Buying a home is arguably one of the most important decisions of our lives, irrespective of the gender. While it has been considered the responsibility of a man to buy a home, women are fast catching up and breaking the stereotypes.
Whether single or married, women in India are increasingly becoming financially stable and independent. This has increased the number of women as home buyers. Today, women constitute the second biggest group of home buyers in India. This trend is largely visible in metropolitan cities like Mumbai, Delhi, Bengaluru, and Chennai. Interestingly, this trend is also catching up in many tier II cities. According to a Track2Realty report, 32% of buyers across the country are single women, who are contributing to decision-making in about 74% of all real-estate purchases. The cities preferred by women home buyers are Bengaluru, Mumbai and Hyderabad. Facts like these have made the developers and lenders sit up and take notice of this segment and are wooing them with offers and incentives.
Let us look at some of these:
- Lower interest rate: Many Indian banks offer home loans at a lower interest rate, usually 0.25 – 0.50 percent, to encourage women home buyers. Banks such as HDFC and SBI offer discounted home loans. Additionally, several home financing companies have introduced interesting scheme for women buyers. For instance, Mahila Awas loan by Aspire Home Finance provides loans in the range of INR 2 lakh to 12 lakh at a rate of 10-12 percent to women who are not eligible for home loans.
- Housing for All Mission: To empower women from low-income households, the ‘Housing for All’ scheme has mandated that women should be either co-owners or sole owners of affordable houses.
- Lower stamp duty: Women also enjoy the benefits of paying lower stamp duty in many Indian states. Generally, stamp duty for women is 2-1 percent lower than it is for men. However, this can vary from state to state. For instance, in case a property is bought and registered in Delhi, women are liable to pay a stamp duty of 4 percent vis-a-vis men, who have are liable to pay 6 percent. Similarly, in Haryana, women have to pay 6 percent in urban areas while men have to pay 8 percent, and in rural areas, women incur 4 percent as against 6 percent for men.
- Tax deduction: Women are also eligible for a tax deduction to the tune of 1.5 lakh in case the property is self-occupied. Both husband and wife are eligible for income tax deductions if it is a co-owned property. Additionally, for a property that is rented out, the interest on home loan can be claimed as deduction against the net rental value in totality.
Now is the time for women buyers to start investing smartly to ensure financial stability and security for their future. This quick guide is for all the womenfolk planning to buy their first property.
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