Property investment is a notoriously tricky area. It’s sometimes tempting to hand it over to someone else, or otherwise you doubt your decision-making skills or experience. But Buyer’s Agent Henny Stier from OH Property is here to explain why women can be the greatest investors of all! Here’s why…
In nearly all owner-occupied property transactions we have been a part of, the women tend to play a pivotal role in deciding which property to buy. However, the same cannot be said for investment properties where we notice that men tend to dominate and drive the agenda. This is a real shame and can probably be attributed to a lack of confidence and fear of making a bad investment decision than anything else. Actually we think women make great property investors and more women should venture into property investment without waiting or turning to their partners for leadership. Here are some of the reasons why we think women make great property investors:
1. Finely tuned instincts
Women have excellent instincts and can often quickly ‘feel’ whether a property is good or not.
2. Cautious and do their homework
Women tend to be far more risk averse than men when it comes to investing (in any asset class and not just real estate). However, being cautious should not be seen as a negative. On the contrary, because women are so cautious, they like to be armed with as much information and knowledge as possible. Women are not afraid to ask questions, get help, and make sure that they do their homework prior to making any purchase – be it a handbag or a property!
3. A willingness to learn
Women tend to have a lesser ego than men when it comes to admitting that they don’t know something. Have you ever seen a man unpack IKEA furniture and rush to assemble it headlong without looking at the instruction? How about men who get lost while driving but refuse to ask for directions? These are not just analogies in jest! Women don’t assume to know-it-all and tend to be far more open minded about asking for directions and learning from experts. This is an excellent attitude because the real estate market is constantly changing and there are always lots of new things to learn. Asking for help on such a big purchase shouldn’t be perceived as a sign of weakness; it is smart!
4. Look beyond the numbers
Men who invest in properties tend to only purely look at the numbers. It’s a quantitative transaction to them. While of course it is important to make sure the sums add up, women are particularly good at looking beyond the numbers and also take into consideration the non-quantitative elements of what makes a good property investment, such as the emotional appeal of a property.
5. Not afraid of commitment
Property investment is a long term game and it is important investors have a long term horizon. Women are not scared of committing long term to their property. Because they tend to have done so much research prior to buying, once they commit, they are also less likely to panic in the face of changing market circumstances and don’t make knee-jerk decisions.
Beware of the pitfalls however….
Women can be overly risk-averse, over-analytical and lack the killer instinct to move fast when the right opportunity comes along. A woman’s willingness and ability to canvas for information can be counter-productive if it leads her to be confused by too many differing opinions which can cloud her instincts.