Property has always been a hot topic. But right now – with increasing interest rates, high rental prices and the economic impacts of the pandemic still unfolding before our eyes – it seems like more people than ever are interested (read: worried) about the prospect of buying property.
And while the ability to save up for, and eventually buy, a home is certainly not unique to one gender, I believe that it is especially important for women.
For several reasons that I’ll dig into a bit further, the ability to buy property is uniquely important for women. But ironically – or perhaps, totally expectedly – it’s more difficult for women to get a slice of the property pie.
If simply thinking about ‘buying’ makes your head spin, fear not. It’s not impossible, and there are small steps you can start taking to make it happen for you.
Why property is uniquely important for women
While home ownership is a goal for people of all walks of life and backgrounds, I’m going to make a bold statement and say that owning property is MORE important for women than it is for men.
Why?
Statistically, women are more likely to experience domestic violence and homelessness. Add to that the later retirement age for women, and it’s easy to understand why women need the financial safety net that property can offer.
Investing in property not only allows women independence, but it can also help secure their financial future and safety.
Why it’s harder for women to achieve
So here’s the messed up part: While home ownership is more important for women, it’s also more difficult for women to achieve.
Housing affordability is a real issue – especially for women. ‘But why?’ you might be wondering. ‘Housing prices don’t fluctuate based on gender.’ But while housing prices might not discriminate, salaries sure do.
On average, the gender pay gap is 13.8% in Australia. Women earn only 87 cents to the dollar for men – adding up to a difference of $253.50 per week.
This disparity limits women’s overall ability to save and spend, including saving for and spending on a deposit. Saving for a house is harder for women and takes longer, especially when we have to work against rising property prices like we’re seeing currently.
Every cent counts, and this difference means that women have to slough longer to reach their property goals. It takes the average woman a year longer than their male counterparts to save for a deposit. Seems unfair, right?
The gender pay gap also sets women back in other ways. In addition to hindering their property goals, the gap also impacts women’s abilities to create long-term wealth, which has a ripple effect long into life – and even into retirement.
What can we do?
Unfortunately, levelling the playing field of property buying would require a total overhaul of how women are paid. Luckily, women can now get bank loans without male supervision (this wasn’t always the case), yet the pay gap still lingers. The issue now is not purely about gender but rather the fact that many women simply cannot afford a property due to low wages.
While you might not be able to solve the gender pay gap on your own, there are a few small steps you can take to work towards your dream of homeownership. A few suggestions:
· Consider the First Home Super Saver Scheme (FHSS). It allows eligible buyers to make extra contributions to their super funds and later withdraw them to use towards a house deposit. These savings will only be taxed at 15% instead of your usual tax rate, allowing you to save more.
· Track your progress at work and ask for a pay rise when you deserve it. Women tend not to ask for pay rises as much as men do – meaning missed opportunities for extra income.
· Know the market and know what your job is worth. Negotiate your salary when necessary.
· Understand your industry and when upskilling might be worthwhile. Would going back to uni for further qualifications get you much further in your career?
· Take the pressure off yourself! The journey of buying property will take longer than you think. Historical expectations can’t be met today when it comes to property.
Victoria’s has just released a new book Property with She’s on the Money (Penguin Life, RRP $32.99) which provides an informative guide on the entire process for buying property – whether you’re getting your first foot on the ladder, hunting for your dream home or planning for an investment property.