Buying a home is one of the most critical decisions for a family and any homebuyer, especially in India, where an emotional value is attached.
When choosing to co-own a house with your spouse, it gives you many benefits in the financial aspect as well. Because adding your partner as the co-owner of the home provides your partner with a feeling of ownership, and gives both of you an opportunity to receive additional benefits for the same.
Reduction in stamp duty
In India, many states offer female-friendly policies, especially when it comes to property ownership when listing your spouse as the primary owner. Whereas, when a man solely owns a property, there are high chances of it attracting a higher registration cost as against one owned by a woman. Therefore adding a spouse as a co-owner helps you save on registration fees & stamp duty charges.
Tax Benefits for Both
The Indian Government has started providing a tax redemption on co-owned homes, enabling a home loan borrower to claim a tax deduction for principal repayment under Sec 80C of Rs.1.50 lakh and interest payment of Rs. 2 lakh under Sec 24. This policy is applicable when the property for which the loan is taken has more than one owner.
Ease of Transfer of Ownership
When it is a co-owned property, the succession of the property becomes trouble-free. If it isn’t co-owned and their’s a sudden demise of the owner of the property, transferring the property to their surviving spouse or their legal heir is a gruesome process. It does require a lot of paperwork and a considerable amount of money. However, you can avoid all of this trouble, if the ownership of the property is shared by the spouses, as the surviving one directly has the entire ownership on the property.
Related Read - 11 mistakes first-time homebuyers should avoid
The Feeling of Equality
One of the best advantages of adding your partner as the co-owner of the property is offering them the feeling of equality. These are the emotional values that can never be overlooked, and it does provide them with the feeling of ownership of the property. Moreover, such ventures of jointly co-owning a property sweeten your relationship with your spouse.
These are some of the benefits of co-owning a property with your spouse. It is a fruitful and ethical decision to make that ensures your family live happily ever after!
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