What Advantages Do Women Home Buyers Have In India?
The number
of women home buyers is on the rise in India. Women have become independent and
confident today. So, not only in the world of career and business but, they are
also putting their foot forward in buying residential properties under their
name. According to a survey, more than 30% of home buyers in urban India are
women. Not only are women buying properties under their name but also, men are
buying properties under the name of their wife or are buying it as a joint
property between both the spouses. Do you know why? Because women home buyers
receive many benefits when they buy a home. Here are some of the advantages.
·
Lower stamp duty – Stamp duty, which is calculated as a percentage of
the agreed value of a property or its market value, and is to be paid before
registration of the property, is one to two percent lower for women in some
states than it is for men. Whether a woman buys a property or a property is
gifted to her or in case of conversion of a property from lease hold to free
hold, the stamp duty charged is lower. If a man jointly registers a property in
the name of a female partner, there are discounts in stamp duty too.
·
Lower interest rates on home loans – As women are found to be more
punctual than men in paying back loans and are less likely to default on
payments, banks and other institutions prefer lending loans to women, and they
also offer home loans at a lower interest rate to women home buyers. For
example, State Bank of India charges a general interest rate of 10.15% for its
customers but, for women home buyers, the interest rate is slashed down to
10.10%, which may seem to be a very tiny difference but, results in a huge
amount at the end of the loan. Similarly, LIC Housing Finance Ltd. charges
10.35% on home loans but, for women home buyers, it charges only 10.10% as interest
rate.
·
Deductions allowed – Women are eligible of tax deduction worth Rs. 2
lakhs on the interest rate paid on home loans. If both the spouses are
co-applicants of a home loan, both of them can claim tax deductions on the
interest rate paid, if the property is let out. Women can also deduct the
interest rate paid against the mortgage loan against the net rental value when
they rent out their home.
According
to the Narendra Modi government’s Housing for All Mission, women should either
be sole owners or co-owners of their homes. This initiative has been taken to
empower women from low-income households. Also, with more assets in the names
of women, the economic status of Indian women can improve, which can make them
less susceptible to exploitation.
An advice for all Indian
men
Whether you
are planning to buy Residential Properties in Bangalore, Delhi, Haryana or anywhere else around the
country, with all these advantages that you learnt, it is beneficial if
you let your property be in the name of your wife, or atleast consider a joint
registration. According to Mayur Shah, Director of tax and regulatory services
at Ernst & Young, "If the wife is a co-owner, she can claim a
deduction of up to Rs 1.5 lakh for the interest paid on a home loan in case of
self-occupied property."
