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News: Women dumping men for property

Wed, 15 Aug 07

Women are turning away from pensions and husbands to provide for their retirement and are instead looking at property to provide for their future, says ThePropertyInvestmentMarket.com...

Traditionally women have relied on their husbands to support them in old age. But with rising divorce rates and more women staying single, they now need to ensure they provide for their own future. 

One in four buy-to-let investors is estimated to be female. This growth has been helped by the popularity of TV shows like Property Ladder, which has made property investing seem much more accessible. Investors like the fact that property is a tangible asset, that they understand and can see how it might grow in value.

By 2020 more women than men will have the final say on household financial matters, according to a recent report.* Women are now catching up men in terms of pay with those in their twenties now earning 96% of men’s wages. By 2030 one in four women will be the main breadwinner in the family.

Women getting a ‘raw deal’

Stephen Kenny, chief executive of ThePropertyInvestmentMarket.com, believes that one of the main reasons women are turning towards property is because the traditional pensions market is still male centered.

“Women get a raw deal when it comes to pensions. Generally they earn less which makes their contributions smaller, and they are also more likely to take a career break for children or to care for elderly relatives, which again affects contributions.

“Unlike pensions, property investment is much more flexible and because it is not linked to earnings it isn’t affected by working patterns and can be fitted around family life. Property is also very tax-efficient for investors who are not working, as you only need to pay the base rate tax on investment.

Risk aversion strategy

Mr Kenny concluded: “From our perspective we have seen a significant rise in the number of women using the exchange. They are being attracted to the idea of putting together a portfolio of property from the comfort and convenience of their own home and then being able to monitor it online.

“The great appeal of property is that people feel they understand it, unlike other forms of investment the concept is straightforward and the rewards are easy to see.

“At TPIM we aim to be as transparent as possible so there are no hidden costs or surprises, and we believe this has wide appeal to women investors, who tend to be more risk adverse and like to plan and research and invest for the long term.”

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