Women are the pillars of the family. They need to be strengthened in all possible ways. In the present times, women have become completely ready to take on their lives all by themselves as they are earning for themselves, saving for the future and in the process, becoming instrumental in the family’s prosperity. To give women more power and to encourage women home buyers in India, the Indian government has provided some relaxations in the procedures for female property buyers.
Buying a property demands huge financial investment. Any relief on any front of the real estate buying process is welcome whole-heartedly by the individuals who know the importance of such advantages. That is why; men prefer women name property as the female owner attracts tax benefits, less registration charges etc. Let’s examine in detail what all women home buyers need to do differently when they or their family members decide to put their name as an owner of the property.
Buying guide for women home buyers
Buying a property by woman involves easier procedures and preferred registration rates. Use this guide to understand how you can make the best of the situation of the policies provided by Indian government to encourage women home buyers.
Prepare for the home buying in advance
Buying a property requires saving quite a lot well in advance, whether you are a male or a female. The kind of property you are looking for, potential of the property in terms of returns, etc. are some of the drivers that decide how much you need to have in pocket for taking a big decision like investing in real estate. There are several sugar-coated baits floating around in the form of ‘book now, pay later’, ‘EMI only after possession’ schemes which are primarily launched to convince people into buying properties; but, the best way is to earn much and save much more first for the down payment, and then look for the best suitable option.
Search for the property within your reach and suitable to you
There has been a considerable upsurge in the number of female property buyers in the recent times. This trend is attributed to increase in size of pay packages, zeal in women to become more financially independent as well as self-dependent in every sense. Thus, instead of going for flowery real estate schemes and proposals, the female property buyers need to get more calculative with their decision of buying their first real estate property investment.
Firstly, one should clearly understand how much of monthly income and savings you can put aside for the payment of property. In case of availing home loan, the EMI size needs to be evaluated realistically so that the property investment doesn’t land you in jeopardy in the long run.
Secondly, once the self-introspection is complete, the women home buyers can approach the home loan providing financial institutions. They need to find out if the area where the property is located is approved by the home loan funding institutes or not. The major checks required before and while applying for the home loan include:
- Ascertaining clear title of the property
- Requisite approvals from all concerning bodies
- No dues running on the property from any agency
- The property is clear in terms of building regulations, residential use regulations etc.
To make your understanding better, listed here are few legal documents that should be in place when you consider a property for buying:
- Commencement and completion certificate
- No objection certificate for non-agricultural land
- Certificate of ownership/title
- Approvals for water and electricity connections
- Occupancy certificate (OC)
- Approved building plan or layout plan of the flat
Simultaneous to these checks, the female property buyers should also assess the builder reputation, i.e. the track record of the builders in terms of passing over the possession of the flat to the buyer within the agreed timeline. The checks can also be made with regards to the payment plan proposed and whether the home loan terms coincide with that of plan or not. The buyers need to understand clearly that the due payment cannot be averted on any grounds, and so, they should always be prepared to clear it as and when the payment date arrives.
These days’ registration with RERA and availability of GST number can also be checked to ascertain the builder’s reliability.
Guide on ownership of the property
As a working woman, it is your full right to have the title of the property in your name when you have paid for the property from your hard-earned salary and savings. The idea behind promoting women home buyers is to make them more self-dependent and becoming capable of leading their life on their own terms. But, due to family arrangements, emotional bonds and control of spouse and in-laws, many a times, it is observed that the women working hard day and night don’t have any control over their finances, or bank accounts, per se. So, when you choose to invest your money in the property you buy for self-use or for family, it is advisable not to compromise on the ownership part if you want to enjoy the rights on your property completely.
Benefits enjoyed by women home buyers
Thankfully, there are certain states that extend some very interesting benefits to a women name property. These benefits entice the husbands or male members of the family too, to put the women’s name as the owner of the property. Such benefits are:
- Female property registration attracts less cost as lower stamp duty is applicable on property, if the woman is the sole owner.
- Relaxation in home loan rate by 0.25%-0.50% if the loan is taken by woman as the first owner of the property.
In addition to this, the income tax benefits also form a lucrative option for the husbands if they go for a women name property. For instance, when the husband and wife buy a property in joint ownership arrangement, both enjoy Rs 2 Lakhs of deduction as payment towards interest repayment and 1.5 lakhs of deduction towards repayment of principal amount of loan, as per the percentage of ownership mentioned in the sale agreement.
The right time to invest in property is NOW
It is a good step to keep a tab on all the changing trends in real estate sector. If you want to know when the right time to buy the property is, the answer is – now! There are a few very important reasons behind this advice:
- Women earn well and have a major say and contribution in family savings. Including where to spend and how much to spend. Most single women also plan and manage their finances, to be able to buy houses on their own.
- Property rates complement women’s’ strengthened financial status perfectly. Due to strict vigilance and new governance rules applied in real estate sector, the focus of the builders is on finding interested buyers. They have brought down the property rates considerably and the onus of selling unsold units on time is also pressing them to lower down the property rates and sell properties quicker and faster.
- ‘Housing for All’ scheme of the present government has shifted the builders’ focus to taking part in this scheme and enjoy benefits like easy loans, more input credit, etc. Thus, they have sped up the completion dates of projects, making the waiting time for possession of the property much less than before.
Ideal properties female property buyers can consider
Affordability is certainly the foremost criteria which decides which property is suitable for the women home buyers. If finances are not the issue, then the focus should be on the sense of security. With more and more single women looking for property, the need for community living, or properties in residential apartments with proper security arrangements has risen appreciably. Thus, women must go for such properties that can provide them the sense of security, self-dependence and ease of commuting.
In addition to this factor, the return on investment should also be considered. More and more women leave their home towns and come to metro cities for work and better opportunities. Also, going back to their home town is always an option for most of them. This requires wrapping up the things in their city where they work. Naturally, women home buyers should prefer the opportunity to extract more from the investment made in the property. They can easily do so by investing in developing areas where prices are sure to rise-up in the future. This calls for a thorough research before any property investment.
So, when the women empowerment has become the buzzword around, real estate surely cannot be left behind. It is certainly the best time to promote female property buyers and enjoy the benefits encompassing relaxation in taxation, less cost of female property registration, and ultimately better returns on property.