Take the statement, “I bought a new home!” for example.
You made up a male character, right?
Men have held sway over India’s real estate market for decades, but that’s starting to change. These days, female realtors are almost as familiar as male ones.
A recent survey found that 66% of Indian women currently prefer real estate as an investment. Even before the pandemic, the trend was upward, as more women gained economic independence and more people realized the potential wealth in real estate.
It’s wonderful to see women taking charge, and it’s even better to learn about all the perks women who purchase property in India can enjoy. We believe these advantages are a major reason why husbands prefer purchasing homes in their wives’ names, in addition to love and trust, among other things.
In addition to low-interest rates from banks and various government initiatives, the real estate industry provides several other advantages for women homebuyers.
Therefore, the number of women working in this field has increased over the past few years. These days, women play a crucial role in the decision-making process. Let’s take a good, long look at this.
The Benefits of Female Homeownership in India
According to a recent study, nearly 42% of female homebuyers prefer real estate as an investment asset class.
Thirty per cent invested in fixed deposits, while only seventeen per cent bought gold. Banks, real estate firms, and the government have introduced several customer-friendly initiatives in response to the growing number of female homeowners.
A growing number of young, career-focused women previously content to rent are switching to homeownership. The pandemic has only solidified their resolve to become homeowners, which could protect them from any future catastrophes.
Reduced-Interest Loans
Several central banks and credit unions now provide home loans to women at a particular interest rate. Numerous provisions have been made to further encourage female homebuyers by introducing schemes, offers, and initiatives.
Women are encouraged to purchase homes for their families due to these advantages. Women from all walks of life, from entrepreneurs to stay-at-home moms to C-suite executives, can access this assistance. The following are examples of programs that help first-time female homeowners:
The State Bank of India’s ‘Her Ghar’.
HDFC’s ‘Women Power’ campaign.
A loan from Mahila Awas.
Pradhan Mantri Awas Yojana (PMAY)
Women are given preference over men when applying for PMAY. Under the PMAY program, at least one female member of the household must be listed as the property’s legal owner. As part of the PMAY initiative, the government will provide up to Rs. 2.67 lakhs in subsidies to women who are first-time homebuyers and meet the program’s eligibility requirements.
Women who qualify for PMAY’s Economically Weaker Section (EWS) and make less than Rs. 3 lakh per year or belong to the Lower Income Group (LIG) are eligible for an interest subsidy of nearly 6.5% on loans of up to Rs. 6 lakh. The scheme is based on the premise that female investors in India tend to make more informed decisions. The number of first-time female homebuyers has risen dramatically because of PMAY.
Subsidies of up to Rs 2.35 lakh are available to first-time homebuyers through the Central Government’s PMAY, CLSS. Men and women benefit from this subsidy as they scrounge together money for a down payment.
Mortgage rates are lower
Well-known financial institutions like HDFC and SBI actively encourage and welcome female customers. Their interest rates are slightly lower than men’s. Women typically enjoy a 50-100 basis point advantage, with 1 percentage point equaling 100 basis points.
For instance, SBI has a 6.8% interest rate for women and a 7% rate for men. Some might argue that the difference isn’t significant over time, but in today’s buoyant housing market, every bit helps.
Tax breaks
One of the main advantages of putting a house in the wife’s name rather than the husband’s is this. Although tax deductions are generally the same for men and women, filing jointly allows each spouse to itemize their own deductions. You can deduct up to INR 2,000,000 in interest expenses plus an additional INR 1,5,000,000 under Section 80C.
In addition to the other deductions available under Section 80EE, a first-time female homebuyer can deduct INR 50,000 from the principal amount due.
Reduced stamp costs
Stamp duty has been reduced in several states to encourage female homebuyers. These include Maharashtra, Himachal Pradesh, and Uttar Pradesh. There is a gender gap of two percentage points in both Himachal Pradesh and Delhi (6% for men and 4% for women). Jharkhand has a special stamp duty rate of INR 1 for female citizens.
Karnataka and Tamil Nadu have parity in their percentages of men and women, but the state of Karnataka has announced that it will lower its fees beginning in 2021. For properties worth up to INR 20 lakh today, the rate is 2%, while those worth between INR 35 and INR 45 lakh now pay 3%.
Ease Of Joint Loan
Whether male or female, first-time homebuyers can have a tough time meeting the requirements for a mortgage, the procedure is streamlined and simplified when two people apply for a loan together as co-borrowers.
For argument’s sake, let’s say that someone making Rs.1 lakh per year would like to borrow Rs.80 lakh for a house. The loan applicant wanted Rs. 80 lakh, but the maximum loan amount from this lender is 60 times the borrower’s monthly take-home pay.
A person in this situation can quickly get the loan amount she needs from the bank if she applies for it jointly with her spouse, who may earn between 50 and 75 lakh per month.
Summing Up
Recent statistics show that while 41% of female homebuyers are between the ages of 35 and 45, 47% are between the ages of 25 and 34.
As more and more women enter the housing market, many companies are adapting their offerings to meet the needs of this growing demographic. All possibilities include added safety features, a cutting-edge security system, environmentally friendly features, a cafe, a fitness centre, and a medical clinic.
Advantages of being a woman home buyer in India
Take the statement, “I bought a new home!” for example.
You made up a male character, right?
Men have held sway over India’s real estate market for decades, but that’s starting to change. These days, female realtors are almost as familiar as male ones.
A recent survey found that 66% of Indian women currently prefer real estate as an investment. Even before the pandemic, the trend was upward, as more women gained economic independence and more people realized the potential wealth in real estate.
It’s wonderful to see women taking charge, and it’s even better to learn about all the perks women who purchase property in India can enjoy. We believe these advantages are a major reason why husbands prefer purchasing homes in their wives’ names, in addition to love and trust, among other things.
In addition to low-interest rates from banks and various government initiatives, the real estate industry provides several other advantages for women homebuyers.
Therefore, the number of women working in this field has increased over the past few years. These days, women play a crucial role in the decision-making process. Let’s take a good, long look at this.
The Benefits of Female Homeownership in India
According to a recent study, nearly 42% of female homebuyers prefer real estate as an investment asset class.
Thirty per cent invested in fixed deposits, while only seventeen per cent bought gold. Banks, real estate firms, and the government have introduced several customer-friendly initiatives in response to the growing number of female homeowners.
A growing number of young, career-focused women previously content to rent are switching to homeownership. The pandemic has only solidified their resolve to become homeowners, which could protect them from any future catastrophes.
Reduced-Interest Loans
Several central banks and credit unions now provide home loans to women at a particular interest rate. Numerous provisions have been made to further encourage female homebuyers by introducing schemes, offers, and initiatives.
Women are encouraged to purchase homes for their families due to these advantages. Women from all walks of life, from entrepreneurs to stay-at-home moms to C-suite executives, can access this assistance. The following are examples of programs that help first-time female homeowners:
Pradhan Mantri Awas Yojana (PMAY)
Women are given preference over men when applying for PMAY. Under the PMAY program, at least one female member of the household must be listed as the property’s legal owner. As part of the PMAY initiative, the government will provide up to Rs. 2.67 lakhs in subsidies to women who are first-time homebuyers and meet the program’s eligibility requirements.
Women who qualify for PMAY’s Economically Weaker Section (EWS) and make less than Rs. 3 lakh per year or belong to the Lower Income Group (LIG) are eligible for an interest subsidy of nearly 6.5% on loans of up to Rs. 6 lakh. The scheme is based on the premise that female investors in India tend to make more informed decisions. The number of first-time female homebuyers has risen dramatically because of PMAY.
Subsidies of up to Rs 2.35 lakh are available to first-time homebuyers through the Central Government’s PMAY, CLSS. Men and women benefit from this subsidy as they scrounge together money for a down payment.
Mortgage rates are lower
Well-known financial institutions like HDFC and SBI actively encourage and welcome female customers. Their interest rates are slightly lower than men’s. Women typically enjoy a 50-100 basis point advantage, with 1 percentage point equaling 100 basis points.
For instance, SBI has a 6.8% interest rate for women and a 7% rate for men. Some might argue that the difference isn’t significant over time, but in today’s buoyant housing market, every bit helps.
Tax breaks
One of the main advantages of putting a house in the wife’s name rather than the husband’s is this. Although tax deductions are generally the same for men and women, filing jointly allows each spouse to itemize their own deductions. You can deduct up to INR 2,000,000 in interest expenses plus an additional INR 1,5,000,000 under Section 80C.
In addition to the other deductions available under Section 80EE, a first-time female homebuyer can deduct INR 50,000 from the principal amount due.
Reduced stamp costs
Stamp duty has been reduced in several states to encourage female homebuyers. These include Maharashtra, Himachal Pradesh, and Uttar Pradesh. There is a gender gap of two percentage points in both Himachal Pradesh and Delhi (6% for men and 4% for women). Jharkhand has a special stamp duty rate of INR 1 for female citizens.
Karnataka and Tamil Nadu have parity in their percentages of men and women, but the state of Karnataka has announced that it will lower its fees beginning in 2021. For properties worth up to INR 20 lakh today, the rate is 2%, while those worth between INR 35 and INR 45 lakh now pay 3%.
Ease Of Joint Loan
Whether male or female, first-time homebuyers can have a tough time meeting the requirements for a mortgage, the procedure is streamlined and simplified when two people apply for a loan together as co-borrowers.
For argument’s sake, let’s say that someone making Rs.1 lakh per year would like to borrow Rs.80 lakh for a house. The loan applicant wanted Rs. 80 lakh, but the maximum loan amount from this lender is 60 times the borrower’s monthly take-home pay.
A person in this situation can quickly get the loan amount she needs from the bank if she applies for it jointly with her spouse, who may earn between 50 and 75 lakh per month.
Summing Up
Recent statistics show that while 41% of female homebuyers are between the ages of 35 and 45, 47% are between the ages of 25 and 34.
As more and more women enter the housing market, many companies are adapting their offerings to meet the needs of this growing demographic. All possibilities include added safety features, a cutting-edge security system, environmentally friendly features, a cafe, a fitness centre, and a medical clinic.