Up to the year 1900, women across the United States could not own property, and it wasn’t until 1974 that women could individually receive a line of credit. Despite these landmark opportunities for advancement, women have earned about 80% of what equal male counterparts have for the past 15 years and make up only 22% of angel investors. These systematic disadvantages take a bigger toll on the collective well-being of women when factoring in that women hold 64% of the $1.5 trillion in student debt that needs to be paid, but take more time out of the paying workforce in order to care for growing children and aging spouses. According to Merrill Lynch, with an average longer life-span of 5 years, women are also expected to pay about $139,000 more in health and long-term care expenses.
With financial realizations like these, it is imperative that women begin a dependable retirement strategy as soon as possible, using techniques such as passive income streams, maximizing savings, and investing post-tax income in steady accounts like rental real estate or real estate investment trusts. However, the number one financial regret women have is not investing more. In addition, managing investments is one of the financial tasks women are least confident in, so investing in an accessible, dependable, and growing stream of income could be a perfect goal for the one in four women who have not begun planning for the future.
A Solution to Overcome
Real estate investing is a way to create long-term wealth while avoiding the volatility of the stock market. Even when the markets crash or economic growth is low, real estate investors still tend to earn revenue through monthly rent payments from tenants. When that monthly rent payment is used to pay your monthly mortgage, someone else is paying off your investment. Real estate is also an investment that usually appreciates over time, offers several tax deductions allowing you to grow tax-free, and has a low barrier to entry when capital and time are leveraged efficiently. By maintaining and committing to a long-term rental property, you can essentially guarantee the start to a nice retirement plan, and this accessible and dependable investment is a huge wealth escalator.
Women Who Invest
The average cost of retirement is $738,000, but only 9% of women have saved $300,000 or more. Of women who invest, 77% feel they will save enough money to last them the rest of their lives. Women make 91% of home-buying decisions, so buying a home for investment purposes is a small transition with big rewards already being realized. Some women entering the flexible and healthy real estate investment market flip-homes full-time, while others work full-time with a portfolio of 20 or more passive streams.
Below is Forbes ‘What to Know Before Investing in Real Estate’. HousingJV is here to help at every step of the way. Did you also know 52% of women investors are interested or engaged in impact investing? Find out how HJV is connecting socially-conscious investors to pre-vetted real estate opportunities.
- Don’t speculate**
- Don’t over-improve first flip
- Dig deep
- Find an expert**
- Keep your eyes open
- Carefully screen tenants**
- Establish your budget**
- Value your time**
- Know your exit strategy
- Start small
- Don’t skip the education step***
- Distinguish between Income and Future Value
- Learn the Market**
- Don’t go at it alone***
- Base your decision on the cost to buy and upgrade
- Ask if it’s a good investment
- Keep your emotions in check