Neighbourgood make money?
All fees are fully transparent. A detailed fee table and breakdown of
all fees for each property is disclosed in the investment prospectus.
These include development fees, management fees, procurement fees,
incentive fees and administration fees. Neighbourgood does not provide
investment advice and therefore does not charge advice fees.

Neighbourgood earns the following fees:

Development Fee (One Time)
This is the fee Neighbourgood charges for our work involved with
sourcing, vetting and managing the renovation to the property to pivot
the property to a Neighbourgood location ready for investment. This
includes project management and design services for the renovation or
fit out. This fee also includes any cost for financing or holding the
property while we prepare it for investment. This is a one-time fee
included in the investment amount and share price listed. The
development fee for each property is listed in the prospectus for each
property offering.

The fee ranges as follows:
5-15% of total acquisition cost for properties where there is less
development risk.
20-30% of total acquisition cost for properties where there is
development risk attached.
Development risk is for properties that require more extensive
renovation, rezoning or larger scale development. The lower the risk and
intervention to turn the property around, the lower the fee.

Management Fee (Monthly):
We collect a market related property management fee of between 15-20% of
gross revenue that a property generates over the lifetime of a
property’s operations. Exact fees for each property will be included
on the prospectus for each property. The management fee % is derived
based on the scale of each property and its management intensity. This
fee is paid out of the income from the property each month. This fee
covers services such as the following:
Financial management - overseeing financial accounting, investor portal
management, reporting, payment of all property expenses and taxes and
collecting revenue.

Operational management - including guest relations and reservations,
repair management and all other day to day operational management
requirements.
Revenue management - marketing and advertising, rate optimisation,
booking engine optimisation.

Asset Management Incentive Fee (End of the Investment Term) This fee is
only payable at the end of the minimum investment term. We collect 20%
of the portion of the total return that exceeds the investment’s
benchmark return over the period of the investment. This fee is only
payable where the blended return exceeds the benchmark as an
overperformance. In the event the investment does not outperform the
benchmark, no performance fees will be payable.
How do you determine a property's revenue and operating costs?
We make use of industry-recognised specialised data tools to analyse accommodation demand and historic actual performance, including the benchmarking of room rates and occupancy, to determine the required revenue per available room along with our own proven operating model to predict expenses and operational capacity required to deliver NOI that supports the investment value.
How do you determine the share price?
When you browse Neighbourgood listings, the sale price reflects the cost to purchase your share of ownership in the property. If you want more ownership, multiply that price by the number of shares you wish to purchase, up to 20% ownership of the property.

We determine the sale price of a share by adding these costs:

  • - Property purchase price
  • - Home upgrades and completion and our Development fee. This one-time Development fee covers the entire development management process from A to Z, including sourcing, procuring and redeveloping the property we acquire, as well as buyer aggregation (finding and vetting qualified owners) and limited company formation (including legal fees).

What if I want to sell my share?
After the minimum investment term you may sell your share on the open market.
When would Neighbourgood sell the property?
We constantly monitor a property’s value and the market conditions to determine the ideal time to sell the property and pay out the distributions to all investors. While property is normally a longer term investment (5-15 years), there may be reasons why a property will be sold earlier when there is an opportunity for investors to realise a preferred earlier return.
How do you value my share in the property?
Each year we appoint external valuers who determine the value of the property, which is proportional to your share of the holding company. For example, if the value of the property is R20m and if you have a 1/8th share, the value of your share will be R2.5m.
What if all investors want to sell the property or no longer operate it as a Neighbourgood location?
If more than 75% of the shareholding investors vote to sell the property, it will be valued and sold on the open market and all proceeds after the settlement of any remaining debt paid out to the shareholders invested into the property.
While the property is being prepared for investment, does my money attract any interest?
Yes we place the funds in an interest bearing account until the funds are required for the property transaction. If for whatever reason the property transaction doesn't go ahead all monies invested plus the interest accrued will be refunded to the investor.

What are you waiting for?

Seize the opportunity and invest in Neighbourgood Co-ownership now.

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