27 Feb Women power in property – Vanessa Jones
When it comes to property, men have a higher tendency to gamble and are more easily manipulated while women are usually extra cautious, seeking low-risk and long-term sustainable capital growth. That is according to RiskWise Property Review. Vanessa Jones from RiskWise picks up on that story.
Kevin: When it comes to property, men have a higher tendency to gamble and are more easily manipulated while women are usually extra cautious, seeking low-risk, long-term sustainable capital growth. They are not my words – I’m a male; I guess I agree with that – but that’s according to Risk-Wise Property Review. Vanessa Jones from Risk-Wise joins me.
You’re a woman; you’d have to agree with that, Vanessa, wouldn’t you?
Vanessa: As a woman, I can absolutely say yes.
Kevin: Yes, good on you.
Vanessa: Research has shown that men have a significantly higher tendency to gamble and they’re more easily manipulated by marketing ploys. This is also the case with property; it’s no exception. Risk-Wise Property Review has found that property marketers often use enticements by appealing to men’s visual senses.
I’m not sure if many people know this, but there is a common practice of female models being hired to stand at professional salespeople’s booths at property expos. And this actually increases traffic to the booths by about 50% to 100%.
Vanessa: Yes, it’s a lot. With a similar increase in the rate of high quality sales leads, so they convert them, which is really interesting. Examples of such transactions are units and high-rise buildings in Brisbane, for example, that carry a high level of risk and deliver poor and often negative capital growth.
Kevin: And they use women to sell those. I guess the men are sort of attracted to the attractive women there and they want to impress maybe. I don’t know.
Vanessa: I think they’re attracted to a pretty face, and they’ve actually found that when the models go away from the booth, that in some cases, the traffic to those booths drops by 100%.
Kevin: Wow, how shallow are males, hey?
Vanessa, how would you characterize women as property investors?
Vanessa: Women are usually very cautious. They’re seeking low-risk and long-term sustainable capital growth, and there is also a rising trend of young women taking control of their financial futures through real estate. They are much more aware of the risks, and they seek tools to manage them. For example, 58% of our website traffic is generated by women, and the age group of them is usually between 25 to 44.
Kevin: I know this is a general question, but do you think that women are more suspicious because of the way maybe they’ve been treated by male advisors, agents, and the like?
Vanessa: I don’t necessarily think so. I don’t think that’s the case. I do think men are just more over-confident and they have a higher tendency to gamble. They’re more likely to look at high-risk ventures, and that, of course, can have devastating consequences.
Whereas women are more likely to look for risk-mitigation strategies, in fact, 38% higher than men. I think probably because they’re moms and they have families, they’re not willing to put all of that at risk. They’re more concerned about gambling on things like the property market.
Kevin: Yes, it gets back – doesn’t it – to that attitude we talked about right at the start about men being more gamblers and more attraction to the get-rich-quick schemes. I guess the bottom line here, does that mean that women are better property investors than men?
Vanessa: Well, I could be biased, but I would say yes, in general, obviously. I can’t generalize too much, but yes, property investment like any other investment is about effectively undertaking risk management. An investor who invests in low-risk properties that deliver solid returns is obviously a better investor.
Kevin: Yes, because you can’t beat the double whammy, can you? A good husband and wife combination, with each of them having some input into what the final decision is going to be, makes it a pretty powerful combination, really.
Vanessa: Yes, hopefully. You would think men would think with their heads and women would think with their hearts, but I think when it comes to property investment, perhaps it’s the other way around. The combination of the two is obviously going to be the better outcome, but we just stress that research is essential.
Kevin: Indeed. Off topic just for a moment, but in real estate, it’s fairly common that women are the ones who will decide on the agent and the male is the one who will decide on the method of marketing, and mainly because women are a little bit more intuitive. They pick up on the signals given out by agents.
Vanessa: I would agree with that. Yes, absolutely. I think men don’t dig beneath the surface sometimes. It sounds terribly sexist, doesn’t it?
Kevin: You know, the interesting thing is my wife, Carol, and I have talked about this on a number of occasions. I’ll go ahead and have coffee with someone, and then I’ll come home and Carol will ask me a question about the person or the family that I didn’t even think to ask. I think women just ask more questions related to the person whereas me, as a male, I just really want to know what the bottom line is. And “How you’re going?” If they answer me with a whole lot of problems, I probably really don’t want to know.
Vanessa: Yes, for sure. I might say my husband actually thinks I’m nosey, so I do ask a lot of questions. And perhaps that goes the other way into delving into doing your research and getting as much information as you possibly can before you sign that contract.
Kevin: Bottom line here is I guess if men want to become better investors, maybe they have to get a bit more in touch with their feminine side, so we’ll leave it at that.
Vanessa: All right. Thanks, Kevin.
Kevin: Good on you, Vanessa. Great talking to you. Vanessa Jones, my guest there from Risk-Wise.