FAQ
Everything people ask before they commit.
Including the uncomfortable ones. If your question isn’t here, email us at contact@mali-zanzibar.com and a person will answer it.
What you hold
A participation: a contractual right to your proportional part of the rental income of one specific unit, and of its sale proceeds. You do not receive a title deed and you do not become a shareholder or partner in any company. You are not lending us money, and you are not buying a token. What the participation owes you is set out in a written participation agreement.
Ours. We sign the purchase agreement with the developer, pay for the unit with the capital raised in its round, and hold it. That is what makes a $1,000 entry possible: a hundred names cannot go on one title deed, but a hundred people can each hold a contract on what the unit earns.
To one unit. You are only entitled to what the unit you chose earns, and you carry none of the costs of any other property we buy. There is no pool.
Three things. There is no bank loan on it, so no lender stands ahead of you. Your percentage is fixed and cannot be diluted by new participations. And you will never be asked to pay in more than you invested.
You can visit the island and see it, and we encourage that. But participations do not come with nights for personal use. The unit is a rental asset, and every night one investor occupied it would be income taken from all the others.
Money in
One participation is $1,000, plus a 10% acquisition fee on top: $1,100 for one, $11,000 for ten. You pay the full amount by bank transfer when you sign. There are no instalments on your side; we pay the developer's instalments.
Yes. The acquisition fee falls as the amount rises. Tell us your budget when you get in touch and we will tell you exactly what applies to you before you commit.
Each deal has a concentration cap so that no single investor can dominate a sale vote. The cap is stated on each listing. If you want to deploy more than the cap allows, spread it across deals or talk to us.
The round is cancelled and you get your investment back in full. The acquisition fee is not refunded. We never buy a property with a partially funded round, and we do not hold your capital open-endedly hoping the rest arrives.
Anyone of legal age, from anywhere, with one exception: we do not accept US citizens or anyone resident in the United States. You confirm this before you invest. Whether the rules of your own country allow you to take part is yours to check. The details are on the Who can invest page.
Money out
Once the property is completed and let. For a current off-plan deal that is typically two to three years after the round closes. Between funding and handover your capital is invested, but it is not paying you. Deals already generating income are clearly marked on the opportunities page.
In US dollars, twice a year. If you have invested $10,000 or more, every quarter. Each payment carries a 2% processing fee, which is why smaller holdings are paid less often: it keeps what you lose to transfers down. Every distribution comes with a statement showing gross rental income, each cost deducted, the fees taken, and the net amount paid to you.
Not freely today, and you should invest on the assumption that you cannot. We intend to open a secondary marketplace where investors can transfer participations to one another, but it does not exist yet and we will not give you a date for it. Treat this as a multi-year illiquid commitment, because that is what it currently is.
The investors in that unit. The first vote takes place twelve months after handover, weighted by participations held, and the majority decides. We put forward a recommendation with a valuation and market context, but we do not sell a unit without that vote.
Risk, fees and tax
Construction risk: off-plan units can be delivered late or not at all, and that risk never goes away entirely. Concentration risk — one island, one tourism economy, so a shock hits every holding at once. Liquidity risk — you cannot readily sell. Currency and regulatory risk. And ordinary market risk: property prices and rental rates can fall. You can lose money, including all of it. The full risk disclosure covers each of these properly.
No. Nothing on this site is guaranteed. Projections are estimates built on stated assumptions about occupancy, nightly rates, costs, completion timing and exit pricing. Assumptions are sometimes wrong. Where a deal has actual performance data, we show that instead.
Five fees: a 10% acquisition fee on top of your investment, lower for larger amounts; a 1% annual management fee on property value; a 10% performance fee on gross rental income; a 2% processing fee on each distribution; and a 1% exit fee on sale. There is no sixth fee.
That depends entirely on where you are resident, and we cannot advise you on it. There may be tax in Tanzania and tax in your home country, potentially with a treaty between them. You are responsible for your own taxes; we provide a statement with every distribution. Speak to a tax adviser in your own jurisdiction before investing — genuinely, not as a formality.
Still have a question?
We would much rather answer it now than have you invest without being sure.
Capital at risk. Projected returns are estimates based on stated assumptions, not guarantees. Off-plan property carries construction, developer, currency and liquidity risk. Past performance does not predict future results. Read the full risk disclosure before investing.