In today modern society, women are still apprehensive when it comes to investing. Women generally take conservative approach when it comes to equities investment, they are more risk averse when it comes to capital loss and hence prefer capital preservation. Yet, in regards to real estate, women accept the cost associated with purchase and maintenance of the property.
They also understand the fluctuations in property prices and able to accept the downtrend in rental or market pricing. The consolation of owning a visible physical property outweighs the capital loss and continuous associated maintenance cost of ownership. This is a phenomena that I myself as woman trying to digest and understand. Although I do understand the psychological effect of owning a property vs owning shares of company. There is an edge in equities investing in Singapore, given its tax-friendly environment. Singapore does not apply capital gain tax and dividend tax when it comes to equities investing. Similarly, it does not apply capital gain tax to property, however property rental income is subjected to income tax.
Moreover, property purchase attracts buyer stamp duty tax and additional buyer stamp duty tax, which is substantial to the property purchase amount.
From cost alone, equities investing has lower cost and attracts no tax. Moreover, it is liquid.
I was born into a family who owned real estate business;
We bought land, developed them and sold them to public.
We also owned lands, offices, warehouses and homes as our personal asset.
We benefited from rental yield and capital appreciation of the properties, during good times.
We also experienced the illiquidity and difficulties of disposing them to turn it into cash during crisis and bad times.
Such experience made me understand the importance of balancing my wealth portfolio between real estate and equities.
I believe in creating a sound wealth portfolio consisting of:
For my fellow women, equities investing has its advantages:
By doing so, you are making your monies work harder and providing yourself with additional source of passive income.
Profitable investment is boring.
Apply dollar cost averaging strategy.
Have a long term time horizon.
And be discipline in your investing.
That's how you grow your wealth portfolio!
