Despite all the gains women have made in society and the workplace, they still generally earn less than men. Women are also more likely to retire with less superannuation than men.
To make up for these shortfalls, many women are investing strategically in real estate. Today, nearly half (47%) of Aussies who own investment property are women, according to an analysis of data from the Australian Taxation Office by the Property Council of Australia.
In 2016, out of eight million investors, female investors outperformed their male counterparts by 0.4 percentage points (40 basis points) over the year; they’ve also outperformed males over the past decade, according to Fidelity.
Susan Farquhar, managing director of Sydney-based Calla Property, said more women are getting involved in property investment due to a desire to gain control of their finances and enjoy security in retirement.
Farquhar – a speaker at this year’s Property Buyer Expo in both Sydney and Melbourne – shared some of the reasons why she thinks women are paving the way in property investment, and why they‘re more likely to be better property investors in the long term.
1. They do their homework before making major decisions.Evidence suggests men are risk-takers and are more readily enticed by get-rich-quick schemes. In contrast, women are more likely to seek investment advice from professionals, who map their financial futures and have a methodical, long-term approach to making money.
“Based on our experiences with clients, females understand the extensive research methodology used to evaluate property, interpret and accept the reasoning behind recommendations provided and then move onto the contract,” Farquhar said. “In comparison, men generally want to know the next ‘hot spot’ to invest in, leading to sub-optimal decisions.”
2. They prefer minimal risk and lower returns.“Women tend to seek property locations with minimal risk and lower returns, which may result in more sensible decisions as they have less exposure to market movements,” Farquhar said. “Essentially they want deeper insights into their properties, so they can make smarter choices and have solid returns from their investments.”
3. They’re not scared of long-term commitment.“Property investment is for those who are willing to be in it for the long haul as short-term trades are unlikely to produce solid gains. Females are not afraid of committing to a plan and are more disciplined in the long term, which can be accredited to a number of reasons,” Farquhar said.
For one, women are less likely to panic in the face of evolving market conditions, and they don’t second guess initial decisions as much due to greater upfront research.
“Women also want to focus on life priorities, such as saving and investing for retirement or their child’s college fund, not on outsmarting the market.”
4. They’re not overconfident.Farquhar believes women aren’t as rash as men when it comes to making investment decisions. “Men tend to have higher turnover from their property portfolio, meaning they incur extra costs and have a higher chance of buying and selling at the wrong times because they are chasing returns.”
5. They’re willing to ask for help.Farquhar said women are more inclined to seek expertise and guidance than males, which can be advantageous in the long run. “It’s more worth it to ask and follow advice first rather than make impulsive and uninformed decisions which can lead to mistakes,” she said.
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