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Women are writing important property investment stories with the industry-leading Absa Buy to Let Home Loan.
South Africa (SA) can be seen as a blueprint for the rest of the world when it comes to breaking down barriers for women in the property investment industry. Since the inception of our country’s democracy, the property landscape has shifted dramatically to be more inclusive of women.
According to industry insights compiled by Lightstone in July 2023, women accounted for 57% of SA’s total property market, maintaining the same percentage as the year before. In other words, more than half of SA’s homes are now owned, individually or in partnership, by women. It’s pivotal to underscore that, of this 57% ownership, the corresponding value of these homes is in a similar bracket at 53%. Ultimately, this means that a large portion of local women are not just owning property, but also purchasing property with a similar or nearly equitable value.
Waldo Marcus, Industry Principal at Tenant Profile Network (TPN) from MRI Real Estate Software, indicated that this can be largely attributed to an increase in salary parity, the improvement of career opportunities, a greater sense of independence, improved access to funding and highly supportive networks. This movement towards independent wealth creation and ownership – outside of marriage partnerships – is a trend that Marcus foresees continuing as “more women are using property as an investment tool”.
The consistent and sustained uptick in women investment and ownership is consistent with the data that we’re seeing in Absa trend research, which shows that women, specifically young black females, are making up the largest application volumes.
Accessing finance to buy your investment property
Absa Home Loans provides solutions such as the Buy to Let Home Loan, which enables access to finance for property investment purposes and bolsters the building of residential property portfolios. We understand that our customers need better ways to unlock affordability. This is why we offer the future rental income and existing rental income features in our Buy to Let offering for property investors.
Benefits of the Absa Buy to Let Home Loan*
- Future rental income: Applicants who own one or more residential properties may be eligible to include future rental income in their credit affordability assessment. For those looking to buy a second or additional property for rental purposes (where no lease contract/agreement exists), a percentage of the estimated, market-related future rental income can be included in their credit affordability assessment. We’ll determine your affordability based on income declared on the Home Loan application received, which must indicate existing and/or future rental income.
- Existing rental income: We use the existing rental income currently collected by the seller in the affordability assessment of the purchaser’s application. The projected future income brought in by tenants therefore helps to improve the applicant’s credit affordability assessment. This assumes that the tenants will continue renting the property, as per the original lease agreement.
- Important skills, tips and tricks: Women are empowered to make savvy financial decisions when they have access to support as well as resources. With the industry-leading Absa Buy to Let Home Loan, women from all walks of life can invest in property. The tools and resources below are specifically tailored to each type of investor’s unique needs. They will help you to hone your property investment skills.
- Tools to manage your property portfolio: Managing rental properties can be challenging for investors, as it involves tasks such as finding reliable tenants, ensuring timely rent payments and handling legal documents. TPN effectively addresses these challenges through comprehensive tenant vetting to reduce the risks of late payments and property damage by providing customisable, legally sound lease agreements that simplify the process and ensure compliance. Their advanced rental-payment tracking system monitors payments, provides alerts and generates detailed reports to help maintain consistent cashflow. Additionally, TPN’s in-depth reports on property performance and financial metrics enable investors to make informed decisions and optimise their property management strategies. The discounted rates negotiated with them on behalf of Absa customers for selected offerings help investors assess potential tenants and manage their rental portfolio.
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More expert insights
“While desktop research is important, you should always physically go to the location,” suggests Marcus. Step one is to do in-depth research and analyse available data – most of which is either freely available or accessible at a very low cost. Thereafter, visiting the potential property in person is essential. This way, you can look at amenities, security features and new/future developments in the area. Most importantly, you should also carefully consider the target tenant audience that you have in mind, and assess whether your property would meet their needs.
According to the 2024 TPN Tenant Survey Report, “women are more likely to select sectional-titled flats, townhouses and clusters in a complex before considering a free-standing house”, presumably due to the positive safety implications of these types of properties. This reaffirms why it’s important to always take the psyche of the tenant into consideration.
Find a sisterhood, a syndicate or a network
While research that you conduct on your own plays a significant part in laying the groundwork for your knowledge, there are also broad networks that you can tap into. An early trend that Marcus identified is that “women investors often look at partnerships or a syndicated approach to property purchases”.
Marcus also highly recommends that new investors partner with someone who already has a portfolio of five to six properties. By pooling resources and drawing on each other's knowledge and expertise, collaborative efforts can stand you in good stead. In addition, there are beneficial ways that these partnerships can be tax efficient.
Networking events are another fantastic way to find support and learn from others. For example, the SA Property Investors Network (SAPIN) has a special division dedicated to empowering women in the industry. Here, you can get access to countless courses and workshops, as well as coaching and membership plans.
Absa has partnered with SAPIN to offer our customers an online, introductory Property Accelerator Course and a six-month Foundation Membership (both free of charge) to get started. Through the provided networking opportunities, you can connect with hundreds of like-minded women across SA who have a shared passion for property. This is a great platform to build meaningful relationships, collaborate on projects and learn from one another’s experiences. The network also extends beyond investors, tapping into the expertise of a diverse range of professionals, including town planners, financiers, property inspectors and more.
Whether you’re a seasoned property investor or simply looking to make a start in property investment, we believe in your property investment story.
Apply now for the industry-leading Absa Buy to Let Home Loan to join other women on the property investment journey.
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