In the dynamic landscape of real estate, a notable trend is gaining traction – the decision to purchase property in a woman's name. Beyond the conventional motivations, there are intriguing advantages that make this choice not only empowering but also financially savvy. In this blog post, we delve into the secret benefits of buying property in a woman's name, shedding light on the substantial advantages that extend across taxation, interest rates, stamp duty, rental income, financial security, succession planning, and better loan terms.
Tax Benefits and Joint Ownership:
Opting for joint ownership can unlock significant tax benefits under Section 80C of the Income Tax Act. The joint deduction, especially when there is equal ownership, allows for annual deductions of up to Rs 1.5 lakhs on the principal amount and an additional Rs 2 lakhs on the interest of the home loan. For women who are sole owners and first-time buyers, an extra deduction of Rs 50,000 on the principal under Section 80EE can be claimed. Sorting out ownership status strategically can maximize these additional loan tax benefits.
Low-Interest Rates and Government Subsidies:
The interest rate on a home loan is a critical factor in home buying. Women, with a source of income, can secure a home loan at discounted interest rates, often up to 1%, thanks to exclusive offers for women applicants by various banks. Additionally, the Pradhan Mantri Awas Yojna (PMAY) government scheme provides a substantial subsidy of 6.5% for a 20-year term, making homeownership more affordable.
Reduction in Stamp Duty:
Stamp duty, a significant expense in property transactions, can be reduced for women buyers. Government schemes offer concessions of up to 2% on stamp duty for women, a seemingly modest percentage that can translate into substantial savings, depending on the property's location.
Deductions on Rental Income:
Property owners, particularly women, can benefit from tax deductions on rental income. Women can also claim interest deductions on loans against rental value, providing an additional financial advantage beyond the standard 30% deductions normally allowed on rental income.
Financial Security and Legal Protections:
Buying a home in a woman's name offers financial security, as the property cannot be claimed by government officials or creditors in case of bankruptcy or debt, provided the woman is not a co-owner or guarantor of any loans acquired by her spouse.
Stress-Free Succession Planning:
Co-ownership simplifies succession planning, offering a legally sound solution in the event of untimely demise. The surviving partner can seamlessly become the sole owner of the property, avoiding legal contests and saving money on legal assistance.
Better Eligibility and Loan Terms:
Financial institutions often provide streamlined home loan eligibility criteria and require fewer documents for women. This favorable environment ensures easier access to home loans with more accommodating and streamlined repayment conditions.
In concluding our exploration of the secret benefits of buying property in a woman's name, it's evident that this decision transcends traditional ownership considerations. The financial advantages, tax benefits, and empowerment associated with women as property owners underscore the importance of strategic real estate choices. In this context, KMV Vivaan emerges as a noteworthy player in the real estate arena, embodying excellence in construction, innovative design, and a commitment to creating spaces that align with modern aspirations. As you navigate the path of property ownership, consider not only the physical space but also the ethos of the developers. KMV Vivaan stands as a symbol of a brighter, more inclusive future, offering homes that reflect not just your dreams but also the empowerment that comes with making informed and forward-thinking property decisions. Choose wisely; choose KMV Vivaan.