When buying property, most people consider it a joint decision between a husband and wife. However, more and more women are taking the lead in purchasing property independently. In this blog post, we’ll take a closer look at the advantages of buying property in a woman’s name and why it’s worth considering.
In fact, according to a study by the National Real Estate Development Council, there has been a 20% increase in the number of women buying property in India in the last five years. This trend not only empowers women financially but also comes with a host of benefits that are often overlooked.
Property on Woman’s Name
#1 – Tax Benefits
One of the main advantages of buying property in a woman’s name is the potential tax benefits. In some countries, women may be eligible for certain tax breaks or benefits that men are not.
For example, in India, women are eligible for certain tax exemptions on property purchases, making it more financially attractive for women to buy property.
Stamp Duty Charges in Punjab for women are 5% and for men 7% of the value of property. So if the property is in woman’s name you can save upto 2% charges.
#2 – Legal Protection
Another advantage of buying property in a woman’s name is the legal protection it can provide. In many countries, women have more legal rights to property than men. It means that if a marriage ends in divorce or a relationship breaks down, a woman is more likely to be able to retain ownership of the property.
Additionally, if a woman passes away, the property will automatically pass to her children rather than her husband, providing an added layer of protection for her family.
#3 – Easier Approval for Home Loans
It can make it easier to get approved for a home loan. Many banks and financial institutions have policies in place that favor women when it comes to loan approval.
For example, women can get a loan at a lower interest rate or with more flexible repayment terms.
#4 – Higher Appreciation
Buying property in a woman’s name can also result in a higher appreciation of the property’s value. Studies have shown that women-owned properties tend to be appreciated faster than those owned by men. It is partly because women are more likely to take care of their properties and make necessary repairs and renovations.
#5 – Increased Social Security
Finally, buying property in a woman’s name can also increase the owner’s social security benefits. In many countries, women may be eligible for certain social security benefits that men are not.
For example, women who own property in India may be eligible for a pension scheme unavailable to men.
Essential Things To Remember Before Buying Property In A Woman’s Name
- Keep in mind that for the woman to be able to claim tax benefits individually, she should have a source of income.
- If the woman does not have an income, the property will be considered an asset of the husband.
- In case of divorce, the property will be divided based on the terms of the sale deed.
- If the property is owned jointly, taxes will be calculated based on the individual’s share of the gain.
- It’s important to note that if there are any legal issues in the future, the husband will be jointly responsible even if the woman is the sole owner.
- Banks may not approve a home loan to a woman who does not have a source of income.
Conclusion
It’s worth mentioning that laws and policies can differ based on state, so it’s essential to consult with a legal and financial expert before making a decision. Also, it’s important to note that these advantages should not be the only factors to consider when buying property.
You should consider your financial situation, location, and other important factors to make the best decision.