If you live in an old neighbourhood, take a walk around and notice the nameplates on the houses. Most of them would carry the name of the male homeowner. Take a look at the names in some of the newer areas, and you might notice that some of the houses belong to women.
Culturally, women have always been taught to invest in gold as their first preference for investment, having grown up on traditions that revolve around women, gold, and marriage. However, that outlook is rapidly changing as more women gain financial independence and property laws favour women. There is a spike in the number of women who are now investing in real estate as opposed to other options like gold, fixed deposits, and mutual funds.
The 2019 ANAROCK Real Estate Consumer Sentiment survey showed that 42% of women prefer to invest in property attracted by low home loan interest rates, stamp duty fees, and other benefits.
On this Women’s Day, we give you four compelling reasons why investing in real estate has more long-term advantages than other options.
Income flow
Real estate is not only an investment but also a potential source of income, which can cover the mortgage. Giving your house on rent attracts tax benefits as you are allowed to deduct municipal taxes from the income earned. You also stand to gain from the value appreciation that properties inevitably undergo over the long-term.
Leasing capability
Unlike gold or mutual funds, property has the flexibility to be put into use when needed. For instance, it can be leased out when not in use, which also gives you a regular income. This is a far better use of your capital that comes with its tax advantages too. Moreover, it also does not have the risks of ownership that comes with renting.
Tax benefits for women
Women get a deduction of up to Rs 1.5 lakhs per year when they own a self-occupied home. Stamp duty fees for women are significantly lower in many States, which makes owning property an attractive proposition.
For example, stamp duty charges are 4% for women compared to 6% for men while in Jharkhand it is as low as Re 1 for women compared to 7% for men. Banks also offer low home loan interest rates for women borrowers too. For instance, SBI has the ‘Her Ghar’ scheme aimed at women borrowers with flexible repayment options and special low rates of interest.
Higher security
Real estate has a higher level of security compared to other instruments of investment. Gold can be stolen and has no tax benefits, while mutual funds are risky and unstable. A property, on the other hand, can don many roles all at once depending on your requirement – a home, a source of income, and a long-term investment.
The major benefit the women get by owning the property is the tax benefit and the low registry charges.
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