Going long-term in property? Women invest the best

16th October 2017 1:29 PM
Susan Farquhar Susan Farquhar Supplied

WHILE ATO data shows more men than women invest in property, the same numbers show you're probably better off trusting a woman in the long-term.

An analysis of tax office data by the Property Council of Australia shows in 2016 alone, out of eight million investors, female investors outperformed males by 40 basis points over the year, and have outperformed them over the past decade.  

The rise of female property investors can be attributed to their increasing interest in taking control of their finances, with their main concern being security in retirement.

This comes as no surprise as the average Australian woman will need to work 12 years longer to have the same amount of superannuation funds as her male counterpart. 

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Susan Farquhar, Managing Director of Calla Property will be presenting at the Property Buyer Expo this weekend and will share the reasons why women are paving the way in property investment and why they are more likely to be better property investors in the long-term.

1. Women do their homework before making a major decision

"There is evidence to suggest that men are risk takers and enticed by 'get-rich-quick' schemes, whereas 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. In comparison, men generally want to know the next 'hot spot' to invest in, leading to sub-optimal decisions."

2. Seeking 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. Essentially they want deeper insights into their properties, so they can make smarter choices and have solid returns from their investments. This has been reflected with our female clients. In the past 12 months they have been able to get into the market quicker and borrow more, even though lending conditions have been volatile and investment borrowing has been restricted. Of all of our clients, 34% more women than men have more than two investment properties and the past year has also seen a 36% increase in enquiries from single women."

3. Women aren't 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. They are less likely to panic in the face of changing market conditions and they won't second guess initial decisions as much because they do 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. Men can be overconfident

"It's great to be confident as it leads to action and can improve investment outcomes. However, being overconfident can enable someone to believe that they have more control over their investment returns than they actually do. 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. Asking for help

"Generally females are more inclined to seek expertise and guidance than males, which can be an advantage 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."