Despite all that women have achieved in past years, there still seems to be some investment fields where women are lagging behind, and buy-to-let property is one of them.
Buy-to-let investments have shown incredible returns, so why are women holding back? Here are some of the top concerns women have and how to overcome them.
Fear versus caution: You do not have to look far to find someone who will tell you that investing in property is risky. The suburb you choose may go downhill, you could be stuck with a property you cannot sell, and that is without even mentioning rogue tenants who damage your property and then refuse to pay the rent. For many women, especially moms who are concerned about risking their family’s well-being, investment-related fears can be particularly debilitating and paralysing, leading them to defer decisions about where to invest to the most persuasive investment advisor.
The response when it comes to any investment, including property, should be to understand the risks and proceed with caution. Your chances of success are, for example, greatly enhanced if you save a deposit prior to investing, if you have a slush fund to take care of vacancies and if you seek good advice.
Dealing with the hassle factor: The hassle factor may be enough to put any investor off but is particularly invasive if you have a family, or are a single woman. Many people who have had a go at property will tell you that the hassle of finding tenants (often the wrong ones), collecting rent (or chasing it when the tenant doesn’t pay) and dealing with service providers to fix things that the tenant has broken, is just not worth it.
The truth is there are experts who can help you decide how much to pay and how to find the best tenants, as well as property management companies who will reduce your risks. Advice from an expert will help you to buy in the right area at the right prices, and a good property management company can take the pain out of being a landlord by showing space, recruiting the right tenant, preparing a legally enforceable lease, collecting rent, chasing delinquents, managing service providers and dealing with anything that might go wrong.
Property is emotional for many women: With some notable exceptions, women are drawn to nests. For many, property is often linked to a feelings and dreams about home and family. This comes out in a number of ways, such as a determination to only choose a rental property that we would live in ourselves. The problem is emotional choices can sabotage your chances of success.
Buying a place that you would live in yourself is likely to make you pay too much for your property or buy a place where your rent would need to be high and your vacancy risk potentially crippling. But emotion is not all bad when it can be an incredible motivator—it is just important to know what to be emotional about.