Finance

Why Every Woman Needs a Property Investment Strategy

By October 23, 2019 October 30th, 2019 No Comments

There are so many reasons why every woman needs a property investment strategy. We interviewed AllianceCorp’s Marketing Director, Jenelle Paetow, who is also a property investor. We learnt how she got started, what’s holding women back and why all women need to start taking control of their financial future today. 

What does the current landscape look like for female property investors? 

At AllianceCorp we have so many female clients who are doing great things with Property Investment and the number is growing all the time. 

There is an increasing number of single, young women in their twenties and early thirties wanting to purchase their first investment property. 

Then you have families where more often than not the woman is the one making the financial decisions. Also we see a lot of women who have been through a separation and have had to completely overhaul their future plans and are looking to build wealth to support their family and plan for retirement. 

Nationally, the percent of women who invest in property is up, which is great to see. But there are still a number of reasons women don’t get involved. 

What are some of the barriers to women investing in property? 

When it comes to getting ahead through property investment, I think women with young families tend to face the biggest struggles – they are so busy raising kids, juggling careers, supporting their partners and managing the household that it can be really hard to find the time or energy to focus on much else. 

I understand this all too well. I have three kids, a very busy husband, a cat, a dog and I also work full time so it is a real juggling act just managing our household let alone planning for the future. But at the end of the day, you have to make it a priority. And if you don’t have the time, aligning yourself with professionals can expedite the process and give you confidence moving forward. 

Another barrier we see often for both men and women is getting the other partner on board. So say you have a wife that is managing the finances for the family. She wants to build a portfolio for the family but her partner might be super busy and just isn’t on board. This really slows down the process for them. 

In these situations I think it is really important to focus on your family goals. Sit down with your partner and help them see the benefit in taking a bit of time to get educated on the benefits of a property wealth plan. 

There’s a lot of talk about women being “better” investors than men. Is this true? 

One gender isn’t inherently better at investing than another. But research regularly shows that investment portfolios managed by women outperform those managed by men. A lot of that has to do with women generally being more comfortable with long-term commitment, so they will happily buy and hold, which can be a great approach in property investment. 

Women are also generally better at help-seeking. Women will often approach others and get advice from the professionals, which serves them well. 

Why does every woman need a property investment strategy? 

There are so many reasons but I’ll start with the fact that most people need an investment strategy – people are retiring without enough savings to sustain them. Superannuation isn’t enough and the pension definitely isn’t enough for any kind of comfortable lifestyle. 

Now speaking about women specifically, women do generally retire with less superannuation than men. Women will often earn less than their male counterparts during their working years, known as the income gap. Women also typically perform a lot of the domestic duties, which can lead to more time off work – whether that’s to have a baby, care for an elderly family member or another reason. Women statistically live longer than men, so every woman needs a plan for her future, to make sure she’s taken care of when she is no longer able to work. Property investment is a great vehicle for accruing wealth and is generally regarded as one of the most stable investments, plus it is far easier to understand than other asset classes, like stocks or bonds. 

So how can women wanting to invest get started? 

Firstly, education. It’s important you educate yourself about property investment before you start. We have free guides and videos to help our clients feel comfortable with concepts ranging from negative gearing to self managed superannuation to choosing the right property type. 

There are also some great podcasts about personal finance and property investing that I love listening to when I’m in the car on the way to work, cleaning or riding my bike. I suggest listening to episodes 6 & 7 of the She’s on the Money podcast where you’ll learn the basics of investing: what is it, and why should you start ASAP. 

We also have great videos and ebooks on our website, which helps people get really clear on all the fundamentals of investing and all the different options available. 

My second piece of advice is to take action. 

The best time to buy a property is 5 years ago. Don’t sit on the fence and let years go by while you umm and arr over what to do. Again, get educated so you feel comfortable with your investment decisions then just get out there. You’ll be no better off if you delay or do nothing. 

We are so confident in what we do that we offer a “try before you buy” model where you can have free consultations with our Property Coaching team about your financial situation, your goals and what property investment path would best suit your circumstances – so I highly recommend you take advantage of that offer. 

Whichever direction you choose to go in, start now.

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