A penny saved is a penny earned!
Often we come across facts which could have saved our money or benefitted us in some way when water is way under the bridge. Buying residential projects in Bangalore or any city across the country is one such process where delayed information or lack of information may lead to a feeling of being at a loss when you could have availed certain benefits.
Hence making informed decision is very important for good decision making especially when it is about acquiring immovable assets. From choosing the best financing option to eliminating mediators like brokers from the deal and directly dealing with the developer or seller, knowing where money can be saved helps particularly if you are married and have a family to cater to. Hence, jointly registering the property with your spouse is the smartest thing you can do to enjoy following benefits:
The intangible or emotional benefits of jointly owning a property with your spouse are include increased confidence in each other, letting the patriarchal Indian society know you value your wife as an equal, stronger bonding, higher sense of belongingness among spouses etc. Hence, be it a property in Whitefield Bangalore or anywhere else, it will strengthen the relationship further.
Apart from this there are certain financial benefits also:
Corpus: Two incomes will have a higher chunk of disposable income and hence better share for savings rather than a single income. Therefore building a corpus to make the initial down payment will be quicker and easier. This amount is usually 5% to 20% of the total purchase price of the house. Hence the bigger the corpus, the smaller the EMI’s.
Affordability: In most of the cases, a loan is required to buy a house and a higher loan amount is sanctioned by banks if there are two sources of income. And in case of joint registration couples can get joint home loan hence it becomes feasible to buy a better property of your choice even if it is priced a little higher so that you don’t have to compromise on your aspirations.
Tax Benefit: a joint home loan can also be beneficial to both the borrowers and they can claim a tax deduction of 1.50 lakhs of the principal repayment under section 80C and an amount of 2 lakhs for interest payment under Section 24. This makes it ideal for both the borrowers under the Income Tax Act on proportionate basis in respect of the principal and interest paid during a year.
Stamp Duty: In some of the states of India women pay lesser amount of stamp duty along with other charges and the differences if almost of approximately 1% to 5%. This can save you a lot of money and strengthen your position for this purchase, thereby making it yet easier.
Succession: Single ownership can cause a lot of hassle at a later stage of the demise of the owner. The process of getting the property transferred in the successors name involves a lot of compliances and documentation and the death of the owner might not leave the spouse or the successor in this fine emotional state to go through this lengthy process. This is also why it is better to jointly own a residential property.