Almost every other individual has dreams of owning a home which he/she can come back to at the end of the day. For making this dream come true, people spend a large amount of money or take loans. Regardless of the government promoting joint property possession, many individuals don’t pick that choice. Joint property possession is extremely gainful for the co-proprietors from multiple points of view.
Since relatively few individuals know about joint ownership, they pass up the advantages.
There are two kinds of co – ownership-
- Tenants in common: This is the kind of co-proprietorship in which at least two individuals co-possess the property yet their offer is not mentioned particularly. All the co-proprietors are equivalent accomplices thus every co-proprietor may utilize the whole property. If one of the co-owner dies then the interest will be passed on to the nominee.
- Joint-tenancy: In this sort of proprietorship at least two individuals possess a property and if there should be an occurrence of death of one of the proprietors, the interest of the deceased is passed onto the surviving joint-proprietors.
Here are some advantages of co-owning a property:
- Stamp duties: In many Indian cities, stamp duties are lower for women borrowers. In New Delhi, for instance, women have to pay 4% stamp duty while it is 6% for men. However, if both own a property, this will be 5%. In Haryana, this is 8% for men and 4-6% for women.
- Loan eligibility- One of the biggest advantages of co-ownership is that loan eligibility goes up exponentially since there are joint incomes being considered.
- Tax Benefits- There are tax benefits that both parties can get on principal and interest repayments annually. Deductions are allowed up to Rs. 1.5 lakh on the principal repayment under Section 80C which also includes stamp duty deductions. Deductions are allowed up to Rs. 2 lakh on interest repayments under Section 24. Both owners can get this tax benefit which results in double savings for a family.
- Succession- In case of death of one owner, the property will always remain secure since it will pass onto the other owner.