The Benefits of Buying Property in a Woman’s Name

The Benefits of Buying Property in a Woman’s Name
buying property

To encourage more women into venturing into real estate investment as well as to promote women empowerment, several states are offering greater discounts to women homebuyers. Hence, registering the property in the woman’s name or as a co-owner, could help you reap better benefits. This is aside from empowering and securing the woman’s future by registering a substantial asset in her name.Here is a look at some major benefits of buying property in the woman’s name:

Tax Benefits – The tax benefits of buying property in the woman’s name are greater as they are eligible for bigger tax rebates. Women enjoy extra tax benefits on payable interest of up to 1.5 lakhs every financial year – provided the property is self-occupied. This tax deduction is still applicable even if the woman is just a joint owner, and also earns an income. The tax relief will be applicable on her half of the property.

Discount on Interest Rates – Its the tradition in India to use a home loan to buy property. This makes the interest rate on the home loan a critical factor. With women being offered lower home loan interest rates, taking the loan in the woman’s name (singly or jointly) would result in a cheaper home loan altogether. For the woman to be eligible for a home loan, she should be having an income.

Relaxation in Stamp Duty – Every state government in India fixes a stamp duty upon sale or change of ownership of property. This can vary from 4-8%, depending on the state and no property transaction is legal without paying stamp duty. To empower women, some states waive off the stamp duty while other states reduce the percentage when it comes to woman’s ownership of property. For example, in Delhi men get to pay 6% as stamp duty while women only pay 4%. The 2% difference accounts for a large sum of money when talking in terms of total cost of property.

With these added sops from the government, buying the house in the woman’s name would be a brilliant move as there are other add-on benefits too. But do keep in mind that the woman should be earning an income.