It can be very daunting considering investing in property, but it can offer numerous benefits, such as long-term financial stability and wealth derived from a steady income and capital appreciation.
Additionally, property ownership affords investors tax benefits and an opportunity to diversify your portfolio.
However, from the conversations I am having with women, many say they feel disadvantaged getting started in this asset class, due to a lack of confidence. (Let’s not mince words, buying a property should be a big deal).
Also, depending on where you live, there can be higher gender bias when seeking finance for an investment property.
For example, recent World Bank-supported research conducted in Turkey showed that 35 per cent of the sample size of loan officers was biased against female applicants, with women receiving loan amounts $14,000 lower on average compared with men.
Finally, earning lower incomes can disadvantage women trying to get on the property ladder. Contemplating taking on the significant financial liabilities of a property while not ‘earning six figures’ can feel impossible.
In fact, all of it can feel very daunting.
But I want to take the opportunity today to encourage you to investigate this market.
There is so much research to show that you are just as likely, if not more so, to be a very successful investor.
Fidelity Investments conducted a study in 2021 that “analysed the behaviour of 5.2 million retail investors and found that women outperformed the men by about 0.4% per year which, when extrapolated out with those compounding returns year after year, creates a marked difference in the performance of their investments”.
In short, women outperform men in the medium to long-term in investments. Studies show this is because women conduct a lot of research, and ask for help from experts. Once we decide on an investment strategy, we are more likely to stick to it for the long-term, irrespective of fluctuations in the market.
Since 2018, the global share of women’s wealth has increased significantly. Wealth manager Coutts says “women’s income globally increased from $20 trillion in 2018 to $24 trillion in 2020.”
You may recognise, or have been told that you are ‘risk-averse’. As a result, you might have absorbed the often negative implication behind those words and now your saboteur (negative self talk) has taken over.
“I’m afraid of risk. It’s just my nature as a woman. It means I won’t be a good investor. I don’t have what it takes.”
WRONG!
Being risk-averse isn’t necessarily a bad thing, as the research I mentioned above shows. The key is recognising that your mindset may be a real factor in your reluctance to make a move.
So, make the leap!
Accessing the education you need and increasing your knowledge will provide you with the necessary tools and resources, as well as the confidence to make informed investment decisions. Find an online property course on platforms such as Udemy. Scan through the available course, read the reviews and start learning.
Read articles and research written by credible property investment professionals/organisations. Consider getting advice from a qualified financial advisor to support you in developing a sound investment strategy tailored to your situation.
Finally, don’t forget the power of collaboration. Speaking with others on your journey as well as those who are further ahead, will offer so much support. Consider joining a network of female investors. Doing so will provide access to a supportive community that can help you learn, share resources, and find investment opportunities.
Join our Community of Professional Women
At Women Build Wealth (WBW), we work to empower women of all ages and incomes to thrive financially. We’re considering creating a thread in our Facebook group where we can specifically discuss investments.
We’d love to hear if you think this would be useful, and also what you would want that space to be like?
Simply, send a reply to this newsletter. We want to hear from you!
Stay empowered, invest smartly, and above all, keep thriving!
