6 Benefits of Married Couples Co-Owning a Property

Getting married means that you get share your happiness, sorrows, and also your responsibilities with your spouse. And as a married couple, you would now have a lot more things to manage and a lot more plans for your career, personal life, and finances. And to offer some relief, there are certain benefits that you can get by owning a joint property with your spouse. 

But many married couples are unaware of the significant benefits they can avail of while purchasing their new love nest. If you are planning on buying a house, you should know all the benefits that will help you get a better deal.

Here is a list of advantages of joint property for married couples that you must know about: 

Tax Rebate

Couples are eligible to receive a tax rebate if they apply for a joint home loan for a property that is to be registered under both names. As stated by Section 80C of the Income Tax Act, both borrowers of a joint home loan are eligible for a deduction of up to Rs. 1.5 lakh on the principal repayment. 

According to Section 24, both co-borrowers can benefit from a tax deduction of up to Rs. 2 lakhs on interest payments. Also, they can claim a deduction of up to Rs. 1.5 lakh for stamp duty and registration fees as well.

It should also be noted that each co-borrower can benefit from tax breaks on home loan interest rates and principal amounts when a couple jointly owns a home. As a result, the couple can save a significant amount of money. However, one must also know that tax benefits under Section 80C cannot be claimed for an under-construction property.

Lesser Stamp Duty Charges

If you own a joint property with your spouse, you can save up to 1-2% on stamp duty charges. The government of India continues to take significant steps in the interest of women and promote female homeownership in the country, offering discounts on stamp duty for them too. 

However, different places have different charges. So be sure that you do your research. For instance, stamp duty rates in Delhi are 4% for women and 6% for men. In Haryana, stamp duty rates are 4% for women in rural areas and 6% for men. For women in urban areas of Haryana, the stamp duty is 6%, whereas men have to pay 8%. Similarly, in Rajasthan, stamp duty rates for women on home purchases are 4%, while men have to pay 6%. Thus, based on your location, the charges may differ. Still, women applicants will spend a lot lesser as compared to men. 

Better Eligibility

Your chances of getting your home loan can be increased if the applicant is your wife. This is because most financial institutions have easy-to-attain eligibility criteria for women applicants. Also, they may require lesser paperwork and documentation if a woman applies for a home loan. You might also get discounted home loan interest rates. Overall, you can get your loan sanctioned much more easily and in a budget-friendly manner. 

More Affordability

Apart from getting discounted interest rates, applying for a joint loan can prove to be more affordable as compared to an individual loan. This is because there are two incomes of both the co-applicants. While this can make repayment a lot easier, it will further result in a higher chance of loan sanction and help you get the best affordable property. 

Hassle-Free Succession

This might be one of the few factors one would not want to consider while buying a new house. However, it is essential to think long-term while making a big investment. Also, transferring property can be a hassle following the death of a homeowner. Since there are several rules and regulations, the procedure can get really complicated, time-consuming, and excruciating. However, in co-owning a property with a spouse, you will be able to avoid all such issues and ensure the financial security of the other co-owner. 

Non-Financial Advantages

Apart from the many financial perks, owning a joint property with your spouse can mark the beginning of your new journey as co-owners, where both have equal rights to the property. This is bound to give a sense of belongingness to both of you and offer financial security, which is crucial especially today. 

Conclusion

Everyone dreams of buying their own abode. But doing so with the person you love the most is a truly special feeling. Apart from all the intangible benefits, there are several other financial perks that you can avail of, like saving money on taxes, interest rates, and stamp duty, which can contribute significantly to the overall amount of the home loan. Joint property ownership is a very prudent decision, and one must consider it if they are planning on buying a new home for a growing family.