By Manju Yagnik Vice Chairperson, Nahar Group Senior Vice President of NAREDCO- Maharashtra
The real estate sector in India has been dominated by men for decades, but times have changed. Today, women are almost on par with men in real estate. Currently, 66% of Indian women, according to a recent survey, prefer real estate as an investment. Even before the pandemic, the numbers were on the rise, thanks to woman empowerment and growing awareness of the goldmine that is property investment.
While it’s refreshing to see women take the lead, it is even more delightful that there are multiple benefits for women buying a property. The time is ripe to be a female homeowner as there are several benefits in store; from low interest rates and tax exemptions, to discounts and lower stamp duty charge.
Here are some of the key benefits for women to own a property in India:
Attractive interest rates:
Banks often keep their home loan interest rate low for women borrowers compared to men borrowers. A lower interest rate makes a great impact on Equated Monthly Instalments (EMIs) and provides significant savings over the longer tenure of the home loan. The rates would differ across banks, with a difference of around 0.25 per cent and is also applicable when a woman co-applies for the home loan.
Lower rates for Stamp Duty:
A majority of the state government encourages home ownership by women and thus they provide a significant rebate on registration fee/stamp duty if the property is registered in the name of a lady. Home loan benefits for females include lower stamp duty charges by 1-2%. For eg: the State Government of Maharashtra recently announced in their budget that they would give a 1 % rebate on stamp duty for women which would not only encourage a sense of homeownership among women in the state but would also aid them in saving money spent on the registration of properties.
Tax deductions:
To avail of certain tax benefits, women can also become the joint owner of a property along with her spouse. If she has a separate source of income, both can claim tax deductions individually if they opt for the old tax regime. Hence, under Section 80C of the Income-tax Act, 1961, each co-owner can claim a deduction on the principal payment of up to Rs 1.5 lakh. When it comes to interest payments, each co-owner can claim a deduction of up to Rs 2 lakh. Due to their financial awareness and credit consciousness, women borrowers are also less likely to default on the home loan, and they also have better credit scores as compared to men. This enhances their home loan eligibility and opens up more loan repayment options, too.
Pradhan Mantri Awas Yojana (PMAY):
PMAY is a game-changer initiative for home buyers. The PMAY makes female co-ownership mandatory for the female head of the family. When it comes to the Economically Weaker Section (EWS) and Low Income Group (LIG) category, the PMAY scheme preference is extended to widows as well as single women.
In summation
It is heartening to see so many women in leadership positions in the real estate industry, which is currently booming and also to see women become homebuyers in greater numbers. No one should hesitate because there are so many advantages for a woman buying a home in India!
Also Read: Maharashtra State Budget 2023-24: Women Homebuyers to benefit
