How SA Women can Make Smart Property Investment Decisions
Buying property is seen as a safe and secure investment and is more tangible and easily accessible than complex money markets, stocks and shares.
03/08/2023
South
Africa’s legal system and customary laws have
historically been an impediment to land and
property ownership for women. Today, in a
democratic South Africa, the legal landscape has
changed, and the biggest obstacle women face in
getting onto the property ladder is the gender
pay disparity.
“Earning less than their
male counterparts, combined with time off for
motherhood, and women naturally becoming the
primary caregiver to their children means that
their future earning capacity is often further
reduced has resulted in women having to be twice
as savvy as men when it comes to investing in
property,” says Andrea Tucker, Director of
MortgageMe.
But investing, they are. In
their numbers.
Reports indicate that single women in the 31–35-year-old age bracket represent a large percentage of the total home buyers in the South African market, outnumbering even couples buying properties jointly.
“Taking the age into consideration, this suggests that many women are looking at delaying starting a family and having children, and are rather working towards furthering their careers and investing extra cash through less risky saving mechanisms,” says Tucker. “Buying property is seen as a safe and secure investment and is more tangible and easily accessible than complex money markets, stocks and shares,” she adds.
Women should play to their strengths
Whilst women are
outstripping men in the homeownership stakes,
they continue to show more caution when it comes
to spending money and creating wealth, taking a
longer-term approach to their house purchases.
“This is further evidence that women are
increasingly aware of their limited earning
capacity. With higher salaries, men have more
disposable income after the initial outlay of
buying a property. They can afford to fix it up
and renovate with a view to ‘flipping’ the
purchase for a quick sale with a good profit.
Women don’t always have that ability and so need
to learn to play to their strengths,” says
Tucker.
If you have no DIY skills or lack the confidence to deal with male builders and contractors, women must use the skills they have to optimise the value of their property investment.
Being admin orientated, a strong
communicator, and a good negotiator all add up
to the attributes of an excellent landlord. If
you can navigate the rental/tenant market with
confidence, buying to rent is definitely an
option worth looking at for women and can create
a solid income stream to supplement a salary.
“Once a woman has made her first house
purchase, she can use this to leverage further
acquisitions and slowly build a property
portfolio. In so doing, she is securing her
future and building wealth for herself and
future generations,” says Tucker. “Financial
independence in a historically patriarchal
society is a critical factor for women’s success
in life,” she adds.
Take a bold approach to financial freedom
During this Women’s Month, be bold and take
the first step towards financial freedom. Do
your sums, create an income and expenditure
spreadsheet and allocate an amount towards
savings each month for a deposit on a house or
apartment. If you already have some money set
aside, calculate how much you can afford to
spend on a property. Shop around – for both the
home and the best terms and interest rates on a
mortgage that you can get.
“You create
your own financial success. Investing in
property – or properties – can accelerate that
success and propel you into a financially secure
future, faster,” says Tucker.