Irene StrongSUPPLIED
According to a report by Ernst and Young, women will control almost 75 per cent of the world’s discretionary spending by 2028. The National Association of Realtors in the U.S. reported that twice as many single women as single men bought homes in 2017 (18 per cent versus seven per cent of home sold, respectively).
Among homebuyers who are single, women have taken the lead in the Lower Mainland, says Vancouver mortgage broker Irene Strong. However, those statistics have not yet translated into confidence around home-buying decisions, especially for women with male partners. “Among my clients, it is usually women taking the lead, gathering information and doing the research. But if there is a male partner and he is talking to another lender or mortgage professional, they are more likely to go in that direction.”
Through her work and her book Own Your Piece of the Earth, Ms. Strong encourages women to take a more assertive, proactive approach to real estate investment, using mortgages as leverage to create wealth. She points to one of her clients, a single mom, as an example: “She has been so strategic, seeking out advice and then acting on it. She sold her first home to capture the equity and buy a townhouse further out of the city. When prices jumped, she sold that to buy a house with a rental suite. Her housing costs have dropped considerably because of the rental income. She’s made proactive, analytical decisions that have worked in her favour.”
She urges other women to consider a similar approach. “There are many ways to grow wealth, but the best thing about owning property, versus something like the stock market, is that you have some control. If you’re buying with a long-term plan, historical statistics show that, whatever happens in the market, you’ll eventually get your equity back.”
The key to getting a place on the real estate ladder is remembering your first home doesn’t have to be a dream home, she says. “It just has to be a great rental, with a good layout and location. Just get in the market. If you don’t want to live there for the longer term, you can rent it and have someone else pay that mortgage down.”
Even if it is necessary to subsidize the costs of owning by a few hundred dollars a month, it will serve you better than a savings account, Ms. Strong stresses. “Put five per cent down, buy a property and clean it up – it will allow your money to work for you in a much more productive way than the alternatives.”
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