When it comes to buying a home, women have long been the influencers when making the crucial decision of buying a property. Typically, women would tend to invest in gold, fixed deposits and other traditional financial instruments. This changed gradually over the years with women increasingly gaining financial independence coupled with several benefits available to women homebuyers in India. In recent times, however, as reports indicate women are increasingly emerging as the key homebuyers. A recent survey by ANAROCK Property Consultants found that of the survey respondents 62% women chose housing as their preferred asset class, which was even more than men.*
Here we take a look at the benefits of investing in real estate, the various sops available for women homebuyer and the things to consider when investing in real estate.
Why real estate?
Home offers stability
Owning your own home will provide you a sense of rootedness and belonging. It’s a safe space to nurture your dreams, build lifelong relationships. Also, as we learned from during the pandemic, having your own home that offers safe haven for your loved ones is crucial for their safety and wellbeing.
Buying a home also means securing your financial independence
Experts’ advice to have a diversified financial portfolio, a mix of physical and financial assets. Buying a home is seen as a safer longer term investment asset, given that it’s not subject to market volatility unlike equity and provides appreciation.
With the many subsidies and tax rebates offered to women buyers, investing in real estate adds to the already existing advantages.
What are the benefits that can be availed by women homebuyers?
Concessions on home loan: When it comes to women homebuyers, most banks offer sizeable discounts on interest rates as compared to men buyers. However, these can be availed if the women is the solo candidate or the primary applicant in cases of joint-ownership. Boosting women buyers in their endeavour to be independent, most banks also forgo the processing fees involved while granting home loans.
Remissions on stamp duty: Stamp duty charges are almost 1-2 % less for women as compared to men in Indian states including Maharashtra, Punjab, Delhi, Haryana and Rajasthan and there is no stamp duty levied for women in Jammu and Jharkhand. Recently, Maharashtra government reduced the stamp duty rates in the state from existing 5% to 2% till December 31 2020 and 3% from January 1, 2021 to March 31, 2021.
The Pradhan Mantri Awas Yojana (PMAY) Advantage: The PMAY provides affordable housing for the urban poor. Under the PMAY scheme, a subsidy is offered by the government with a condition that at least one lady from each household should be registered as a property owner to avail the benefit and it meets other eligibility criteria. This has acted as an added impetus in increasing the number of women home buyers.
Tax privileges: Finally, investment in real estate also attract tax exemptions on home loan principal and interest repayments, as well as tax exemption of in case of affordable housing.
Things to remember while investing in a property
Reason to buy: Firstly, decide on whether to buy a house for self-consumption or for investment purposes. Next, set a budget according to your choice. Based on this, one can decide on other factors like location to invest, configuration, stand alone or gated communities and finally amenities to opt for. If buying a house for investment purpose then choose the location with care, enquire about the rental in the area and also look at the price growth trend of that locality.
Carefully budget: Depending on your income, carefully budget on how much is that you can pay for down payment and what is the component that you can divert towards an EMI of the home loans. Do not stretch your budget such that you are not able to manage your EMIs or are left with no savings. A home loan component should form around 30-35 % of your monthly salary and not more than that if you want to lead a comfortable life. Stamp duty and registration charges, maintenance and other miscellaneous spending should also be accounted while deciding on the budget.
Choosing a ready-to-move-in property is preferable: Whether you decide to buy for self-consumption or as an investment, buying a ready-to-move-in or RTMI property will prove beneficial in multiple ways. For one, you will buy a property after thoroughly inspecting it - check whether the construction quality is good, the fixtures, amenities, etc. are as promised by the developer. This will save you from any bad surprises later. Secondly, you can either move in or give the property on rent almost immediately, you will be saved from the wait and at times uncertainty. Also, you won’t have to pay GST on RTMI properties.
Choose a RERA certified reputed developer: Choose a well-known developer. Caution should be more in case of investing in under-construction projects. Do a thorough check on the developer’s background, the various projects that he has worked in the past on, the quality of construction, the timely delivery of projects, kind of amenities provided and then choose the one which is the best for you.
Shaishav Dharia, Regional CEO, Lodha Group, welcomes Ms. Ashima Bhat , Country Head - Finance, St
As the world of luxury has shifted away from a high price tag and brand/product-centricity and mo
According to a recent report by IBEF, the real estate sector in India is expected to reach a mark
With the new health and safety concerns, homebuyers are now giving more emphasis to the location
Women have been the most significant influencers when making the crucial decision of buying a hom
Lodha Group, India’s largest residential estate player, today announced that it will be launchi
With an emerging need for a low density living accompanied by the necessary social distancing mea
All ancient human civilizations were born and flourished around water. How essential water is for
Mint’s Pivot or Perish webinar held last month focused on the impact of COVID-19
In the past decade, the concept of luxury has experienced an evolution from something that was sy
The right balance between nature and modern infrastructure has inspired people to live in one of
Witnessing the huge demand and the growth prospects, Grade A developers are fortifying their pres
Today, environmental sustainability is key in homebuying and investment decisions. Grade-A develo
Lodha Pay is introduced to provide safe and secure, online payment option to our customers.<
Our homes are safe havens for us and our families. With a significant change in lifestyles and th
A child’s environment plays a major role in their development because it includes the surroundi
Studies show that green buildings can save up to 30% of energy and 50% of water. Builders can swi
A home is no longer just a substantial investment – it offers the security of a much deeper, mo
As a matter of fact, water is becoming scarcer as local sources are constantly depleting and disa
The real estate sector in India has been multiplying over the past few years. With increased popu
When moving to a new city for employment, rather than buying a house people preferred renting a h
According to a report by Investment banker Morgan Stanley, millennials are a key force that drive
One of the finest locations in the city of Mumbai - South Central Mumbai is house to some of the
Owning a home is an essential priority for each individual and an aspiration that one desires to
During the last few decades, we have grown as a company, and a nation, at an unprecedented rate.
Over the past couple of years Mumbai has undergone a sea of transformation. With several key infr
The last two years have been filled with life lessons for every individual. This has been a time
The first commercial tower of Lodha Group’s Palava, recognized as India’s No.1 Liveable City*
Given that real estate is always under scrutiny, it is evident that most people don’t understan
RERA is an Act to establish a regulatory body for regulation and promotion of the real estate sec
With meticulous planning, attention to detailing, focus on quality & great craftsmanship we h
A larger, more popular subject usually overshadows a small one. This can be true for people, plac
Amidst the uncertainty that has engulfed the world, we understand you maybe in two minds about pu
Aside from the obvious financial benefits of home ownership, there are also many social, psycholo
As we start thinking of living in the post-COVID world, there are diverse perspectives on how cit
With the world progressively adapting towards the post Covid-19 lifestyle, consumer needs are als
Lodha Group: India’s No. 1 Real-Estate Developer announces the sale of INR 3000 cro
In these unexpected times where the country is facing simultaneous health and economic challenges
Since the outbreak of COVID-19 pandemic those staying on rent are left questioning their choice.
If you’re in the market looking to buy a house, it’s likely that you may have been charmed by
COVID-19 has made us realise the importance of owning a home. The sense of security and comfort d
A recent consumer research done by Lodha Developers with active home seekers in Mumbai region dur
At Lodha Group, our passion is to create landmarks that meet global standards. Every one of our d