Many couples are prioritizing on purchasing of the property jointly for all the beneficial reasons. They are balancing and trying to make any stone unturned in choosing the best financial option, but what are the reasons behind this?
Joint ownership of a property, not only includes tax benefits but also has options for pooling of funds and getting a higher loan are some of the advantages of the acquisition of the property. The financial benefits are more than you can imagine of. Let’s discuss them in detail: –
Yes, jointly owning property has multiple benefits wherein the life partners can avail irrelevant to the fact that one person is working and other is an also working.
Every couple has an idea about their budget and knows their ability to repay the loan. Therefore, the decision of buying property jointly can make home loan installments easier as the loan amount gets divided among the two of them. This makes the home buying cheap and easy and one can think about buying a property which is slightly more than their budget.
Tax Saving plus
As per the Income Tax rules, both the home loan borrower and the co-borrower can enjoy tax exemption up to rupees 1.50 lakhs for principal amount and up to 2 lakh rupees under the repayment of interest amount. Both of the tax benefits are offered under Section 80/C and 24 of the Income Tax law respectively.
Lower Stamp Duty Charge on property
Nowadays, many State Governments are in view on women empowerment and hence they offer very low stamp duty charges. For example, in Mumbai a female property buyer has to pay Stamp duty of 5 percent and the man is charged with 7 percent stamp duty for the same. So, you can pay less as the stamp duty charge by buying property jointly as a married couple.
Easy Transfer of Property Title
The biggest benefit of buying property jointly is that the immediate death of any partner will not create a problem or burden for the other one. The process for transferring property title from one person’s name to another in case of a single owner is time consuming where the property title is easily transferable as the spouse is an already added as a nominee in most of the cases. Therefore, the process for the same becomes easy in case of sudden death legally wedded partner.
Buying a property jointly can be more fruitful for married couples because if one of the partner dies, the surviving spouse can become the owner of the house. So, the transfer of property becomes easy. In fact, married couples have better savings and futuristic investment options.