Owning a joint property with a spouse provides numerous benefits such as better Home Loan terms, reduced stamp duty, tax benefits, easy succession, and many more. Continue reading to learn more about the advantages.
Aspiring real estate buyers seek ways to reduce their purchase costs and own a home while saving money. Some effective methods include contacting the seller directly to avoid brokerage, taking out a home loan to claim tax benefits, or co-owning the property to gain some financial benefits. A growing number of married couples today buy a home together because of the numerous benefits that come with the arrangement.
Because many people are unaware of these advantages, we will discuss the following reasons why married couples should consider owning a joint property:
1. Tax Benefits
A tax rebate is available to couples who take out a Joint Home Loan on a property registered in both of their names. Under Section 80C of the Income Tax Act, co-borrowers of a joint home loan can claim a deduction of up to 1.5 lakh on principal repayment. Furthermore, under Section 24, both co-borrowers can claim a tax benefit of up to 2 lakh on interest payments. They can claim a stamp duty and registration fee deduction of up to 1.5 lakh.
Each co-borrower will receive tax benefits on Home Loan interest rates and principal amounts if they own a home together. With these double tax breaks, the couple can save even more money.
Must Read: How to Avail Tax Benefits on a Joint Home Loan?
2. Discounted Stamp Duty Charges
Stamp duty charges can be reduced by 1-2% if you own a joint property with your wife. The Indian government has taken this step to empower women and promote female homeownership in the country. Stamp duty charges for women in most Indian states are a few percentage points lower than for men.
3. Better Eligibility and Loan Terms
Many financial institutions have simple Home Loan eligibility criteria, fewer Home Loan documents required, and discounted Home Loan interest rates for women applicants. These favorable conditions make Home Loans easily available to women with budget-friendly EMIs and streamlined repayment conditions.
4. Easier Affordability
There is no denying that home prices have recently risen. Many married couples apply for a home loan together these days because it combines the incomes of both co-applicants, resulting in an easier and higher loan sanction. Furthermore, the burden of loan repayment is shared by two partners rather than a single person. Joint property registration provides additional benefits to both parties.
5. Stress-Free Succession
Property transfer is one of the most difficult issues to resolve following the death of a homeowner. The procedure is complicated, with numerous rules and regulations. Transferring property with sole ownership is a time-consuming and lengthy process. However, owning a joint property with a spouse avoids all of these stumbling blocks and prevents future problems.
6. Beyond Tangible Benefits
Aside from the financial benefits of owning a joint property, it also serves as a symbol of a couple’s shared happy lives. It’s their safe haven, and it provides them with a sense of security with one another. When there is so much more to share, any relationship will reach new heights of love and respect. Joint property ownership will save the couple money on taxes, interest rates, and stamp duty.
Must Read: 6 Benefits of Taking a Joint Home Loan
Conclusion
After learning about the benefits of owning a joint property, married couples are unlikely to consider purchasing a property as a sole proprietorship. It is strongly advised to choose co-ownership with a spouse in order to reap all of these benefits. Use a Home Loan eligibility calculator to determine the eligible loan amount and a Home Loan EMI calculator to plan timely repayment.
