Property investment has become a powerful tool for building wealth, yet Australian women remain underrepresented in this space despite making strides toward gender equality over recent decades, particularly in gaining financial freedom.
But there’s still a long way to go.
Take the gender pay gap, which was 14.1% in August – an increase of 0.3 percentage points over the previous six months. That’s despite the fact that women were granted the right to equal pay way back in 1969. This persistent gap continues to have long-term financial consequences, making it harder for women to build wealth and achieve economic security.
Because women generally earn less than their male counterparts, men retire with an average of 24% more in their superannuation than females. This This disparity leaves many women financially vulnerable in their later years, underscoring the importance of creating alternative wealth-building strategies like property ownership.
Then there’s the issue of homeownership.
While more than 50 years have passed since Australian women required a male guarantor to secure a mortgage, they are still underrepresented in the property market. This reflects ongoing financial inequalities and barriers to entry when it comes to wealth-building opportunities.
In fact, according to CoreLogic’s 2022 Women & Property Report, sole females had the lowest rate of homeownership in the country in January 2022:
- Female ownership = 26.6%
- Male ownership = 29.9%
- Joint male & female ownership = 43.5%
The gender imbalance was even more pronounced when it came to investment properties, with women owning just 29.1% of investment properties across Australia compared to men, who owned 36.4%.
To put that into perspective, that translates to about 105,500 more investment properties owned by men than women. This stark difference highlights the need for more women to take advantage of the wealth-building opportunities that real estate offers.
By entering the property market, women can create long-term financial security, increase their net worth, and close the wealth gap. With the right strategy, the potential for capital gains, rental income, and growing equity can help women build a strong and sustainable financial future.
Why does property investment and ownership matter?
History tells us that Australian property prices rise over the long term, despite the occasional fall. As a result, Australians who own property – both as owner-occupiers and as property investors – typically see their wealth grow over time without doing anything. However, those that don’t own property miss out on this incredible wealth source.
History shows that Australian property prices tend to rise over the long term, despite the occasional dip. As a result, Australians who own property – both as owner-occupiers and investors – typically see their wealth grow over time without needing to take any further action. However, those who don’t own property miss out on this incredible wealth-building opportunity.
For example, the recent property boom boosted household wealth by $170 billion over the March quarter alone, according to the most recent data from the Australian Bureau of Statistics.
That’s why CoreLogic suggests that property ownership plays a crucial role in financial health and wellbeing in retirement. And with women holding a smaller overall share of property ownership compared to men, they’re missing out on a valuable source of long-term financial security.
Looking to take charge of your financial future?
Buying property can be an excellent way to grow your wealth for three key reasons.
Firstly, there’s the potential for capital gains. In April 1993, Australia’s median house value was $111,500, according to CoreLogic. By June 2022, that had skyrocketed by an impressive 855% to $1.065 million, according to Domain. As your property’s value increases, so does your equity.
Secondly, renting out the property can provide a steady income. That rental income can help you pay down your home loan, which also builds more equity in the property.
Finally, you can borrow against your equity and use those funds to invest in another property. Over time, this strategy can help you build a strong, diversified portfolio and create a solid financial foundation for both the present and the future.
Whether you’re an existing or prospective property investor, High Income Property can help you buy a positively geared property in a location with long-term growth prospects. To discuss your options, schedule an online meeting or (02) 8007 4001.