Advantages of Buying a Property as a Co-owner

Advantages of Buying a Property as a Co-owner

The decision to buy a home is one of the most important ones in life. It involves a lot of planning, research, and investment, which can be time-consuming but rewarding. Buying a home on your own is difficult, even if you have a large savings account or a decent credit score. That’s why many people opt for joint ownership of property, where they share ownership rights and responsibilities with another person or entity.
So what is joint ownership?
Joint ownership of property means that two or more people or entities own a property together and have equal rights over it. They can be spouses, relatives, friends, business partners, or co-borrowers of a loan.
Sounds amazing, right? But what are the advantages of joint ownership?

Joint ownership can have many advantages, such as:

Loan Payments and Eligibility

One of the main benefits of buying a property in joint names is that it can increase your home loan eligibility. This is because when establishing the loan amount and interest rate, if you apply for a house loan through another person or organisation, the lender will take into account both your income and credit history. This can help you get a more significant loan amount and a lower interest rate than if you apply alone. Having a partner to share the burden of debt repayment can be helpful, especially in trying circumstances like family crises, job changes, and other significant transitions.

Double Tax Benefits

Another advantage of joint ownership is that it can offer you double tax benefits. According to the Income Tax Act, each joint owner can claim a tax deduction of Rs 1.50 lakhs for principal repayment under Section 80C and Rs 2 lakhs for interest payment under Section 24. This means that if you and your co-owner are both eligible for these deductions, you can save up to Rs 7 lakhs in taxes per year. First, however, you must ensure that both of you are co-borrowers of the loan and have contributed to the repayment proportionately.

Stamp Duty Benefits for Women Co-owner

In some states, women can also benefit from reduced stamp duty rates when purchasing a home in joint names with their partners or anybody else. For example, Delhi, UP, Punjab, Haryana, and Rajasthan offer lower stamp duty rates for women than men. This can help you save some money on the registration charges of the property.
In addition, joint borrowers who are joint owners of the property may each claim a deduction up to the restrictions mentioned above according to their respective ownership interests. However, jointly they cannot claim more than the actual amount of the home loan repaid.

Easy Succession of Jointly-owned Property

One more benefit of joint ownership is that it can make the succession of the property easier in case of the death of one of the co-owners. For example, suppose the property is owned jointly with the right of survivorship, which means that the surviving co-owner automatically inherits the share of the deceased co-owner. In that case, there is no need for probate or legal formalities to transfer the title. However, if the property is owned jointly as tenants in common, which means that each co-owner has a separate share in the property that can be transferred to their heirs, then probate may be required to settle the estate.

Let’s Get You Started

As you can see, joint property ownership has many advantages that can make your home-buying process more accessible and more affordable. However, common ownership also comes with some risks and responsibilities that you should be aware of before entering into such an arrangement. Therefore, you should always consult a lawyer and a financial advisor before signing any agreement or contract regarding joint property ownership.
If you are looking for some of the best luxury apartments in Mumbai that offer spacious living spaces, modern amenities, and excellent connectivity, then you should check out MICL Group. MICL Group is one of the leading real estate developers in Mumbai, delivering many landmark projects across the city. So whether you want to buy a property alone or as a co-owner, MICL Group can help you find your dream home at an affordable price.
To know more about MICL Group and their projects, visit their website or contact them today.