Jointly owning a property comes with certain intangible benefits. It elevates the status of the wife in society and creates a long-term commitment and better bonding between married couples. You should also be aware of the financial advantages of jointly acquiring the property.
Holding a property jointly allows the homeowners to enjoy certain benefits on stamp duty. It is for this reason that women in certain states are encouraged to hold property jointly. The stamp duty rates are reduced by 1-2% when they jointly hold the property. For instance, the stamp duty for a woman in Delhi is 4% of the market value, while that for a man is 6%. In Rajasthan, women have to pay 4% of the market value as stamp duty, while a man has to pay 5%.
The loan eligibility determines the budget to purchase a property. This is decided based on the income and it has certain limits. When you go for a joint registration, you can apply for a joint home loan. The debt burden is shared between two people. This helps in obtaining a higher amount of loan, as the creditors consider the incomes of both the people. You can obtain a joint home loan by applying along with your spouse, siblings, and parents.
A joint home loan comes with certain tax benefits for all the co-borrowers. They can claim a tax deduction of INR 1.50 lakhs for the principal amount under Sec 80C and INR 2 lakhs for interest payment under Section 24. When two or more people acquire a home loan, each of them can individually opt for the tax benefits. As a result, the tax deduction will be higher.
Joint ownership between the couples also becomes beneficial while dealing with succession. In case a property is owned by a single person, transferring property can be a time-consuming and lengthy process. The procedure to obtain the documents in the name of the successor involves excessive conformation of the rules and regulations. Although people often go for shortcuts and unethical means while transferring the property, however, the process becomes simplified when you go for joint ownership. It can reduce the paperwork and other related hassles to a great extent. It is wise to go for joint ownership, as in these cases, the spouse becomes the successor. This keeps off unwanted problems in the future, after the death of a person.