Benefits of opting for Joint Ownership

Buying a property is not all about choosing the right location, looking for amenities and accessibility and transport facilities in the area. There is more than what meets the eye when it comes down to purchasing the property. The factors that make property buying in Mumbai and other metros a hassle range from financial deadlocks to legal issues. A number of these factors, however, can be nullified to an extent by opting to get into the property purchase as a joint ownership with your spouse or your parent(s).

In today’s economy, joint ownership always makes more sense and even the government is well aware of the fact and that is why our government offers a number of incentive benefits while going in for a Joint Ownership. Stamp duty and registration charges are much lower in such cases which clearly suggest that the government is promoting the case for a joint ownership.

With the property in Mumbai and other metros clearly rocketing sky high, it becomes next to impractical, let alone being impossible to buy an apartment or a villa on a single person’s income. Financial burden is shared when joint ownership comes into play and the initiatives of the Indian Government for women empowerment also means that the interest rates could be lower.

Joint Ownership of a property does not come in a ratio and promotes equal rights to the title for both parties. Hence, it is suitable for couples and in fact could strengthen the bond early into married life. Another huge advantage would be that in the unlikely event such as the death of a person would entitle the other owner to completely inherit the property without having to face any legal tangles.

Loan repayments can be done either by both parties separately or by holding a joint bank account. The loan eligibility also becomes higher since the calculation is done by combining the salary of both the parties instead of just one. Both owners can also claim tax benefits which is a huge advantage for any salaried individual.

The entire of the stamp duty will be waivered off if in case the property is jointly owned by a woman. In a few states in the country, if in case a joint owner dies, if the other owner happens to be the spouse, the procedure for transfer of ownership is very simple. The property is not treated as an addition to the surviving owner’s property list which makes tax calculation simpler and more profitable for the surviving mate, making it easier to survive the loss.

Also, flats in Mumbai that are owned jointly are easier to pledge if it happens to be the need of the hour. Banks and other financial institutions are ready to take up joint ownership properties since they have more security of getting back the money since twice the number of repayment individuals are present. 

Also, if the repayment is done without any arrears, future borrowing on the property becomes child’s play making it a profitable venture for both the parties. So, choose wisely on how you register your next property!