India’s dynamic real estate market offers many investment opportunities across residential, commercial, and industrial sectors. Amidst this, the growing significance of women’s participation in real estate investment marks a transformative shift. Over the past few years, women have continued to find a path to financial empowerment in real estate. As societal norms evolve, real estate investment becomes a crucial tool for women, offering wealth creation, financial security, and active economic participation.
According to a Track2Realty survey in major cities, 70% of women prefer real estate as their first investment. Single women can allocate up to 60% of their income to property, and 74% actively participate in home-buying decisions. These statistics underscore the increasing engagement of women in real estate, highlighting its role as a crucial avenue for financial growth and empowerment. In this blog, we delve into the specific advantages of real estate for women buyers in India, aiming to empower and encourage more women to explore and thrive in this dynamic sector.
Stamp duty, a government tax on property transfers, has significant financial implications for real estate investors. Women in real estate must understand its impact on overall costs. States like Maharashtra, Himachal Pradesh, and Uttar Pradesh actively support women homebuyers with reduced stamp duty rates in accordance with the Stamp Duty Act. In Himachal Pradesh and Delhi, women pay 2% less stamp duty than men. Jharkhand charges women only INR 1 for stamp duty.
In Karnataka and Tamil Nadu, the percentages are the same for both women and men. But Karnataka has recently reduced fees in 2021 to 2% for properties up to INR 20 lakh and 3% for those between INR 35 and 45 lakhs.
Women in our country also benefit from a concession on property registration charges. Specifically, they receive a discount on stamp duty charges if the property is registered in their name. This policy works to promote gender inclusivity in property ownership. Notably, men pay about 2% extra to get their property registration documents stamped compared to women. This initiative encourages women’s active participation in property transactions and contributes to reducing gender disparities in real estate transactions.
One of the benefits of investing in real estate for women is preferential interest rates on home loans, with popular banks like HDFC and SBI offering slightly lower rates for women compared to men. On average, women enjoy a 50 to 100 basis point advantage, where 100 basis points equal 1 percentage point. For instance, SBI charges 6.8% interest for women and 7% for men.
While the difference may seem small in the long run, it becomes a valuable advantage in the growing real estate market, providing women with a welcomed discount and financial relief. This underscores the positive impact of prudent financial decisions for women engaging in real estate, making property ownership not just feasible but also a pathway to sustained financial well-being.
Understanding the importance of home loan eligibility is crucial for women venturing into real estate investment. Thanks to women-centric policies advocated by financial institutions and government initiatives, female borrowers benefit from higher eligibility. Typically, loan eligibility is based on individual salaries, but when couples co-own a property, both incomes are considered, automatically increasing eligibility.
This not only makes it easier for women to secure larger loan amounts but also enhances their purchasing power, broadening their choices and enabling more informed real estate decisions. This increases the advantages of real estate investments for women in India and contributes to a more dynamic and inclusive real estate landscape.
Effectively navigating the tax landscape and understanding the tax benefits is crucial for women immersed in real estate investment. Women in real estate can have exclusive tax deductions and exemptions tailored to improve their financial advantages. These specific provisions, including deductions on property taxes, mortgage interest payments, and exemptions on particular capital gains, not only provide immediate relief but also serve as incentives for active participation in the real estate market.
Joint property ownership, especially in the wife’s name, offers unique tax advantages, allowing separate claims for deductions. For instance, under Section 80C, an additional INR 1.5 lakh can be claimed, along with INR 2 lakh on interest payments. Additionally, a first-time woman home buyer can claim INR 50,000 on the principal under Section 80EE. These benefits provide immediate relief and incentivize women’s active participation in real estate, making it both a wealth-building and tax-efficient strategy.
The Pradhan Mantri Awas Yojana (PMAY) is a significant government initiative designed to simplify property ownership for women in India, adding to the advantages of real estate investment. According to the scheme’s guidelines, at least one woman must be an owner of the property, and subsidies of up to INR 2.67 lakh will be granted. Additionally, the central government is actively promoting the welfare of the Economically Weaker Sections (EWS) and the Lower Income Group (LIG) through PMAY by providing a 6.5% interest subsidy to women in these categories.
Any woman can benefit from PMAY, irrespective of her marital status. Since its inception, the scheme has led to a substantial increase in the number of women property buyers in the country. This reflects the success of PMAY in facilitating affordable homeownership for women and aligning with broader national goals.
Asset diversification is one of the advantages of real estate investment. Real estate is a significant component in empowering women to create a diversified and strong investment portfolio. Having real estate alongside traditional assets such as stocks and bonds helps reduce the risks associated with market volatility. The relatively low correlation between real estate and other financial instruments ensures its performance remains independent, providing stability and reducing overall investment risk.
Women in real estate can build a well-rounded portfolio that appreciates in value and withstands fluctuations by strategically incorporating real estate, which offers stability and long-term growth potential. This approach improves financial strength and helps them better navigate the dynamic landscape of investment opportunities.
Financial security is a major benefit of investing in real estate, particularly for women. Real estate is a fundamental pillar for women’s financial stability, offering a stable and appreciating asset for long-term wealth accumulation. It also becomes a source of financial stability, crucial for resilience against economic fluctuations.
Real estate investment allows women to balance portfolios with both commercial and residential properties, potentially generating passive income and realizing capital gains. In essence, the advantages of real estate investment, emphasizing the benefits of investing in real estate, play a pivotal role in securing financial well-being and empowerment for women.
In a nutshell, there are a lot of advantages of real estate investment for women. It means paying less tax when buying a property, getting better interest rates on home loans, and even special advantages under government schemes like PMAY. Beyond saving money, investing in real estate helps build long-term wealth and provides a stable financial foundation through property ownership.
It’s noteworthy to highlight that real estate investment contributes to financial prosperity and plays an important role in women’s empowerment. To navigate the real estate industry wisely and contribute to your financial empowerment, you can consider exploring the G Square Housing Website. With a profound understanding of the industry dynamics, G Square can empower you to make informed and strategic decisions in real estate, ensuring a pathway to financial prosperity.
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