While buying a property in the real estate market, acting smart is all you need to do! Modern-day homebuyers are acting wise these days in order to save money on homebuying. They are making wise decisions about investment in real estate property, intending to make it a conducive deal. Homebuyers are trying hard and leaving no stone unturned to save money on property buying. May it be excluding the real estate agent or broker from the agreement or buying a property in joint with the spouse, there are a handful of smart ways to save money.
Now, when it comes to buying a property in joint, it is something better suited for married couples who can own a real estate property jointly. Of course, this will bring the couple heaps of benefits such as tax savings, low stamp duty, etc. Apart from this, there are multiple other advantages too that involve greater boundings, building trust, along with raising women’s status and whatnot.
So, if you are married and planning to buy a property soon, owning a Joint Property can offer you a plethora of benefits discussed in this article. But before that, let’s understand the basics of Joint Property.
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What is Joint Property?
Joint Property is a real estate property held in the name of two or more parties. These two parties here could be business partners, husband and wife, or any other combination of people who have a reason to jointly own the property. It’s important to note that the marital status of Joint Property ownership is only when the two parties are husband and wife. In simple words, we can say that Joint Property is a real estate property with more than one owner.
Joint Property can be owned under different forms of ownership. For instance, in the real estate law, Joint Property might be held as tenants in common, joint tenants or tenants by the entireties.
How are married couples benefited from buying a Joint Property?
Be it dealing with the home seller directly to avoid the brokerage or choosing the best financial option for the tax advantage, the perfect way is to register and buy the property jointly with your spouse. Not many people are aware of the financial advantages it holds. So, here we will discuss the top 4 benefits of married couples jointly owning the real estate property.
1. Stamp duty and discounts
One of the significant advantages of buying a Joint Property is that it will help you reduce stamp duty rates at the time of property registration. Having joint ownership of a real estate property with a spouse will reduce the stamp duty rate by 1% to 2%. This is a part of an initiative taken by the government for the sake of women empowerment in taking the ownership of property as individuals or jointly.
Stamp duty rates in Rajasthan and Delhi are 4% for women and 6% for men. In urban areas of Haryana, the stamp duty for women is 6% and 8% for men. Again in rural areas of Haryana, the stamp duty for women is 4%, whereas men have to pay 6%. In a similar way, many states in India have less stamp duty for women in comparison to men.
Besides this, many banks like ICICI, HDFC, SBI etc. provide decent discounts on home loan interest rates to women in comparison to men. Though the rate differs from one bank to another, mostly it goes up to approximately 1%. A lower rate of interest always promises a cost-efficient home loan repayment. Apart from this, the lower interest rate will also low down the monthly instalment. The basic rate of discount for women on home loans in India is 0.05%.
2. Great tax-saving benefits
From the taxation point of view, a Joint Property offers multiple benefits to the married couple. A joint home loan is beneficial to all co-borrowers who can claim the tax deduction of Rs. 1.5 lakhs for principal repayment under Sec 80C of Income Tax Act, 1961 and Rs. 2 lakhs for interest payment under Sec 24 of the same Act. The joint home loan tax benefits are claimable as individual taxpayers. So, as a married couple, you can claim Rs. 3 lacs under sec 80C and Rs. 4 lacs under Sec 24. It is definitely worth it and a great boon to save money. But one thing to note here is that tax benefits under Section 80C cannot be exercised for an under-construction residential real estate property.
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Another considerable benefit that Joint Property brings to the table for married couples is the easiness of property transfer. Transfer of real estate property in the case of single ownership is one of the major struggles in India when the property owner dies. As the property is owned by a single individual, the process of transferring the property becomes lengthy and time-consuming. Moreover, the process to get the documents in the name of the successor includes excessive confirmation of rules. However, all these difficulties can easily be overcome if the property is owned jointly by a married couple. Jointly owning the property with your spouse will prevent unwanted succession issues in the future. There will be no succession issues because, by default, the survivor will become the rightful owner of the property.
Finally, the last advantage of owning a Joint property for a married couple is affordability. It is no surprise that real estate property prices have been increasing day by day in recent times. These days, most couples jointly apply for home loans because combining higher income usually promises a higher loan sanction amount. And this is one of the easiest ways of lowering the loan repayment burden. By this, the burden of loan repayment is not on a single person but both the persons involved, i.e. husband and wife.
From the benefits mentioned above, it’s pretty clear that buying a property in joint names as husband and wife is quite sensible for married couples. So, if you are looking forward to buying a new real estate property or a house to live in, then you should unquestionably go for a joint-owned property along with your spouse to avail all the advantages above! And fortunately, we at Clicbrics can help you find one. Call us now on +91-8010820000, and we will help you find your dream home.