Benefits in Real Estate for Women buyers
With the increasing financial independence of women, more are taking charge of managing both their finances and buying homes, leveraging the numerous advantages that the real estate industry offers to female homebuyers. Based on the purpose of increasing property ownership among women, the Indian government has implemented various measures. These measures help women get more profit through their house purchases. Government initiatives like low taxes, lower interest rates from banks, and others have strengthened the participation of women in this industry. Let’s go through various benefits of registry in female name in the real estate industry.
Benefits to Women Real Estate Buyers:
1) Deduction in interest and tax benefit:
The state governments and various financial institutions provide various benefits to female property buyers. So, purchasing a house or apartment in the name of a woman in the form of joint owner or sole owner provides a special benefit.
Specifically, purchasing a home in the name of a woman means she will obtain a deduction in interest of up to INR 2 lac each financial year.
If the apartment or house is self-occupied and it has been purchased under the woman’s name, then she is eligible for an additional deduction of INR 1.5 lac as an interest amount (at the end of the financial year).
As per sections 80C, 24, and Sections 80EEA and 80EE, if a man and his spouse jointly own a property, the wife should sign up for the loan in the form of a co-applicant. In this case, both of them can claim tax benefits on their individual salaries.
Another benefit of purchasing a home under a woman’s name is it helps protect financial assets. In case a man faces debt or loss in business then neither creditors nor government can seize the home registered under the wife’s name.
2) Availing home loans at a lower interest rate:
Many banks and renowned financial institutions provide home loans at a reduced interest rate for women. A few schemes that support women homebuyers in this context are ‘Her Ghar’ by the State Bank of India, ‘Women Power’ by HDFC, and the Mahila Awas loan.
To attract women homebuyers, many lenders provide exciting discounts on home loan interest rates. For example, the State Bank of India offers its lowest interest rates for women in different categories of home loans. Many banks provide loans under INR 30 lac for salaried borrowers at 0.25% lower interest to women than men.
3) Lower stamp duty:
Certain state governments in India have declared low stamp duty rates (1% to 2%). The purpose is to attract more women to possess real estate properties either individually or in joint ownership. If a woman buys a property in Gurgaon, Haryana, she needs to pay 5% as the stamp duty. On the other hand, for a property bought at the same price, a man needs to pay 7% as the stamp duty.
For example, if a woman is buying a property in Delhi, she has to pay 4% as the stamp duty, and for an apartment purchased for the same price, a man must pay 6% as the stamp duty.
4) Benefits of Pradhan Mantri Awas Yojana (PMAY)
Through the PMAY, the Indian government provides more preference to women compared to male candidates. This PMAY scheme targets to make women better decision-makers regarding property investment in the country. Under this scheme, if a woman owns a property then the government provides subsidies up to INR 2.67 lacs.
Under this scheme, the government provides approx. 6.5 % interest subsidy up to INR 6 lac of the loan amount. This applies to the following cases of women applicants:
- Women belonging to the Economically Weaker Section (EWS) and having an income of INR 3 lac per annum
- Women belonging to the Lower Income Group (LIG)
Conclusion:
The aforementioned benefits have facilitated more participation of women in the real estate industry. Women real estate buyers can contact Laburnum Developers to buy luxury properties in Gurgaon.