Investing in Property: Practical Advice for Women Investors

Over the past few years, women have made remarkable strides in various industries, including property investment. While traditionally underrepresented in this space, women are increasingly recognising property investment as a powerful means to achieve financial independence and long-term wealth.

Data from Lightstone reveals that women-only homeowners now account for 38% of the South African property market, demonstrating a growing confidence in property ownership. With more women stepping into professional and entrepreneurial roles, their participation in the real estate sector has been steadily rising. However, barriers such as limited access to capital and industry knowledge still pose challenges. Overcoming these hurdles requires not only determination but also the right strategies and guidance.

Overcoming Financial Barriers

One of the most significant challenges for women in property investment is securing the necessary capital. Alexa Horne, Managing Director of DG Properties, acknowledges that "many women are often cautious about taking on large financial commitments, especially if they are the primary or sole breadwinners." However, understanding financing options is crucial to overcoming this barrier. The good news is that financial institutions are seeing an increase in women applying for home loans on their own. In fact, ooba Home Loans data shows that 75% of women aged 18-25 are applying for home loans independently, a notable rise from 69% in 2019.

Tips for Overcoming Financial Barriers:

1. Educate Yourself on Financing Options: There are various ways to finance property purchases, including traditional bond loans, private lending, and partnerships. Taking the time to explore all available options ensures you find the best fit for your circumstances.
2. Start Small: Beginning with smaller investments, such as a single rental property or a property syndicate, can build your confidence while you gain valuable experience. These options come with lower risk and are more manageable for first-time investors.
3. Leverage Your Networks: Financial advisors and property investment groups can provide valuable advice and funding opportunities. In particular, women-centric networks can offer support and guidance tailored to your needs.

Building Industry Knowledge

Property investment is about more than just money-knowledge of the market, legal requirements, and sound investment strategies is vital for success. Yet, the complexity of the property market can be daunting, particularly for those without experience.

As Horne explains, "Invest time in learning the ins and outs of the property market. Take courses, attend seminars, and consult industry publications." Additionally, having a mentor can significantly boost your confidence and knowledge.

Tips for Building Industry Knowledge:

1. Continuous Learning: Keep abreast of market trends, property values, and changing legislation. There are numerous resources available, from online courses to industry-specific publications and webinars.
2. Seek Mentorship: Finding a mentor with property investment experience can provide invaluable insights. Moreover, partnering with an experienced property agent offers another avenue for gaining expertise, helping you identify lucrative deals and guiding you through the intricacies of the buying process.
3. Join Professional Networks: Becoming part of networks like the South African Property Investors Network (SAPIN) can expose you to valuable industry insights and foster connections with fellow investors.

Building Confidence and Self-Advocacy

Confidence and self-advocacy are crucial in the male-dominated realm of property investment. Developing these skills can help you navigate negotiations, assert your decisions, and foster your ability to push back against industry biases.

Confidence in financial independence is growing among women. For instance, 38% of homeowners in South Africa are now women-only owners, with an additional 33% co-owning properties with partners or others, according to Lightstone. This trend suggests a growing confidence among women in taking charge of their financial futures through property investment.

"Confidence is key," Horne advises. "Believe in your skills and knowledge, and don't hesitate to assert yourself in negotiations."

Tips for Cultivating Confidence:

1. Confidence Building: Investing in public speaking or negotiation courses can be invaluable for building the skills you need to succeed in high-stakes discussions.
2. Leverage Your Strengths: Women often bring unique strengths to the table, including empathy and long-term thinking. Focus on these to enhance your decision-making process.
3. Advocate for Yourself: Be vocal about your achievements and expertise. The more women assert themselves in the property market, the more their contributions will be recognized.

Where to Get Started: Your First Property Purchase

If you're ready to take the plunge into property investment, choosing the right type of property is crucial. For first-time investors, new developments offer an attractive starting point. These properties often have lower initial costs due to benefits such as no Transfer Duty and often come with superior amenities that appeal to tenants.

Developments like The Fynbos and Station House, marketed by DG Properties, are excellent examples. In addition to the no Transfer Duty benefit, these properties often come with guaranteed rental returns, making them particularly attractive to new investors.

Why Choose New Developments?

1. No Transfer Duty: A hidden cost in many property purchases, Transfer Duty can significantly increase the overall expense. New developments exempt investors from this tax, making them a cost-effective option.
2. Superior Rental Returns: Many developers offer rental guarantees, providing investors with reliable income from the outset. In addition, tenants are drawn to the modern amenities and conveniences that new developments provide, increasing the likelihood of long-term occupancy.
3. Appreciation Potential: Well-located developments often appreciate in value over time, providing capital growth alongside rental income.

Tips for Making Your First Purchase:

1. Research the Market: Investigate developments in your area and assess their rental potential. Focus on areas with strong demand and robust growth potential.
2. Consider Future Growth: Select developments in up-and-coming locations where infrastructure improvements or urban renewal projects are planned.
3. Work with a Property Agent: A knowledgeable property agent can guide you through the purchasing process and ensure you understand any guarantees or incentives tied to your investment.

Conclusion

Property investment offers a tangible path to financial independence and wealth creation for women. Though obstacles such as access to capital, knowledge, and industry bias remain, they are not insurmountable. Women can empower themselves to succeed by building their knowledge base, leveraging supportive networks, and approaching their investments with confidence.

As Horne concludes, "The property market is ripe with opportunities for those willing to take the leap. Women have every right to claim their place in this space and should be encouraged to do so."

With the right strategies, support, and mindset, women can break new ground in property investment, ensuring a bright future for themselves and the generations to come.

For more information on DG Properties, call 021 433 2580 or Alexa Horne on 082 349 7799 or visit www.dgproperties.co.za