Ian Meyer, who owns a major shareholding in the company responsible for the R3bn Leloko development at Hartebeespoort Dam and also outrightly owns Project Law Prop, is pioneering the bartering concept in South Africa, and the website is his brainchild. The site is for the exchange of any asset for any other asset of equal value. It has two sections – one for general bartering, and one where owners of land can indicate that they would like to swop it for developed, serviced land in Leloko Eco-Estate.

Meyer explains: “This is where you can swop your flat in Gordon’s Bay for a Mini Cooper Convertible, if you find a party with the asset that you want, and they want yours. On this unique platform, that has no competitors, you have freedom to exchange any asset to the equal value of any other asset. Only a nominal listing fee is charged, as opposed to the up to 10% agent’s commission. A panel of legal and valuation experts are available to ensure a seamless exchange. There will be significant advertising and promotion of the site to promote your deal, and you have a minimum of 60 days’ global exposure of your asset.”

The two options for bartering on the site are as follows:
• Leloko bartering: Where you may barter your piece of land for the equivalent value of developed and serviced land (plots or residential apartments) in Leloko. If you desire cash, the Leloko sales team can place some or all of your new acquisitions on the market for sale.
• General bartering: You pay a fee (depending on the value of your exchange) to have your ad placed on the website.  For example, assets between R5000 - R50 000 will cost R1250, assets between R50 000 – R500 000 will pay R2000. 

There is a list of independent evaluators should you wish to have your asset evaluated for a fee, and legal consultants are also available for a fee to ensure the transaction runs smoothly.

How did Meyer come up with the idea? He explains: “As a developer we always have serviced land/stands at our disposal - this is the currency we trade in. That is where the idea started - it is a form of currency that is as old as the earth itself. Leloko is the estate to watch over the next few years. The ‘purchaser/trader’ who chooses to exchange for land in Leloko scores with land value that has already appreciated.”

In terms of legalities, the barter transaction is also known as an exchange agreement (ruil transaksie), where one owner exchanges his property for the property of another, i.e. the “purchaser” of the property uses another asset to pay for the property he purchases. The value of both properties needs to be determined by an accredited valuer, and SARS needs these valuations to determine the transfer duty tax/VAT payable on the value of both properties. The “purchaser” will pay transfer duty tax/VAT on the property he received in the transaction – hence both parties to the transaction will therefore pay transfer duty tax/VAT. Should the values of the properties in the transaction not be equal, the agreement must indicate how the difference is to be paid. The barter transaction can only be done between two registered owners of property.

Meyer says many of the current market factors (interest rates, new NCA, etc.) make property purchasing increasingly difficult. “With this in mind, most property owners (whether purchased, inherited, etc.) own a global currency that has a value and can be traded. The client does not need to apply for any financing - the client uses the currency he/she already owns. It has endless possibilities. There are many people out there in South Africa that own assets/property they do not utilise. This can be traded for land situated in one of the property hot spots in the country. They can then convert this into cash or keep it for the great growth potential.”