With the evolution in societal norms and an increase in the number of financially independent women, it is inevitable that women have started investing in assets. Although there are many kinds of good investment portfolios, real estate is a prime asset, especially for women.
Women, if you have set your sights on apartments in Chennai, this article will be a tell-all on why you should invest without delay. And for the men reading this article, there are few choice reasons why you should co-own your home with the women of your home.
Increased eligibility for loans:
Almost everyone who invests in a home takes out a home loan. But did you know banks are considerate when it comes to women? A home loan depends on the total annual income of the individual availing the loan. True, but when you sign up to co-own the home, the incomes of both the woman and her spouse are taken into account. This results in a higher loan amount. This increased eligibility for loans is applicable both for that luxury apartment in Chennai, as well as commercial real estate.
Lower Home loan interest rates:
Many of the major banks and NBFCs in India also offer loans with concessional interest rates to women. They are perceived to be better at handling money, paying back the loan, and have been found to default less on payments when compared to men. This makes them reliable investors.
The state bank of India has waived the home loan processing fee for women in a move to encourage women investors. Even HDFC has a separate Home loan option just for women. The only mandate is that the woman is the Sole applicant or the first co-applicant in the loan document. The rebate can be anywhere from 0.05% to 0.25%. While this may seem insignificant as a percentage, when translated into an actual amount, it makes for considerable savings.
Stamp Duty concession:
There is a significant reduction in additional charges when women invest in property. In several states, the Stamp duty that is levied by the Government for registering your property in its records is just 4% for women, while it can go up to 8% for people of other genders. In states like UP they pay 7%, the same as others, but are entitled to a rebate of Rs. 10, 000 on the total Stamp duty charged.
Tax benefits for women:
Anyone who invests in property is entitled to a tax deduction of up to 2 lakhs on the loan availed to build or buy a home. However, if the property is jointly owned by a married couple, then both spouses can claim it separately on their tax deductions. An additional deduction of Rs.1.5 lakhs can also be availed for houses bought during the period April 2019 – March 2020, provided the house was bought for under Rs.45 Lakhs.
Benefits under the PMAY scheme:
The PMAY or the Pradhan Mantri Awas Yojana scheme was announced by the Government to encourage women to be property owners. Any female, even if she is unmarried, can apply for the PMAY subsidy, as long as she is officially documented as owner or co-owner of the house. In the case of sole ownership, the Government provides a subsidy of up to Rs.2.67 Lakhs.
Secure financial assets:
A woman’s standing in society is precarious. But having a strong financial portfolio improves their living conditions. Even if an individual file for bankruptcy, the government or private bank cannot claim their home if it is registered in the name of the wife. But this is only in the case that the wife’s name is not included as a co-applicant or as the guarantor for any loans taken by that individual.
Easy Mutation of property:
When a married couple co-owns a property, they both enjoy equal legal rights to the property. On the demise of one of the spouses, the property naturally becomes the full legal right of the surviving spouse. Other family members cannot claim rights to that property, and you can save the additional charges involved in the mutation of property.
Lifestyle Housings is a prominent name that pops up when searching for luxury apartments in Chennai. We have expert legal and financial teams who can help you navigate the complex world of home loans and property ownership with ease. Our 3BHK flats for sale in Chennai are located in prime residential areas that are family-friendly and safe for women. They come equipped with luxury amenities and sustainable features.