By David Shaw. 08/03/2016
You only have to read or hear any form of media recently to see that now more than ever, there is a greater push for acknowledgement of the inequalities between men and women particularly with salaries and superannuation. What was once seen by the traditionally male dominated executives as women merely complaining because of their lifestyle choices, is now being supported with hard data that women do in fact struggle to not only match the salaries of their male counterparts, but can struggle to build their own wealth.
Remuneration for work performed does not support those who do wish to raise a family. Should a woman decide to have children, superannuation ceases and careers take a lot longer to restart. For a woman who has two or three children, she could lose a decade of remuneration and missed opportunity. Provided women are armed with the right tools, building wealth can begin at any stage.
When investing in property, there is a misconstrued belief that only wealthier individuals can do so. With more and more apartments, townhouses, and dual occupancy housing being built to keep up supply, an investor can invest without having to have multiple jobs.
There are also government incentives should you purchase a newly constructed house. In NSW, there is a $10,000 first home owner grant. Should you not wish to live in the property first, NSW also offers $5,000 towards the purchase of new investment properties, including vacant land as well as ‘substantially renovated’ properties.
In VIC, the incentive is worth $10,000, however one off duty reductions are available should you make the property your principal place of residence. In QLD and SA, it is $15,000 for new or ‘substantially renovated’ properties, with $10,000 offered in ACT and WA for new or ‘substantially renovated’ properties. In NT it is a massive $26,000. It is worth checking with the relevant state and territory revenue offices to confirm at the time of purchase.
If this is still not an option, there are other affordable housing options where you can invest via shared equity schemes and some lenders do offer low-deposit loans and lending assistance is available in many case for those in public housing or as a sole parent. Other options may include investing via Defence Housing where through a lease arrangement, you are provided with guaranteed rent for a guaranteed period of time.
Investing in property can also be a minefield if not done properly, so joining support groups specifically for women can provide you with insight and strategies with like minded women who are striving to reach similar goals.
If property investment isn’t yet possible, focussing on building your superannuation will help to cover years where no superannuation contributions are being made. If financially possible, salary sacrificing to superannuation will accelerate your superannuation and leave you with less tax to pay annually. Whilst not as generous as in previous year, the government is still offering a maximum of $500 for after tax contributions made per year. Not a lot, but the earlier this can be started, the better off your super balance will be. In future years, property can then be purchased via you superannuation when the time is right.
With the financial hurdles for women more often than not higher than men, greater societal changes are required, which hopefully in time will come. Until then, taking control of your affairs when and where you can will put you stronger independent position when that day comes.
*The advice published on social media mediums by WSC Group is of a general nature and does not constitute specific financial advice. For a detailed financial strategy you should consult with a qualified financial advisor before making any investment decision.
David Shaw is the CEO of WSC Group: Certified Practising Accountants and Business Advisors, and
was voted Property Tax Specialist of the Year in the Your Investment Property 2013 Readers Choice Awards (as well as runner up in 2012, 2014 & 2015).
Disclaimer: while due care is taken, the viewpoints expressed by contributors/sponsors do not necessarily reflect the opinions of Your Investment Property.
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