The landscape of wealth in the UK is evolving rapidly, with women playing an increasingly prominent role. Belinda Inocco writes
Women now comprise about 46% of Britain’s millionaires, growing by 11% annually, according to Reuters. With 25 female billionaires in the UK and more women advancing into senior roles, their financial influence is rising. However, despite this increasing clout, investment in real estate debt remains an underexplored avenue for many women.
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Indeed, less than a third of real estate investors are women according to online recruitment firm, Zippia, despite the fact that they represent 39% of global employment in the sector (according to McKinsey & Co).
Looking at real estate more specifically, investing in real estate debt opportunities offers distinct advantages in terms of capital preservation and growth. With potentially more efficient returns compared to stocks or shares and without the burdens of property management, investment in real estate debt is a compelling opportunity.
Control and flexibility
Investment in property debt strategies, particularly through investment platforms, offers flexibility that suits women juggling careers, family, and personal goals. For instance, the ASK model allows investors to choose opportunities aligning with their risk appetite, time availability, and financial goals. This model provides control over investment choices, offering empowerment often missing in traditional investment vehicles.
By diversifying across asset classes and geographies, investors can spread risk while maintaining control. The ability to customise a portfolio to specific risk and return preferences — without the hassle of regular property management or the oppressive tax regime — makes real estate debt appealing. Transactions and portfolio management, for instance, can be handled through a private client portal, fitting those who wish to stay involved without sacrificing time.
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By GlobalDataAligned with risk preferences
Research shows women are generally more risk-averse than men in investing. This cautious approach, while protective, can lead to missed opportunities in higher-return investments. The ASK investment model, for example, addresses this by providing a range of opportunities across multiple asset classes and risk profiles, tailored to suit individual risk preferences. Tailored investment strategies that match individual comfort levels, helping mitigate risk while allowing participation in a familiar market without the overwhelming responsibilities of being a landlord.
Financial freedom and efficiency
For many women, including myself, investing extends beyond returns; it’s about achieving financial autonomy and creating a legacy. Investment in real estate debt offers a tangible 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.
I personally invest in the opportunities which ASK offers. The challenges of direct property ownership, like tenant management and maintenance including the current tax regime, have deterred me, like many potential investors, from being a landlord. However, investing into property loans secured against a variety of properties in different locations eliminates these barriers, allowing the benefits of property investment across a broad portfolio with regular income from interest payments, but without the associated headaches. This is particularly advantageous when cash savings yield minimal returns, and active property management is impractical.
A growing market
As the number of financially empowered women grows, so does their potential to shape the investment landscape. Embracing real estate debt investing allows people to actively manage their personal wealth. Ultimately the goal is to build a well-diversified portfolio that not only meets financial goals, but also aligns with personal values and long-term vision.
In conclusion, the real estate debt market is a relatively unknown asset class often assumed to be reserved for institutional investors not individuals, but it offers a unique blend of control, flexibility, and efficiency that resonates with individual investors. As women’s financial power continues to rise, so should their presence in this market.
Belinda Inocco is the Head of Private Client at ASK Partners
