Boss Lady

Property is still the perfect investment, even if you’re a solo woman

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It was once the case that women found it either impossible or difficult to purchase real estate investments on their own. Even when archaic laws changed to allow women to own property (more on that later) bank managers would only consider lending to couples … or single men, of course. But times have changed and despite the ever-prevailing gender pay gap and wage disparity, women are increasingly doing solo purchases of property, which they see as part of the perfect investment portfolio.

Women are in fact far outpacing men when it comes to buying property, in particular houses and apartments. The single woman is the fastest-growing demographic of real-estate buyers with around 20% of sales being attributed to them. Their male counterparts are lagging way behind with less than 10% of all sales being to single men.

Why is this happening?

The reason this is happening is simple, it’s a matter of choice. A 2018 report by the Bank of America discovered that most women put owning a property as part of their perfect investment strategy ahead of settling down and having children. This marks a significant change in women’s priorities over the last few years and also reflects on a number of changes in society overall.

In 2020, there are more women in the workforce than ever before, and even those that do choose to marry and have children return to their careers afterward. But women are also earning a lot more than before. In the US, almost half reported earning between $25,000 and $75,000. While many of them tend to be older- around 54 years old, there is an increase in younger buyers. Around 75% purchased their first home, alone, before the age of 40.

This is significant and also ties into various other trends related to women and their position in the world. A growing number are shunning marriage or getting married older, and those that do want to get married, are not waiting around for the ideal partner to help them get their foot on the property ladder.

How they are doing it

As for how they are purchasing, the majority of women are opting for a mortgage. This is not because they lack the capital or require a loan, but it’s because doing so allows them to keep financial assets liquid, which is a key factor in a perfect investment strategy, especially if they are looking at diversifying their investment strategy.

Single women make up exactly half of all sole mortgage applications and this is increasing gradually. This shows that women don’t see being single as a hindrance and are not scared to take out a home loan on their own. It’s often the case that prior to making a decision, they will browse a mortgage comparison site such as Trussle to see which providers offer the best rates for single applicants. Interest, term, conditions, value, and other factors can be compared side-by-side so a well-informed decision can be taken. Services such as this optimize the mortgage experience by comparing deals from 90 lenders, saving time for those who use the site.

How things were

For lots of women, buying a home on their own is a demonstration of their independence and success. Having a career, saving income, and purchasing property independently was something that their not-too-distant ancestors were not allowed to do.

In the mid-1800s, married women in the US were not allowed to own property. They were also unable to inherit real estate and anything that was rightfully theirs, was managed by their husband. These women were also forbidden from entering contracts and earning a salary which made dreams of buying a property impossible. Unmarried women however could own property, but the notion of an unmarried woman was something shameful and unusual. Upon the almost inevitable marriage, the property would subsequently become that of her spouse.

Between 1839 and 1867, laws started to change and married women could manage property in the case of her husband dying or being incapacitated. The legislative changes came in several different phases and by 1900, states allowed married and unmarried women the right to buy, sell, and own property.

 

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Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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