The short answer is yes. A recent analysis of Australian Taxation Office figures has revealed women are proving more adept at investing in real estate over the long term.
In fact, about 47% of all investment properties in Australia are now owned by women.
Women are also earning better interest on their investments by 0.4% and have done so for the last decade.
For women like successful property investor Carla Barton, buying and selling real estate properties is a way to achieve financial independence and security.
What can we learn from these savvy female investors?
Barton shares her tips for those looking to invest in real estate.
How Carla’s love of interiors helped her invest in property
Sydney investor Carla Barton, who began her career in real estate before studying interior design, shares how she makes investing in property work for her.
“My biggest influence was my mother,” says Carla. “I grew up around renovating from a young age as my mother ran her interior design company from home.”
Barton bought her very first renovation project in late 2014 in Sydney’s inner west. She knew the area like the back of her hand and knew there was a huge demand for a property so close to the CBD.
“My first property was a deceased estate, a two-bedroom apartment in Dulwich Hill in Sydney, which was on the main road with no parking. I bought it for $505k in 2014, renovated and sold it in 2015 for $640k.”
“I knew I just had to get my foot in the door and that the suburbs of Sydney’s inner west were in a great growth area.”
It hasn’t all been plain sailing though. “I had a difficult moment when my pre-approval from a major bank didn’t materialise into an actual approval. “Having to shift to another bank two days before the settlement was one of the most stressful moments of my property career,” she admits.
It wasn’t until Carla had nailed her third renovation project that she considered herself as a property investor, though it’s something she does in addition to her job as a senior interior designer.
Now she’s well and truly on the property ladder and keen to embark on another project.
“Renovating for profit is highly addictive and after the first flip I knew I was hooked!”, she says.
Carla’s top investing tips
- First off, try and pay off any debt. This will increase your loan capacity. Then choose which area you want to invest in and start researching property prices to determine the deposit you will need so that you can set your savings goals.
- Buy in areas you know well.
- Build a trusted team of professional property service providers.
- Renovate and buy for how you would want to live – for example, if you think it’s a pain walking outside to use a shared laundry, then the buyer will, too.
- Remember it’s a business – do your due diligence and crunch your numbers. You should know your expected profit before you make the purchase.
- Joint Ventures – a great way to learn off seasoned investors and get your hands on a larger project with little or no deposit.
What makes women better property investors?
Female investors tend to be more risk-averse than men and more disciplined when it comes to saving.
Susan Farquhar, managing director of Sydney-based Calla Property, says that women do their homework and are more inclined to seek out experts and professional guidance than men when it comes to property investment.
“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.
Women are also prepared to commit long-term and tend to invest with future goals and security in mind, both for themselves and their families.
“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,” says Farquhar.
“Women want to focus on life priorities, such as saving and investing for retirement or their child’s college fund, not on outsmarting the market,” she adds.