5 reasons women are better long-term investors than men

In 2016 alone, out of eight million investors, female investors outperformed males by 0.4 percentage points (40 basis points) over the year, and have outperformed them over the past decade, according to US-based investment firm Fidelity.

The rise of female property investors can be attributed to their increasing interest in taking control of their finances, with their main concern being security in retirement.

This comes as no surprise as the Australian government's Workplace Gender Equality Agency states that the current full-time gender pay gap is 15.3 per cent and the average Australian woman will need to work 12 years longer to have the same amount of superannuation funds as her male counterpart.

Here are my reasons why women are paving the way in property investment and why they are more likely to be better property investors in the long term.

1. Women do their homework before making a major decision

There is evidence to suggest that men are risk takers and are enticed by "get rich quick" schemes, whereas women are more likely to seek investment advice from professionals who map their financial futures and have a methodical, long-term approach to making money.

Based on our experience with clients, females understand the extensive research methodology used to evaluate property, interpret and accept the reasoning behind recommendations provided and then move onto the contract. In comparison, men generally want to know the next hotspot to invest in, leading to sub-optimal decisions.

2. Women seek lower returns

Women tend to seek property locations with minimal risk and lower returns, which may result in more sensible decisions as they have less exposure to market movements.

Essentially, they want deeper insights into their properties, so they can make smarter choices and have solid returns from their investments. This has been reflected with our female clients.

In the past 12 months, they have been able to get into the market quicker and borrow more, even though lending conditions have been volatile and investment borrowing has been restricted.

Of all our clients, 34 per cent more women than men have more than two investment properties, and the past year has also seen a 36 per cent increase in enquiries from single women.

3. Women aren’t scared of long-term commitment

Property investment is for those who are willing to be in it for the long haul as short-term trades are unlikely to produce solid gains.

Females are not afraid of committing to a plan and are more disciplined in the long term, which can be accredited to a number of reasons. They are less likely to panic in the face of changing market conditions and they won’t second guess initial decisions as much because they do upfront research.

Women also want to focus on life priorities, such as saving and investing for retirement or their child’s college fund, not on outsmarting the market.

4. Men can be overconfident

It’s great to be confident as it leads to action and can improve investment outcomes. However, being overconfident can enable people to believe that they have more control over their investment returns than they actually do.

Men tend to have higher turnover from their property portfolio, meaning they incur extra costs and have a higher chance of buying and selling at the wrong times because they are chasing returns.

5. Women are more likely to ask for help

Generally, females are more inclined to seek expertise and guidance than males, which can be an advantage in the long run. It’s more worth it to ask and follow advice first rather than make impulsive and uninformed decisions that can lead to mistakes.