5 Reasons Why Women Should Buy Property Under Their Name
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Property ownership in India has traditionally been in the name of a male family member. However, in recent years, the trend is changing fast. More women are buying property in their name. Obviously, one reason is that more and more women are working and becoming financially independent. There are many other advantages for the family when women buy property in their name (or buy it jointly). In this article, we explore the benefits of buying property in a woman's name and the benefits the government has for women.
5 Reasons Why Women Should Buy Property in Their Name
Here are the top 5 reasons why women should buy property in their name:
Benefits with interest rate:
The interest rate you pay on your home loan is of utmost importance. A few percentage point savings on the interest rate could save you lacs in the long run. Women get benefits on home loan interest rates - the interest rates are lower for them - up to a percent. The reason is simple - women are viewed as less of a risk - they are dependable and responsible borrowers. Let us understand the difference with an example. Assume the below details for your home loan:
- Home loan amount: Rs 50 lakhs
- Interest rate: 9% (for men) and 8% (for women)
- Loan tenure: 20 years
Calculation:
- At 9% interest rate: The monthly EMI would be approximately Rs 48,871. The total interest paid over 20 years would be Rs 57,29,040.
- At 8% interest rate: The monthly EMI would be approximately Rs 46,096. The total interest paid over 20 years would be Rs 40,65,504.
Savings:
By reducing the interest rate by just 1%, you save Rs 10,73,536 over 20 years.
Savings on Stamp Duty:
Most states have a lower stamp duty for women buyers in India. For example, in Delhi and Himachal Pradesh, the stamp duty difference is about 2%. In Jharkhand, women only have to pay Rs 1 as stamp duty. The stamp duty is on the purchase amount, and if you buy a property of Rs 50 lakh, a percent saving is significant.
Loan Eligibility:
Women can get a higher loan from banks. The loan amount is determined based on the buyer's salary. If women are co-buyers, the wages of both partners are clubbed, and the eligibility automatically increases.
Eligibility in Pradhan Mantri Awas Yojana:
The PMAY scheme has been launched to help women own property with ease in India. According to the rules of the scheme, there must be at least 1 woman owner of the said property, and subsidies up to Rs 2.67 lakh are granted. Also, through the scheme, the central government is working towards the upliftment of the society's Economically Weaker Sections (EWS) and the Lower Income Group (LIG) by allowing a 6.5% interest subsidy to women of these sections. Any woman can avail of PMAY regardless of her marital status.
Tax Benefits:
The tax deductions are similar for men and women, but joint ownership allows for separate claim tax deductions. First-time women home buyers can claim Rs 50,000 on the principal paid over and above the other claims under Section 80EE.
How to register a property in a woman's name?
Here are the steps to follow to get the property in woman's name:
Step 1: Get all the required documents.
Below are some of the mandatory documents:
- Identity proof of the woman (Aadhaar card, PAN card, passport)
- Address proof (voter ID, utility bills, etc.)
- Property-related documents (sale deed, agreement, etc.)
- No Objection Certificate (NOC) from the builder or seller
- Property tax receipts
- Payment proof for stamp duty and registration fees
Step 2: Due Diligence
- Verify property ownership and legal status.
Step 3: Legal Consultation
- Consult a lawyer to understand the legal implications and process.
Step 4: Stamp Duty and Registration
- Pay the required stamp duty and registration fees, which are lower for women, as discussed above.
Step 5: Property Valuation
- Get the property valued for tax purposes.
Step 6: Submission of Documents
- Submit the required documents to the Sub-Registrar's office.
Step 7: Registration
- Once verification is complete, the property will be registered in the woman's name.
Step 8: Collection of Registration Deed
- Obtain the registered property deed from the Sub-Registrar's office.
Benefits Introduced in Union Budget 2024
The Finance Minister has introduced several benefits for women in the 2024 budget.
1. One of the changes will bring relief to women home buyers. The FM during Union Budget 2024 said, "We will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of the urban development scheme."
2. The budget allocated more than Rs 3 lakh crore for schemes benefitting women and girls to promote women-led development.
3. The government will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry and establishing creches.
4. The budget outlines the launch of women-specific skilling programs designed to boost female workforce participation.
Before you go
As we have seen in this article, there are many benefits for women buying home property in India. Women who own property in India are better equipped to manage their finances. A home in their name, apart from all the benefits, ensures their financial security. If you are about to start your financial journey or are an older woman, you should consider buying property in your name - it is an empowering and smart decision for every woman.
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