Where are Women Putting Their Money?
26 January, 2013 / by Bryan Jaskolka
Traditionally we’ve thought of women as having a close relationship to the home, whether that’s politically correct or not. But today when it comes to that relationship, it’s more about the dollar value women place on that home, rather than the emotional value; and it doesn’t stop there. Today is seeing a huge influx of women in the real estate investment market, with more women opting to put their money in brick and mortar investments than in any other kind – whether it’s their home, or someone else’s.
It’s not actually all that surprising that women would invest into their own homes, making repairs and putting money into it when necessary – especially if that’s the home they plan on spending their retirement years in.
“I am currently spending my resources on ‘getting my nest right,'” said one female Toronto investor that’s currently making renovations to her own home. “I have lived in the same home since 1975 and along the way it has evolved in so many ways. There have been renos and reconstructions and refreshes and I always know exactly what I want.”
But in addition to knowing what they want, women are also particularly keen at knowing what others want, which makes branching out of their home to invest in another is also something that’s picked up speed with women. Not to mention that women naturally have a certain “knack” when it comes to real investing.
That knack comes simply from knowing what people want in a home, and what they don’t. There’s an old joke among real estate agents that, when showing a home to a couple, always cater to the woman and point out certain finishes and updates that are new or are of particular appeal. This is because it’s women who know what makes homes look good and feel good; and they know how to make them inviting to others too.
This is true too when it comes to investing. When there’s a filthy pool and an outdated kitchen on the property, women will know to tackle the kitchen first – because this is what matters to homebuyers. And, while a man may know that pools just don’t hold the lure for buyers they once did, a woman might take it up a notch, deciding to fill the pool in to make room for a large herb garden. Having yard space and a nice landscape is also something that’s of huge importance today, and much more important than a pool – especially here in the chilly Great White North.
But aside from their eye for beautiful upgrades, there’s another advantage that women bring to the real estate investment table. That’s the fact that people are inclined to naturally be more trusting of women. And as every investor knows, trust is a big factor when it comes to real estate investing because it helps people open up.
Say for instance, that a husband and wife investing duo were looking for houses to flip. They may drive through a dilapidated area looking for homes that the owners may be interested in selling. When those homeowners open the door, they’re much more likely to invite a woman in, tell her the story about the home, and be open to hearing any offers or possibilities about what the woman could do with the home. This has made many women very successful in purchasing homes at great prices, and often while they’re in the pre-foreclosure stage but before they’re listed on MLS.
It used to be said that when it comes to investing, real estate is king. But as we’re likely going to start seeing more and more, is that it’s actually queen.