What's trending - Marriage, made in real estate heaven?

Jointly owning your dream home, post you embark upon your marital life could prove to a blissful experience, believe experts.

People always say that happiness when shared is doubled. That is why when a newly married couple, decides to buy their own dream home, there is a different kind of joy that they share that surpasses everything else. There are a lot of perks associated with home-buying, especially when a married couple decides to take the plunge. We get our experts to share some of them.

A joint ownership:

Ronak and Reena Patel, a young couple who recently bought their home believes, "Joint ownership of a property increases the trust in each other. Owning a home to gether, helps in better planning of the future objectives. From arranging the funds for home-buying to paying the EMIs; in each step, both, husband and wife, get a chance to understand each other's financial limitations and accordingly, plan for the future." Joint ownership has several benefits but the most important one certainly is associated with the benefits pertaining to taxes, loans and duties.

Duty benefits:

"Several states (Gujarat, Delhi, Haryana, Uttar Pradesh, Rajasthan, Odisha, etc), offer some relief ranging from one-two per cent on the stamp duty and registration charges, in case the first owner of the property is a female. In fact, Delhi even offers one per cent relief on the stamp duty for married couples, jointly owning a property. For availing such a relief, it is important that the residential unit being purchased, is in the name of the female (firstjoint owner of the property, depending on the state's jurisdiction)," says Kalpesh Dave, Head Corporate Planning and Strategy, Aspire Home Finance Corporation Ltd ­ AHFCL.

Tax benefits:

In case of a married working couple opting for a joint home loan, both spouses would be individually eligible for an income tax rebate upto Rs 1.5 lakh on repayment of the principal amount, under section 80c and upto Rs 2 lakh on repayment of interest under section 24 of the Income Tax Act. "To avail the income tax benefits on a joint home loan, the co-borrower of the loan has to be the co-owner of the property as well. So, if you are a co-borrower but not a co-owner of your property, then you cannot avail the income tax benefits. Co-ownership is mandatory to avail the income tax benefits," explains Jeevan Kumar K C, Head Investment Advisory Services, Geojit Financial Services.

The extent of rebate that can be claimed by both would be in proportion to the contribution made by them towards the repayment of the home loan. One may consider hisher tax bracket individually and can then decide the contribution percentage in the repayment of the home loan.

Home loan benefits:

Experts believe that a joint home loan is always a better option for couples nowadays, especially when the co-applicant can contribute towards the repayment from their income as well. A joint debt is actually a joint responsibility for both, husband and wife and this responsibility in turn, creates a strong bond between them and increases their alertness levels when it comes to the repayment of the home loan.

When a couple applies for a joint home loan, it often increases the borrowing capacity. If one of the applicants has a low credit score, then the co-applicant's credit standing may help in improving the overall borrowing potential.

The age of young married couples works in their favour when they apply for a home loan to a financial institution, as they can get the loan for a higher tenure (20, 25 or even 30 years in some cases). The longer tenure helps in rationalising the monthly installments.

Factors to keep in mind when owning a home jointly:

"A young married couple must understand and chalk out their budget correctly while purchasing a property and the incurring expenses that follow. One has to be practically well-prepared with the expenses to be borne. This involves managing your expenses well, as purchasing a house involves the maintenance fees, mortgage application fees and other financial responsibilities," opines Sushil Raheja, CEO, Raheja Homes Builders & Developers.

Experts also caution against the risk of choosing a joint applicant as both the partners become legally liable in case of any erratic repayment patterns. As they both utilise their full loan eligibility, the possibility of obtaining another loan becomes difficult.

In conclusion:

If you are entering into matrimony or have been enjoying your martial life for a long time, owning a real estate investment together, could reap huge benefits in the long-term. However, do make sure you cross verify all the necessary details before taking the plunge to avoid any hassles at a later stage.

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