The housing crisis is everywhere – and women over 45 are most at risk of homelessness.
According to the 2021 Census, women made up 44 per cent of the homeless population, a 10 per cent increase since 2016. And that is just the tip of the iceberg as many women are couch surfing, sleeping in cars or crammed in overcrowded homes; invisible to official statistics.
In 2021, Housing for the Aged Action Group estimated that 700,000 people aged over 55 were renting from private landlords, making them particularly vulnerable.
A single shock – eviction, job loss, the end of a relationship, illness and disability or a combination of these factors mean that many women could be just one bad week away from homelessness without even realising it.
In my decade of experience in the property industry, I have seen the systemic barriers that cause women to be financially vulnerable – but many are not aware of these until it’s too late.
Barriers like:
The Rent Squeeze: A recent report by Everybody’s Home, showed that even moderate income earners are struggling with housing affordability. Those earning $100,000 per year, pay 48 per cent of their income on rent in Sydney, 43 per cent of their income on rent in Perth and 40 per cent of their income on rent in Brisbane. For women that are already affected by the gender pay gap, rent can swallow up half their income, leaving almost nothing to save for a deposit or provide a buffer for a sudden setback.
The Burnt Toast Syndrome: Having adult kids stay at home longer so they can save for a deposit for a home, seems like a good idea. However, many parents (most likely, many mums), keep paying more than their share to support their children – leaving them behind the 8-ball when it comes to securing their own housing future.
Sexually Transmitted Debt: When a marriage breaks down it’s often the woman who is still doing the lion’s share of the child-raising whilst also working a full-time job. This barrier significantly impacts her ability to secure housing for herself and her children in the post-marriage chapter.
I am an advocate for getting onto the property ladder however you can, as property provides stability as well as an opportunity to increase your wealth in ways that a job alone doesn’t cut it.
I recently spoke to a mortgage broker who helps women who are divorced, rebuilding their finances or returning to paid work after long breaks. Two of her clients, sisters who had lost almost everything in their divorces, were worried that they wouldn’t qualify for a home loan.
With the brokers help, they pooled their resources, and purchased a home together as co-owners – a model that makes homeownership more financially sustainable. They are now well on their way to building equity in their home, effectively a pay rise they would not have access to if they continued renting.
When I tell this story to women that haven’t yet secured a home, they share that they feel they have missed the boat. Often, the challenges they face are compounded by a lack of confidence. Yet not taking action means fewer choices, increased financial vulnerability and potentially intergenerational poverty.
The good news is that there are clear, practical steps that we as women can take to change this trajectory.
- Seek out financial education for women by women. Often financial language can be full of jargon which puts many off before they even start. Choose courses, podcasts and investment circles that explain money and offer a safe space to ask questions.
- Consider co-owning with a relative or friend. Many people start out being worried about what happens if there is a falling out or one party decides they want to move on. It’s important to plan for the eventualities and create a clear legal agreement that sets out options to exit from day one.
- Look for flexible finance options. Programmes such as Help to Buy, the Family Home Guarantee or shared-equity schemes let eligible buyers purchase with deposits as low as two per cent. Check the Housing Australia website or talk to a broker about eligibility and price caps.
When women gain access to home ownership, they build capital, access better investments, reach financial independence and can provide for future generations.
Home is where the heart is, and it is also where the wealth is. It is time for women to pick up the keys.
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