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Women and real estate debt options

Posted on by Vanessa
Women and real estate debt options

The UK's wealth landscape is evolving rapidly, with women playing an increasingly important role. Belinda Inocco writes

According to Reuters, women now make up around 46% of Britain's millionaires, with annual growth of 11%. With 25 female billionaires in the UK and more women rising into leadership roles, their financial influence is increasing. Yet despite this increasing importance, investing in real estate debt remains an underexplored avenue for many women.

In fact, according to online recruiting firm Zippia, less than a third of real estate investors are women, despite accounting for 39% of global employment in the industry (according to McKinsey & Co).

Looking more closely at real estate, investing in real estate debt offers significant benefits in terms of capital preservation and capital growth. With potentially more efficient returns compared to stocks or shares and without the burdens of property management, investing in real estate debt is a compelling opportunity.

Control and flexibility

Investing in real estate debt strategies, particularly through investment platforms, offers flexibility that suits women who want to balance career, family and personal goals. For example, the ASK model allows investors to select opportunities that match their risk tolerance, time availability and financial goals. This model enables control over investment decisions and offers a level of authority that is often missing from traditional investment instruments.

By diversifying across asset classes and regions, investors can spread risk while maintaining control. The ability to tailor a portfolio to specific risk and return preferences – without the hassle of regular property management or the onerous tax regime – makes real estate debt attractive. For example, transactions and portfolio management can be handled through a retail portal, which is suitable for those who want to stick with it without wasting time.

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Aligned with risk preferences

Research shows that women are generally more risk-averse than men when it comes to investing. While this cautious approach is protective, it can result in missed opportunities in higher-yielding investments. For example, the ASK investment model addresses this issue by offering a range of options across multiple asset classes and risk profiles tailored to individual risk preferences. Tailored investment strategies that suit individual comfort levels, helping to mitigate risk while allowing participation in a familiar market without the overwhelming responsibility of a landlord.

Financial freedom and efficiency

For many women, myself included, investing is not just about returns; It's about achieving financial autonomy and creating a legacy. Investing in real estate debt offers a concrete and efficient way to grow wealth with more stable and predictable cash flows compared to the often volatile stock market. Additionally, real estate typically has a lower correlation with other asset classes, providing a hedge against economic downturns.

Personally, I invest in the opportunities that ASK offers. The challenges of direct property ownership, such as tenant management and maintenance including the current tax regime, have discouraged me, like many potential investors, from becoming a landlord. However, investing in real estate loans secured by a variety of properties in different locations removes these obstacles, allowing the benefits of real estate investing to be enjoyed across a broad portfolio with regular income from interest payments, but without the associated hassles. This is particularly advantageous when cash savings provide minimal returns and active property management is not practical.

A growing market

As the number of financially empowered women grows, so does their potential to shape the investment landscape. Investing in real estate debt allows people to actively manage their personal assets. Ultimately, the goal is to build a well-diversified portfolio that not only meets financial goals but is also consistent with personal values ​​and a long-term vision.

In summary, the real estate debt market is a relatively unknown asset class that is often thought to be reserved for institutional investors rather than retail investors. However, it offers a unique blend of control, flexibility and efficiency that resonates with individual investors. As women's financial power continues to grow, their presence in this market should also grow.

Belinda Inocco is Head of Private Client at ASK Partners


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