“She did not ask him if he owns a house, she was rather curious to know if he liked her home”
This shift in paradigm is the new trend in an arranged marriage. A house is not just a financial investment for a woman, but it also denotes her individual stature in society, besides being someone’s daughter, wife, sister, or mother.
Moreover, involving an active set of the population will only raise the real estate market in India. With these intentions, many policies have been initiated in the last few years that have shown a considerable drive-in women investor. If you want to be one of them or have women in your life who can be encouraged to buy their own house, here are a few reasons why female investors should invest now:
Initiatives for Home Loans
Ever since the debate about the gender wage gap, women are trying to find their foothold with equilibrium in work-reputation. Amidst this, owning a home has become a matter of regaining their worth.
Several financial institutes have initiated policies that allow women to avail home loans at a lower interest rate than male peers. ‘Her Ghar’ by the State Bank of India, Women Power by HDFC, and Mahila Awas loan are some of the successful schemes that encouraged women to avail home loans at lower interest rates as per standard. Such rates have prompted women to buy homes, with affordable EMIs and manageable personal finance.
Besides, the first process of filter starts by determining the eligibility factor for home loans. For this, if you are co-purchasing a house with your spouse, both salaries are accounted for before sanctioning a loan.
Home loans issued to women are on an average 50-100 basis points lower than the average rate.
Tax Plans for Women Homeowners
As mentioned above, co-signing on a home loan will also yield both spouses’ tax deductions under Section 80C and Section 24. While Section 80EE and 80EEA benefit first-time homebuyers.
Even if the home is not in your name, you can still enjoy tax deductions on your salaried inflows.
Which is why, many women opted to enter the real estate investment as it would benefit the married couple, financially.
In summation: Women are eligible for a tax deduction of about INR 2 lacs on the interest they pay for the loan. Meanwhile, if they rent out their property, this deduction is also applicable to the interest paid against the net rental value.
Recently, some states have hiked the stamp duty on owning a property. Whereas, to encourage women investors, most states such as Telangana, Maharashtra, Delhi, Punjab, Uttar Pradesh, and many more have retained an average of 4% of stamp duty on the property– which is, on an average, 2% lesser than the general stamp duty.
In the case of joint owners buying a property, the stamp duty charges are as follows:
● 5% on properties above Rs 35 lakhs.
● 3% on properties between Rs 21 lakhs and 35 lakhs
● 2% on properties less than Rs 20 lakhs
These conducive initiatives have made it possible for several women to embark on their real estate investment journey.
Pradhan Mantri Awas Yojna (PMAY)
This initiative by the government made a huge impact on the participation of women in real estate investment. Some of the main clauses include-
– It is mandatory that at least one woman is registered as the owner of the property under the PMAY scheme.
– The government provides subsidies up to Rs.2.67 lakh if a woman is registered.
– For the economically weaker section (EWS) and Lower Income Group (LIG- if the earning is less than Rs. 3 Lakhs per annum) — women can avail up to 6.5% interest subsidy on up to Rs.6 Lakhs on the total loan.
– Under the Central govt’s PMAY, Credit Linked Subsidy Scheme (CLSS): first-time homebuyers can avail around Rs.2.35 lakhs subsidy.
Impact of these policies on the real estate trends:
– One of the reasons why there is an influx of women investors is due to the unpredictable covid times that have necessitated a contingency plan. More women want to take charge of their lives and help out their families.
– According to the National Association of Realtors Data of 2020–
Out of all the first-time homebuyers, 19% were women and 17% were recurring buyers. More astonishingly, single women were at large in engagement for housing-related searches (as per Housing.com and Makaan.com reports). On an average, women in the age group of 18-33 years have been active in real estate investment.
– As empowerment, these schemes have led women to stand on equal strata, thus redefining the real estate market of India. This has also helped in clearing out negative connotations against single women in cooperative societies.
Aurobindo Realty is one of the top real estate developers in Hyderabad who have encouraged women homebuyers, with no prejudice in their home-buying experience. They provide consultation and expert help for female investors.
So, let this journey to women empowerment continue with an exponential influx, and take your step to independence as well.