Women have more opportunities to lead independent lives than ever before. But when it comes to investing, it seems there is still a long way to go before women feel included and confident to take the risk. Could real estate crowdfunding pave the way for the future of female investing?
According to a 2018 study, only 29% of women see themselves as investors. Historically, investing has been a male-dominated space, but why is this still the case today? Despite much media and business attention on the wage gap between men and women, there are few reports about the investment gap.
If countries across the world are to have a more equal financial system, it is important for women to feel they have equal access to investment opportunities. And real estate crowdfunding could be a viable entry point.
The importance of women becoming investors
Statistics show that women are likely to live longer than men. In Brazil, for example, the average life expectancy of women is currently 79 years compared to 72 for men. The trend is similar in the US, where the female life expectancy is 81 years and 76 for men, and in the EU women are expected to live until 85 and men 78.
Traditionally, women have been supported financially in their later years through inheritance. However, this model is now outdated. For lots of women living independently, having financial security for now and the future needs to come from their own funds. Investing is a crucial part of saving for the future and enabling women to lead independent lives for years to come. It also offers an additional revenue stream for women to achieve the work and family balance that many aspire to.
Real estate: solving investment blockers for women
With only half of women saying they feel confident with investing compared to 68% of men, equipping women with knowledge and understanding is key to encouraging them to invest. Real estate can provide a solution. Broadly speaking, investing in property is more familiar territory than the stock market, for example. For those new to or nervous about investing, choosing a strategy they feel comfortable with is important for taking a necessary risk.
Real estate investment can also provide income security that many women look for. Around 60% of women see wealth as a means to provide for their family, bringing security and comfort, and property investments fulfil this want by delivering an income stream from rent. At the same time, it offers future security in the form of capital growth.
Crowdfunding: combining familiarity with accessibility and transparency
For lots of women, not having a large sum of capital to invest is a barrier to taking a share of the property market. But crowdfunding could provide a feasible entry route. It removes the need for a significant amount of capital because you can invest as little as $1,000.
With 36% of women saying complexity and a lack of knowledge puts them off investing, being able to invest small amounts to build confidence is another reason why crowdfunding is attractive. At Bricksave, we’ve created a straightforward and transparent platform to help new investors grow their understanding of the process while taking control of their own financial goals.
Creating a more female-centric finance industry
The property market is already becoming more accessible to women. To give you an idea, single women currently make up the second largest segment of homebuyers, beaten only by married couples. The next step for women to make the most of property investment is to see real estate as a strategy for future income, rather than a way to fund their home.
As the wage gap continues to shrink and more awareness is placed on the need for women to invest for the future, we believe the demand for real estate will only continue. Crowdfunding, in particular, will no doubt enable more women to enjoy their share of lucrative markets around the world.
If you’re new to property investment, Bricksave helps make the process simple. Discover why we’re opening up the world of real estate for investment beginners.
October 05, 2020
How crowdfunding is changing the real estate investment world
Investing in real estate has historically been a privilege only the wealthy or fortunate could enjoy. But as crowdfunding rises in popularity, it looks set to change the rules of …
4 reasons to invest in real estate crowdfunding
We believe 2021 is going to be a great year for real estate crowdfunding, despite the ongoing challenges investors across the world are facing. And it seems we’re not the …
Cash flow and appreciation: why both are important to investors
If you want to build a portfolio that serves your short and long-term goals, it's important to consider the type of returns your investments can offer you. In the real …