Property Investment, Success & Money | The Michael Yardney Podcast Who Make Better Investors – Men or Women?| Rich Habits, Poor Habits
Who make better property investors – women or men?
Up till now the answer may have depended on who you asked (or what gender they were) but neuroscientists have uncovered evidence suggesting that, when the pressure is on, women bring unique strengths to decision making and make less-risky decisions under high-stress situations.
According to the neurobiologist Ruud van den Bos, men under stress experience a huge spike in cortisol, which degrades their decision-making ability.
Women experience a smaller spike, which creates urgency but doesn’t impede decision-making.
Every pundit and analyst in the business world has repeatedly pointed out that today’s business world is continually getting more stressful.
The more stressful things get, the better that women (on average) will become at making decision than men (on average).
So, the conclusion I have come to is that when the going gets tough, she gets smarter and you get dumber.
And since disruptive innovation means the going is always getting tougher, if you’re not hiring and promoting women, you’re only proving how dumb you are.
But back to property investment… Who make better investors?
When it comes to property, men have a higher tendency to gamble and are more easily manipulated while women are usually more cautious, seeking low-risk and long-term sustainable capital growth.
Riskwise found that Property marketers often use enticement by appealing to men's visual senses. For example, it's common practice for female models to be hired to stand beside professional sales people at property expos.
A study of real estate agents who hired models in the past several years is revealing. Typically, the models increased the traffic to their booth by 50 to 100 percent, with a similar increase in the rate of high-quality sales leads, many of which converted into transactions.
It was noted by these agents that even a short absence of the model resulted in an immediate and significant decrease in traffic to their booth.
And you know those so-called free educational seminars which are designed by real estate spruikers to sell off-the-plan, and often low performing, new properties?
Women are more likely to recognise that they are not the client at a free seminar and, in fact, the seminar organiser likely works for a property developer and has a contractual obligation to sell the properties for the highest possible price.
Men, on the other hand, are more likely to be swept up in the hype and believe they are the client, and that the organiser of the free seminar will truly act in their best interests.
Are women really better property investors than men? And if so, why?
RiskWise research shows women are more aware of risks and seek tools to manage it; men tend to ignore the risks.
Women's interest in risk and mitigation strategies is 38 per cent higher than men. In fact, studies have shown men are overconfident and have a higher tendency to gamble.
Of course this is a concern in the property market, where high-risk ventures can have devastating consequences.
Are there differences in the money behaviours of men and women?
- GAMBLING -- Women gamble less than men. Not only do fewer women gamble, but for the women who do gamble, they gamble less frequently.
- RISK TOLERANCE -- Men have a higher risk tolerance than women. This is a good thing and a bad thing. A low risk tolerance is a good thing when it comes to making big purchasing decisions. Women are more apt to study the details of a major purchase than men. The devil is always in the details. So, understanding the details can save you from making a big purchasing mistake.
- READING -- Women read more than men. That’s the good news. The bad news is that women read more for entertainment. Men, conversely, read more for learning and self-improvement.
- COMMUNICATION -- Women are better communicators than men. The average woman speaks 7,000 words a day compared to 2,000 for men. Good communication is a Rich Habit. Miscommunication damages relationships, businesses, negotiations and can lead to mistakes and failure.
- CREATIVITY -- Men are more creative than women. This is physiological. Men have a smaller corpus callosum. The corpus callosum is the bundle of neural nerve fibers that separates the right hemisphere of the brain from the left. Recent studies on creativity have shown that those with a smaller corpus callosum are hardwired for greater creativity.
- ORGANIZATIONAL SKILLS -- Women have greater organizational skills than men. Because they pay more attention to details and are more cautious by nature, they tend to do more planning. This makes them better organized when it comes to facts then men.
- SAVING MONEY -- Women are better at saving money. They are more cautious with their money. They comparison shop to get the best deals. They look for discounts.
Links and Resources:
Michael Yardney’s Mentorship Program
Some of our favourite quotes from the show:
“We can’t make the big jobs in government or business any less stressful, but we can ensure that when the pressure rises, there’s a better balance between taking big risks and making real progress.” Michael Yardney
“Gambling is a poor habit. It’s one of the habits that hold people back because they don’t recognize that it’s a tax for people who can’t do maths.” Michael Yardney
“They come to the party with different talents, different skills, but if they combine them, work well together, boy have they got unlimited opportunities.” Tom Corley
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