Posted On Mar 30, 2022 by Rajat Homes
Purchasing a property is normally a life-changing decision, thus you must make a smart and diligent decision when dealing with the transaction. As a result of the changing mindset of today’s generation toward women and the place they hold in society, national banks and governments have come up with many special offers, including one in the real estate sector. Buying a property in a woman’s name can have many advantages, whether she owns it alone or jointly.
Several government programs assist women who purchase property in their names, such as exemptions from taxes, reductions in stamp duty, and discounts on home loans. All of these discounts and benefits are meant to empower women, strengthen them with resources and assets, and improve their economic status and lifestyle so that they are less susceptible to exploitation. According to statistics, there is an imbalance in gender ratios in northern states. The male population outnumbers the female population. Thus, this discount scheme was introduced to incentivize women property owners. As women tend to repay loans more religiously and are less likely to default on payments, banks are eager to loan money to women.
In this article, we will explore the advantages of buying a home in a woman’s name.
Usually, when a woman purchases a property in her name, the home loan is also in her name. Bank requirements stipulate that loan accounts must be in the name of the account holders. If a woman owns the property, she is eligible for a tax reduction. If a woman has a separate income and lives with her spouse, both of them can take individual tax deductions.
When applying for a home loan, the rate of interest is the most important factor to consider. Working women can apply for a home loan and also take advantage of exclusive women’s home loan benefits. Most banks offer a lower interest rate to female buyers. For instance, working women typically have home loan rates around 8.55%, while male counterparts might have rates around 8.60%. Women can also redeem this lower percentage if they are co-applicants. Thus, registering your property in the name of your spouse becomes very advantageous if you are taking out a mortgage.
Stamp duty is a tax imposed on any purchase of real estate and is calculated in percentage of a property’s market value or the agreed value. Stamp duty percentages vary from state to state. The state governments in India offer discounts to women who purchase property or to couples registering jointly when one is a woman.
Recently, one of our clients, Mrs Sagarika Mukherjee, a teacher by profession, moved into one of Southern Vista’s premium bungalows in South Kolkata. Mrs Mukherjee received this beautiful bungalow as a gift from her husband Mr Dipak Mukherjee on their 25th wedding anniversary. Mr Mukherjee registered the property in her name. Aside from the amenities offered by Southern Vista’s premium bungalows, he has also received numerous benefits like exemptions from taxes, reduced stamp duty, and loan concessions while purchasing it.