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!
