Financial security and long-term investment have become priorities for many women who are the primary breadwinners. Property is not only a means to financial sustainability but also a means for women to provide for their children or parents.
Recent data collected by Lightstone, a private property company, indicates that there is a rise in single women purchasing property, with 60% of the country’s residential housing stock owned by women. While women view buying a home as a natural step in securing their financial and personal future, they face unique challenges and opportunities. Some of those are fraud and scams targeting women or what happens to their properties once they enter relationships.
We recently spoke to award-winning property investor Silindile Leseyane on what women need to be aware of when buying their first properties and tips for those who often lose them after getting into new relationships.
1. Why is home ownership such an important investment?
Home ownership is a crucial investment that offers a range of financial and personal benefits. It allows individuals to build wealth, achieve financial stability and enjoy the pride of owning their home
2. What are some of the gender gaps that exist in home ownership?
The World Economic Forum’s (WEF) Global Gender Gap Report notes that women earn between 23% and 35% less than men for doing the same work, the gender wage gap is slowly narrowing, allowing women with the financial means to invest in property either as a primary residence or as a buy-to-let investment opportunity.
As women continue to participate economically at an increasing pace, research from Lightstone indicates that single women are the largest property-buying group followed by married couples and then single men. Women are also, interested, buying properties that are more expensive than their male counterparts
3. Can you list some of the scams that women are most susceptible to as homeowners?
- Fake sellers or agents — when buying a home always make sure that you deal with a registered agent with a reputable agency. There are some instances where impostors can scam home buyers by posing as sellers or agents, or the person who is selling the property does not have the authority to sell it. Always ensure that you are dealing with the person who is authorised to sell the property.
- Buying a property without the proper documentation — when buying a home, property transfer needs to be registered at the deeds office, which is usually done through attorneys. A receipt or an affidavit may not suffice as “proof” that one has paid for the home.
- Hidden damages — homebuyers may be scammed into purchasing a property that has hidden damages that may require a small fortune to fix once you have taken occupation.
4. With a lot of single women buying their own properties, what pitfalls often arise when they enter into relationships with this asset?
- One of the pitfalls I see women making is not fully understanding the true cost of property ownership. When you buy a home, not only do you have to plan and budget for the home loan repayment, you also need to factor in other costs such as levies, rates and insurance.
- Insurance is very important for your property, and that is why the Momentum Insure Digital Content Series aimed to provide education and tips about why you need to protect your most valuable asset, which is your home. We shared the importance of understanding the kinds of insurance that you need for your property. Your house is exposed to everyday risks, and the consequences of it not being properly protected can be devastating.
- You need to ensure that you have the right cover to protect your property against unexpected fire, explosion, flood, lightning, burglary and theft.
5. What three pointers can you give to future homeowners in the current climate?
- If you are struggling to keep up with the cost of living, make sure you do all you can to not lose your home. Negotiate with the banks, ask for a rate reduction, extend the term of your home loan and so on. Do all you can to ride out this wave, because it will be even harder to get another property in the future if you are blacklisted and your property is repossessed.
- Try by all means to not cancel your insurance because if you do that and the unforeseen happens you will be in a worse financial position. Contact your insurer to explore alternatives that can work for you and the insurer.
- We are in a buyers’ market, so if you are in the market for a home or an investment property, there is no better time than the present as you will be able to get well-priced properties.
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