InvestorQ : What is the advantage of married couples jointly owning a property?
Tanya Mehta made post

What is the advantage of married couples jointly owning a property?

Answer
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Manisha Mehta answered.
2 years ago


It is very common to see young couples work hard towards buying a home of their own. While some may call it a natural progression of married life, fact is, buying a house, together, is also beneficial from various other aspects.
A house is more affordable when bought together
A couple decides on the budget for a house based on loan eligibility, which is limited by one’s income. However, with double income, that of the husband and the wife’s, the couple can enjoy a higher loan eligibility. In case of a joint registration, a married couple can opt for a joint home loan.
It not only helps share the debt burden between the husband and wife, but allows you to think of houses that would be unaffordable on only one partner’s income.
Do note, however, that this holds true for parents and siblings and not only married couples.
Tax benefit
One of the biggest benefit of taking a joint home loan is from taxation point of view. A joint home loan is beneficial to all co-borrowers, as they can claim a tax deduction of Rs. 1.50 lakh for principal repayment under Section 80C and Rs. 2 lakh for interest payment under Section 24. In the case of two or more people taking a joint home loan, each of them can enjoy tax benefits under the Income Tax Act, with respect to the principal and interest paid during the year. The tax benefit, however, will be proportionate to the share of ownership every co-borrower has in the house.
Lower stamp duty
To encourage women to own a house or property individually or jointly, and in turn to empower women, some states have lower stamp duty rates for women borrowers. For example, in Delhi, a woman has to pay a stamp duty of 4%, while a man has to pay 6% stamp duty. In Rajasthan, a woman has to pay 4% as stamp duty whereas, a man has to pay 5% of the market value.
In succession cases
Each and every one of us has heard harrowing stories of how a family or a partner had to go from pillar to post to get property transferred in their names in case the single owner expired. The entire process of transferring a property is not only lengthy and time consuming, but also emotionally exhaustive.
Multiple hassles can be avoided if the property is jointly owned. Experts advise joint registration of property as the spouse is always the successor. This will prevent unwarranted problems in the future in case of any untoward incident.