Do women investors prefer property because of its low-risk nature? Do they need to employ legal safeguards to ensure that their investment is protected? At a recent seminar, investment advisory IP Global brought together a panel of experts to share insights for women investors. Excerpts from the interviews.
Zarah Evans, managing partner, Exclusive Links
What is the percentage of women property investors in Dubai?
The trend for women to invest and own property is rising. With any property investment, there is an element of risk and women usually turn away from risk, preferring instead the more old-fashioned form of protecting their wealth — in the bank. This is obviously very much dependent on their salary income and risk appetite. Still, women relate more with investment in property than other investment avenues like stock and shares.
For expat women, how is investing in property here different from investing in their home country?
The actual opportunity and ability for women to invest in property in Dubai is no different to men. The most important consideration is the ongoing protection of the asset. When purchasing real estate in the UAE, it is always better to do so through the structure of a jointly owned foreign company. A lawyer can give sound advice on this together with clarity on the UAE inheritance laws. Protect yourself with a will registered at the Dubai International Financial Centre Wills and Probate Registry (DIFC WPR), which is designed to ensure non-Muslims, who have assets in Dubai, can bypass Sharia when it comes to succession and inheritance.
Legal aspects to keep in mind when women buy property.
Ensure that the title deed to the property nominates the correct percentage split in ownership. For instance, if you are buying property jointly with your husband, it should show a 50 per cent split for each name on the title deed.
What does the increase in end-user rather than investor buyers mean for this demographic?
The Dubai property market is very dependent on expatriate buyers and, therefore, we are going to be vulnerable to international factors. Today’s market is dominated by end users and long-term investors enjoying world-leading rental yields. Investors are still holding back due to some uncertainly, whereas end users are driving the demand. The end user keeps the secondary market moving as investors lean towards off-plan with the incentivised prices and payment plans. When you are buying an overseas property, especially as an end user, you are also investing in that country and the economic growth of that city. End users are not only investing into the property market but also health, education, consumer sectors and contributing to the workforce.
Do women investors prefer property because of its low-risk nature? Do they need to employ legal safeguards to ensure that their investment is protected?
At a recent seminar, investment advisory IP Global brought together a panel of experts to share insights for women investors. Excerpts from the interviews.
Cynthia Trench, principal, Trench & Associates
Is the percentage of women as property investors going up?
It’s difficult to say whether the percentage of women investors has gone up. We have become more aware of them. With DIFC Wills and Probate Registry being available, women are coming forward. Previously, one did not know how much money was being invested. Now people are putting their asset under protection under the DIFC registry. There’s a smaller percentage of women investors because there’s not that many single or divorced ladies here with medium to high-net worth or income. A lot of the married ladies rely on their other halves to make investment decisions.
How can the investment of women as wives, co-owners, individual owners and offspring be protected?
If they are co-owners, they have rights and percentages specified on the title deed. As a couple you can make mirror wills for cheaper rates from the DIFC. Property wills are also slightly cheaper. These are beneficial if you have a maximum of five properties. Mostly when people have property here they also have assets and bank accounts. Property wills benefit non-resident investors.
For women with children who do invest, they find the DIFC WPR very useful. Single mothers can nominate interim and permanent guardians, which they would not have been able to do previously. The interim guardians are here in the country to help relocate the children to the permanent guardians. Permanent guardians are also properly appointed.
Is having a will registered a norm now?
It is a must-have document. But not enough people have it. Currently, there are just over 2,000 wills registered. Certainly, there are more than 2,000 investors. More education and awareness is required.
Shelley Wren, distribution manager, IP Global
Are you seeing more women from the UAE – both nationals and expats – buying property as an investment?
From IP Global, we take investors into markets, including the UK, Germany and the US. Definitely, we have seen an increase in professional female investors using property for future planning, as a pension plan bolster and as part of a family unit.
Women are buying for the future requirements of their children. They are predominately looking at property as medium to long-term investment. With our offices in 12 countries, we hold their hand through buying property and mortgages, letting and management.
From the UAE, both local and expat women have been very proactive buyers. The UK is one of our most popular destinations and Emiratis know and have an affinity with London. They spend summers there and purchase property there for investment.
Are women in Dubai buying more property?
The UAE is full of professional women working in many different aspects of the commercial world. They are becoming more independent and more astute. Property presents itself as an appealing investment. It is tangible and less risky.
If you are going to live in the UAE for 10 years, is buying property a risk?
No, because you would be spending the money anyway.
Where is the risk?
I’m a classic example: I have been in the UAE for 17 years and was one of the first investors in UAE property. But it’s important to diversify as well and own property in other countries too.
