It’s 2020, and women are undoubtedly taking more and more control of their finances. Long gone are the days where every woman would be confined to roles such as homemaker or ‘housewife’, with no means of making her own income. Today, new generations of women are more entrepreneurial and business-minded than ever, and one avenue which more and more women are exploring is investing.
RWinvest, a UK-based property company, completed research which found that between September to October in 2018, there had been a 78% rise in the number of female investors. So what has led to this increased interest in the property market? Here, we look at some of the reasons why so many women are investing in property.
Women Have More Financial Independence
Women have been taking their finances into their own hands for decades, with far fewer women opting for stay-at-home lifestyles and more and more women choosing to start their own businesses or pursue high paying positions. While in certain countries, financial independence is more of a struggle for a lot of women, many females have the resources available to them to make money – so why not use them?
By investing, women are able to build up their finances and meet certain goals more quickly or easily. This gives women complete financial independence, ridding them of the need to rely on a partner or parent for money. For women who choose to have children, owning one or multiple investment properties is an excellent way to earn some extra cash during maternity leave or as a way to generate income as a stay at home parent.
The Property Industry is Booming
There has never been a better time to invest in property, particularly in the UK. A number of UK cities offer a lot of potential for those investing in buy to let, and this is definitely contributing to a rise in interest from financially-savvy women. When it comes to UK property investment, the best areas are those with high rental yields, a lot of rental demand, and strong house price growth. Currently, one city that ticks all these boxes is Liverpool, with yields of up to 10% in certain postcodes, and a thriving rental market. Property prices in the North West are low already, but in this current market, prices are available with huge discounts due to the Covid-19 pandemic. Pair this with the fact that North West property prices are set to see a growth of 24% by 2024, and it’s not difficult to see why more women are exploring buy to let opportunities.
Investing Can Even Out Gender-Pay Inequalities
While women are now a lot more independent and financially secure than they were in the past, we can’t pretend that there are no social inequalities that continue to limit women’s earning potential. One of the biggest issues women face today is the gender pay gap. The gender pay gap is the percentage difference between average hourly pay rates between men and women, and this is something that exists in countries around the world, including the UK. In a 2019 study, it was revealed that 78% of the biggest UK companies had a pay gap between genders. Similarly, research on female CEO’s in the UK found that only 5% of FTSE 100 CEOs are women. With this in mind, it’s possible that one of the reasons more women are choosing to invest is so that they can earn the same amount as, or more money than, their male counterparts. If a woman earns less than her male co-worker in the same role, investing in property is a way to take things into her own hands to achieve a better financial status.