Women home investors on the rise
Women may not have as much buying power as men, but they aren't letting that stop them from reaching homeownership, experts say.
Homeownership by women is on the rise and now it’s at around 20 per cent, it was said at a recent roundtable discussion on “Financial Independence for Women” hosted by John Ke e l l s Properties ( JKP). Featuring a panel of business leaders comprising John Keells Holdings PLC Executive Vice President, and JKP Chief Marketing Officer, Roshanie Jayasundera Moreas, and JKP Head of Sector, Nayana Mawilmada, together with DFCC Bank PLC Senior Vice President – Consumer Banking, Gillian Edwards and EY Partner, Anoji De Silva, it was discussed that women don't necessarily have a simple path to homeownership. "I think there is still a difficulty attached to being a woman and buying a home but it’s changing,” Mr. Mawilmada said.
As women control more wealth than ever before, female homeownership is anticipated to continue to rise. The discussion noted that this is in keeping with the increase in women earning more. As a result, their relationships with money and their financial futures are changing. This is just as well as Sri Lanka is ranked in the 23rd position in terms of highest female population. There are 1 million more women than men in this country.
According to research conducted by JKP, the number of women investing in real estate is on the rise, with 16 per cent
of their client portfolio currently comprising women, as compared with just 9 per cent in 2004. While this trend is a direct result of increasing overall affluence and a rising per capita income, the increase of women seeking ownership of their own property is also tied to increasing financial independence among Sri Lankan women, and a growing desire to diversify into non- traditional investments, Ms. De Silva added.
While these are signs of progress, World Bank research found that 71 per cent of all assets controlled by women were concentrated in cash and women tend on average to channel as much as 90 per cent of their earnings back into their family – in keeping with established societal norms that place a low priority on the financial independence of women. Women also tend to take time off work to care for family members, which contribute to a lower investment rate among women. While both men and women may be looking for similar things in terms of space, value and location, single females may place a greater emphasis on safety and the surrounding community.
According to the research it is identified that women are less likely to invest than men. It says that women prefer traditional investment instruments such as FD, bonds, etc than say investing in properties or housing. Also 71 per cent of all the assets controlled by women are in cash, according to research. Ms. Edwards noted that putting money to work for you by investing it is one of the best ways to beat inflation and reap the benefits of compounding to grow it.
On the sidelines of this discussion, Ms. Jayasundera Moreas told the Business Times that it’s important for women to be able to achieve a sense of financial equality and independence. “Investing is one of the best ways for women to ensure that they have the potential to accumulate wealth.”
As studies show that women rank equally on risk taking, women should be more encouraged to invest in nontraditional investment instruments. Mr. Mawilmada noted that diversification is the key to smart investing. "It can start with maintaining a mix of assets, such as stocks and bonds."
“I believe this is a pathway for Sri Lanka to become prosperous, as it becomes more inclusive, and empowers its women to succeed. At the same time, knowledge in today’s world is true power, and there is nothing that can prevent a woman from learning about investments and taking steps to build her financial independence on her own,” Ms. Jayasundera Moreas added.
According to the research it is identified that women are less likely to invest than men. It says that women prefer traditional investment instruments such as FD, bonds, etc than say investing in properties or housing. Also 71 per cent of all the assets controlled by women are in cash, according to research.