By Maristella Arifi | Bricksave
August 30, 2024
News > Blog Article > Gender equity through real estate crowdfunding
In the world of finance, a glaring gap exists where women continue to trail behind men. From lower wages to fewer investment opportunities, the financial disparity is undeniable. Yet, women tend to live longer than men, which begs the question: Why do men earn more when women live longer? This inequality isn't just a matter of numbers; it’s a call to action for closing the wealth gap once and for all.
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Traditional routes to financial equality — such as working, studying, and “playing by the rules” — may take many generations to level the playing field. But women can't afford to wait. Alternative avenues, like entrepreneurship and investments, can accelerate the process. However, these often come with high barriers to entry, especially the significant capital required.
This is where real estate equity crowdfunding comes in. By lowering the capital requirement, it eliminates one of the biggest obstacles to investment. It also offers a safe, accessible way for women to begin their investment journey and build confidence. It's encouraging to note that women now make up 30% of our investor pool — a promising figure considering that only 1 in 10 women feel comfortable investing, and just 28% would consider investing their own money according to studies from BNY Investments.
Women are not just investors; they are purpose-driven investors. According to the same study, women are likely to invest in entities that align with their personal values and contribute to societal change. It's about more than just returns—it's about putting your money where your mouth is and making a difference.
Younger generations are leading the way towards a more balanced financial future. In fact, 60% of Millennial and Gen Z women are either open to investing or have already made their first investment. These figures are even more encouraging in countries with younger populations, such as Brazil, India, and the US, where confidence in investment is on the rise.
Interestingly, a report by Reuters in collaboration with Capital.com reveals that women excel in risk management. They are more cautious, thorough in analysis, and adept at using tools like stop-loss orders compared to their male counterparts. The reason? Capital.com suggests it comes down to ego—something that doesn’t cloud women’s judgment in the same way.
Ego might indeed be the reason why women have better investment performance than men, according to Forbes. The Advisory Group San Francisco (AGSF) shares the same opinion. Both articles highlight that men’s overconfidence often leads to overactivity in their investments, resulting in underperformance. In fact, it's estimated that in a USD 1 million investment over 25 years, women could earn over USD 500,000 more than men simply by being more patient and trusting the process. This overconfidence is often linked to higher testosterone levels, suggesting that women, in general, can be considered better investors.
Investing in real estate can help mitigate the risks associated with overactivity because it is inherently a longer-term investment. This not only promotes a more disciplined approach but also allows investors to stay focused on long-term growth rather than frequent, potentially costly trades.
Bryce Holdaway, a prominent figure in the Australian real estate industry, shares four reasons why women tend to excel in real estate investments on the Empower Wealth blog:
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The potential for women in the investment world is immense and largely untapped. With their natural aptitude for thorough research, risk management, and long-term planning, women have all the qualities needed to excel in investing. However, to fully harness this potential, women need access to the right tools, education, and a supportive environment that encourages their participation. It’s not just about breaking down barriers; it’s about building a community where women feel empowered to invest confidently and with purpose.
Equity real estate crowdfunding provides an ideal platform for this. By lowering the barriers to entry and offering a more accessible way to invest, it creates opportunities for women to build wealth and work towards financial independence. The time to act is now.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
