More and more women find their love for investing and using property as a vehicle to secure their financial future. However, by far not as many as men. Why is that and what stands in the way for more women to create a solid financial foundation using property investing?
A common response from women is that they leave that sort of thing to their partners.
And, when digging a little deeper, the two most prominent reasons which hold women back are 1) the lack of investment know-how and 2) the fear of making costly mistakes.
These are valid reasons but when it comes to creating a secure future, the reality is that a) a man is not a plan, b) investing will leverage your income for wealth creation more than a job or savings ever can and c) creating a solid financial foundation for you and your family is not ‘a man’s job’.
With a commonly cited ‘50% of all marriages ending in divorce’ and a trend of women over 50 years old often ending up living alone (over 10% of the population and increasing drastically with age), be it post separation or otherwise, these figures suggest that planning for a financially secure future is paramount, especially for women.
Add to this, that women are commonly the ones that take the lion’s share of providing for the children, both in time and financially post separation, which makes it even more important to create financial independence.
Property investing has long been a main-stake when it comes to creating an investment portfolio and allows for efficient leveraging, meaning with as little as 10%-15% deposit, an investment property can be bought, compared to other investment where 100% of the funds are needed.
And, with the lowest interest rates in over 40 years in Australia, there is probably no better time to embrace property investing. Our ongoing housing shortage and strong rental demand fuelled by an annual population growth of over 300 000 further suggests property to be a sound investment strategy, even for beginning investors, first-timers, and rentvestors.
I am constantly surprised how many women with great careers and good income…
Don’t take the property investing route, leaving them too often with little to show for their hard earned money. And, in the face of continuing wage inequality, women ‘still’ tend to earn only $0.82 to the $1 compared to their male counterparts, which makes it even the more pressing to leverage their income into investing. Plus, the amount of superannuation women tend to build up is commonly far less than that of men, this is due to lower wages and gaps in contributions because of none-waged times during maternity and when raising young children.
While the lack of property and investing know-how and the fear of making costly mistakes may prevent many women from investing, it does not alleviate the need for you to create a solid foundation for yourself and your family, regardless whether you are single, married or in a relationship.
Having had to rebuild my life and my finances after my own separation…
Has made me aware of just how important it is for women of all walks of life to have a financial plan for their future, and how few women do. With property being an ideal way to create a strong financial foundation, I have made it my mission to help women achieve this for themselves.
Coming from a 23-year-background in lending and banking and having been an avid property investor for over two decades, I am now sharing my insights, experience and investment acumen with other women. Having been able to positively impact the lives of hundreds of women through ‘Wealth and Wellness’ events, property investing think-tanks and one-on-one coaching has been most rewarding. If I can prevent more women from having to experience what I went through, then my work is making the difference it is meant to.
With the gender balance still far from even, and the many indicators to how true this is in many areas of life, including property investing, it becomes crystal clear that more women ought to find their love for investing and real estate. Sadly, financial literacy is not taught in schools and most women focus on other areas of life to build know-how and strength in, only to realise all too often when it is too late.
In the vain of claiming equal rights for women, it is frighteningly important to embrace money, investing and independent financial planning as part of that.