With the perfect time for action, women can now reap numerous rewards from becoming a homeowner. From taking advantage of lower interest rates and tax exemptions to enjoying discounts on stamp duties, there has never been better incentive to invest in real estate!
Save big with slashed home loan interest rates
Women have been traditionally underrepresented in the real estate market, but banks and other financial institutions are making an effort to change that by offering preferential loan terms specifically for women. Depending on the institution, borrowers who identify as female may be eligible for a lower interest rate than those offered to male borrowers—from 0.5 to 1 percent less. This incentive applies to loans for residential properties. While demand is still lagging behind men, women are rapidly catching up in terms of taking advantage of the real estate market. Banks and institutions are hoping their measures will continue encouraging more women to join this growing market of real estate investors. This could very well be the break that many female homeowners have been dreaming of, as lower interest rates mean a more affordable EMI and bigger savings on their loans. In addition, lower home loan interests allow them to repay their loans faster than anticipated.
Reduction in stamp duty charges
As part of the home buying process, there is a certain amount that you pay to the government as stamp duty which can have a considerable impact on the total cost of buying a property. India has recognized the importance of this cost and strives to make it more affordable for citizens. Women in India are charged lower stamp duty fees as compared to men – typically a difference of 1-2%. Furthermore, the stamp duty charges may vary from state to state within India depending on local laws. It is advised then, that potential buyers verify the current charges before committing to any purchase.
Advantage of income tax benefits
Women are able to benefit from greater tax exemption when taking the step of purchasing a home. The incentives for ownership are enhanced if it is placed under the name of an aspiring woman - exemptions from the former tax regime are applicable as well. Further, couples who purchase jointly can claim separate deductions in relation to principal and interest amounts. Not only does this provide an extra savings benefit, but it also shows the opportunity to take advantage of potential financial relief for those wishing to purchase a home in their own name.
Increased eligibility in home loan programs
Home ownership is a great financial asset, and it can give women an added layer of economic security. Building equity from owning a property allows lenders to view them as more credit-worthy, permitting banks and other financial institutions to offer larger loan amounts at attractive interest rates. This means that women can invest in property with less debt and use their hard-earned money for other goals. By having increased access to such funds, this enables them to become homeowners and achieve the long-term benefit of building wealth over time through equity growth. Owning a property is not only about gaining equitable returns, but also about taking control of one’s financial future.
Tangible benefits under the government schemes
The Pradhan Mantri Awas Yojana (PMAY) scheme is an integral part of achieving the Government of India's goal of providing quality and affordable housing to its population. Women, in particular, are given a special preference with various subsidies and incentives. For instance, if women applicants fall under the Lower Income Group (LIG), they can avail of up to a 6.5% interest subsidy on the loan amount up to Rs. Six lakhs. Similarly, if they hold ownership or co-ownership of a property, they can receive a subsidy of up to Rs 2.67 lakhs from PMAY as financial assistance for investment towards their dream home.
Discounts from property developers
India has always been a place where women have largely been held in high esteem. This attitude is also reflected in the way Property Developers are offering fantastic discounts to female homebuyers during special occasions like Women’s Day and other festivals. These offers are extremely advantageous, with discounts on total price, no extra charges of stamp duty or floor rise premium and even free car parking and modular kitchens – all of which grant women the power to purchase a home independently. What’s more, these offers provide female customers the freedom to do so at a fraction of the regular cost. All in all, Property Developers enable women to realize their dreams of owning a home without much financial difficulty.
Planning to buy a home? Contact DRA Homes for help