Since the beginning, women have always been the decision makers when it came to running the house and managing finances. But now they are also taking part in choosing and buying a property. The real estate market is witnessing growth as far as women home buyers are concerned in the country.
As education and career take women away from their hometowns, property investment becomes a way of building long term stability for themselves. This trend is largely visible in metropolitan cities as well as Tier II cities. According to a recent study on women homebuyers in real estate, nearly 42 per cent of women prefer real estate as an investment asset class. Single women home buyers prefer cities like Hyderabad, Bengaluru etc... Because of reasons like safety, education and job opportunities and ample recreational joints and active nightlife. Real estate developers and home loan lenders have realised the potential of this segment and have come up with various offers and incentives to benefit and encourage female home buyers which will also eventually give a boost to the real estate industry.
Buying a property or taking a home loan in the name of a female family member like wife, sister or mother has the following benefits:
Increased home loan eligibility
Majority homes in India are financed through home loans because they are an effective and practical way to buy one’s dream house. But before financing your property, banks and NBFCs evaluate the home loan seeker’s loan eligibility which primarily depends on the salary. Co-owning a house with one’s wife helps increase the loan amount, as in this case both applicant’s incomes are taken into consideration.
Home loans at a lower rate
Several well-known financial institutions, banks are offering home loans with a reduced rate of interest exclusively for women. As a result of these benefits, women are encouraged to own properties for their family members.
Like - ‘Her Ghar’ scheme by SBI has waived off the processing fee for women home loan applicants. ‘Women Power’ by HDFC, and Mahila Awas loan are some other schemes which benefit women who are seeking home loans.
Partial waiver on stamp duty
In many Indian States, stamp duty for women homebuyers is comparatively lesser than those applicable for men.
Tax benefits on Home loan
Both men and women are entitled to a tax deduction on interest paid up to Rs 2 lakh on loan availed for purchase and construction of homes. If the property is owned jointly by a married couple and the wife is earning then both of them can claim tax deductions separately. Under the newly implemented 80EEA Act, if a house is bought in the financial year of April 2019-March 2020 under Rs. 45 lacs, additional deduction of Rs. 1.5 lacs can be availed.
Secure financial cover
Buying a house in a female’s name helps in securing the financial assets too. In case an individual incurs loss or debt in business, the house registered in the name of the wife cannot be claimed by government officials or creditors to cover the loss, provided that the wife is not a co-owner or guarantor in any loan availed by her spouse.
Several real estate companies believe that in the post-COVID world, women will become significant stakeholders while buying property. The engagement of women in buying decision is increasing between the age of 18 and 35 years.
One must remember always, while buying a house in the name of the wife, one must always remember that:
- She should have a regular source of income; otherwise, the property will be considered as the husband’s assets.
- Property in the name of wife is not benami if bought out of a known source of income.
- If the couple co-owns a property, the rental income generated from such property will attract tax from both the owners separately.
TRENDS FOR WOMEN HOMEBUYERS
The latest trends show that 47% of women homebuyers are aged between 25-35 years, 41% of them are between 35-45 years.