Thinking of purchasing a home? Why don’t you buy it in your wife’s name? Especially, with the Government stating a number of benefits for female property buyers, buying a home in your woman’s name will actually get you through an array of benefits. However, purchasing property is never an easy task and in order to get the best deal on board, you need to consider a plethora of aspects among which the main facet to mull over is whether you should buy the house in your name or in your wife’s name.
Well, when it comes to buying a home in your woman’s name, there might not be certain benefits apparently, but if you give a closer look to the same, there will be a hoard of advantages to consider.
Reduction in stamp duty- While registering a property, paying stamp duty is one of the most crucial facets which cannot be averted at any cost and with it varying state wise, getting a layoff in its percentage will actually help you in multiple ways. As long as a property is registered under a woman’s name, the stamp duty charged for the property will be comparatively lower than the amount applicable for a man. As for example, in the state of Haryana, the stamp duty levied for a house under a woman’s name is 4 % while for men, it mounts up to 6% of the agreed value of the property.
Lesser interest on home loan- Have you taken loan for purchasing a new home? Provided, you have bought the property in your wife’s name and the home loan is also registered under her name, you are likely to get charged with less interest rate. For example, when the interest for general customers is given at a rate of 9.55% by State Bank of India, for the women customers, it trims down to 9.50%. Although the difference may sound nominal, but in case, you are dealing with a huge amount of loan, it will actually make a major distinction. Nevertheless, it’s time for you to know that the financial institutions provide such cut-price interest rate only when a woman is the sole proprietor of the property as well as the home loan. Thus, it’s worth suggesting that you should always check with the lender before you take a single step in front.
Now, in case, you are looking for a joint ownership. It can also be a good idea, as it will register the names of both of you, thereby enabling you for a common purchase. Also, if the home loan taken is indexed under the names of both the persons, each one of them can assert for tax deduction in terms of the interest levied towards the loan.
To conclude, although it’s a good choice to opt for co-ownership or purchase the property under one’s wife’s name, still there always remains a chance for the woman to get involved in several legal disputes whenever there is any discrepancy. Thus, as a wise purchaser, you should always weigh up all the probabilities and then only come up with a final choice.