Just in case you missed it, CoreLogic’s 2022 Women & Property report for Australia and New Zealand revealed a notable gender gap when it came to property ownership.
While men own 29.9% of properties overall, women own less – about 26.6% of total properties in Australia. The gap was even more significant where investment properties were concerned: men own 36.4% of Aussie investment properties while women own 29.1%.
The statistics are quite sobering, especially given the incredible amount of equity produced by property and the already existent gender pay gap. These two factors combined mean women are considerably disadvantaged when it comes to wealth creation, particularly through property.
Like many others, we believe the gap needs to close and that women deserve an equal share of the property market.
We’re fortunate to see firsthand the experience of women entering the property market and the success it can bring. So, we caught up with one of our clients, Madeleine, who recently secured her first investment property – entirely on her own two feet.
Madeleine’s story
From a very young age, Madeleine knew she wanted to buy property and turn it into a long-term financial strategy. It was an objective instilled in her by her family, who purchased their first home in Sydney many years ago.
But the fact that Madeleine was looking to buy in the NSW capital made the process all the more difficult, given the high price point of the city’s property market. Instead, she decided to pivot her plan and invest elsewhere as a way to gain financial security.
“Being a young single female in Sydney, it’s really challenging to own a home – for me, it was an impossibility,” she says. “So an investment property was the path to take if I wanted to achieve my goal of owning a property and futureproofing my life by myself.”
Madeleine came to us with a budget of less than $500,000, with her primary purpose being to find an investment property that suited her means and financial goals. We collated a vast amount of data and on-the-ground research, and recommended a property in Adelaide.
Based on our research, we knew the property would deliver a solid rental yield as well as strong capital growth in the years to come. This would eventually allow Madeleine to continue her investment in property and build substantial equity – which is a key goal of hers.
Navigating the market
For Madeleine, the journey towards her first investment property wasn’t without its hiccups. She says that being a young, single woman entering the property market came with several challenges – first and foremost overcoming her own notions around the traditional path to property ownership.
“While it's really empowering to be able to look after myself, it's bittersweet in the sense that the dream traditionally to buy a home with your partner and build a life is gone,” she says. “There are underlying social standards that led me to hesitate for so long.”
“In hindsight, I wished I did it sooner, but that for me was a core barrier to wanting to buy an investment property. I could have done it five years ago, but as a young woman, we are conditioned with that mindset.”
She also says she encountered a lot of prejudice when she first started the property hunt, something she believes is a common experience for young women purchasing solo.
“As a young woman, it is really easy to get taken advantage of and feel out of your depth,” she says. “I used to have real estate agents dismiss me or ask, ‘Where is your partner?’ or ‘Is your dad co-signing?’ which is really discriminatory and offensive.”
“Young women have always been the secondary buyer, not the primary, so it is harder for us to be respected when purchasing a property – whether it be a home or investment – and I think this needs to change.”
“This creates further hesitation because we get discriminated against, which lowers our confidence and impedes our decision-making process.”
Madeleine’s advice for other women
Madeleine has been sharing her experience and advice with other young women also looking to purchase property. We asked her for some of her top tips.
Save in a way that works for you
“I chose not to sacrifice lifestyle – dining with friends, hitting up pubs, avo on toast, living on the North Shore, travel – for my own happiness,” says Madeleine. “I am not the person to compromise my own mental health for the sake of penny pinching. I would never endorse sacrificing life to the means of a deposit as there are other ways.”
“I lived with mum and dad for a significant period of time. I appreciate that a lot of people don't have that as an option so I am really lucky. In the last two years I also opted for a cheap rental solution to save as much as possible towards the end.”
Don’t hesitate to go it alone
“The romantic notion of finding a partner and buying a home together should be made redundant,” says Madeleine. “If you're investing in the deposit, that money is still going to be sitting in an investment and can be growing while you're waiting for the life partner. Instead of the cash sitting in the bank, it's growing in a property and with a return!“
“I think it's empowering that you are growing a nest egg while waiting for a life partner – it shouldn't be the other way round.”
Consider a buyer’s agent
“Especially with the first purchase, I think we lack buying confidence, which creates hesitation,” says Madeleine. “The buyer’s agent fee is a total investment; you get insights on the process, and if it's something you want to do in the future alone, then do the first one supported.”
“I found that using a buyer’s agent took all the emotion out of it for me, which also became a challenge to overcome.”
Just do it
“I don't know if it’s a young woman thing or a me thing, but we probably tend to overthink and second-guess our decisions more,” says Madeleine. “Don't hesitate, just get in there as soon as you can. Get out of your head and don't overthink it – jump in head first.”
Read more about Madeline’s purchase here.
If you’re looking to purchase an investment property, expand your existing portfolio or find a family home, get in touch to see how the Milk Chocolate team can help.
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