Women today are beginning to take on additional roles that are typically not associated to them. In response, it only seems natural that men would appreciate their inputs and contribution whilst making major life decisions. One such area is ownership of homes. What was traditionally always a man’s domain is increasingly becoming shared territory. This shift in approach has also been encouraged by appropriate policies. There are benefits that one can look forward to when the property is jointly owned by spouses.
In the event that a property is owned by an individual, succession after his or her demise becomes complicated. On the other hand, if the property is jointly owned by a couple, the surviving spouse automatically becomes the successor. This saves legal hassles, time and effort and provides a sense of peace of mind.
Larger Home Loan
Ever heard of the phrase ‘two heads are better than one’? In real estate, we say two incomes are better than one especially when it comes to applying for home loans. Apart from the reduced financial burden, combining incomes also significantly increases the eligible loan amount. So you don’t have to compromise when choosing a home or worry about paying a little bit extra to get that corner apartment you love.
Better Tax Benefits
When an individual purchases a home, he or she is entitled to tax benefits. One can avail tax deduction of up to Rs 1.5 lakhs on principal repayment (Section 80C) and Rs 2 lakhs on interest payment (Section 24). Additionally, there are tax benefits for first-time home buyers. These increase two-fold when purchasing property with your spouse and applying for a home loan. You can both claim the deductions individually.
Lower Stamp Duty
Depending on the state you are in, there may be a difference in the rate of stamp duty charged for women compared to men as well as for jointly owned versus individually owned property. While the difference usually ranges from 1% to 2%, the amount is significant when calculated.
While these benefits sound great, you must ensure the required procedures are followed to avail the same. For instance, you need to ensure that your spouse is mentioned as co-owner on the title deed as well as co-borrower in the loan application.