More and more males are buying property in the name of their wife. The question arises- ‘ Is buying property in the name of your wife really advantageous’?
1) When you register property in name of your wife, you get a concession on Stamp duty.
During property registration, a stamp duty is levied which is calculated as a percentage of the agreed value of the property or the property’s market value( whichever is more). The percentage of this duty varies from state to state and if a property is bought in the name of a female then the percentage of levied stamp duty is lower. This duty even applies to property converted from leasehold to freehold. Even in states where the stamp duty is charged as per the region, the female buying the property will get these government concession.
For example in Haryana, a man is required to pay 8% stamp duty in urban areas and 6% in rural areas, while females have to pay 6% in urban areas and 4% in rural areas.
Some other examples of stamp duty concessions for women :-
The Northern state governments are providing partial concession on stamp duty for female property buyers or if she is a joint owner of the property.
What experts say about stamp duty concessions for women :-
So if you buy a property in the name of your wife then you will acquire these stamp duty concessions.
2) You get concession on home loan when you avail it in the name of your wife
If you get a home loan in the name of your wife then below are the concessions you can expect
Banking institutions are providing easy home loans for female home buyers. Like SBI is offering loan at a concessional interest rate of 9.5 percent under the scheme ‘Her Ghar’ for females. Apart from the concessional rate, the bank has also waived its processing fee. For availing this scheme, the female home buyer must either be the sole applicant or one of the co-applicants of the home loan and the sole or co-owner of the property. Also, HDFC Bank in the year 2015 in a move to encourage female home buyers launched their scheme ‘ Woman Power’. In this scheme, the bank provided loans at a concessional interest rate of 9.85 percent. This home loan product could be availed by both joint and sole owners and was also available to females without any income of their own.
Also, female home buyers get rebate on loan interests like
If the property is self-occupied then interest deduction is limited to 1.5 Lakh every financial year.
If the property is rented out, entire interest on the home loan could be claimed as a deduction against the net rental value.
Important news for working females.
These above advantages indicate that buying property in the name of the wife is a good option. So if you have been planning to acquire a property, do it in the name of your wife.