Real Estate Investment - Women’s Day Special Edition
The present ‘Women of Millennial’ is no doubt - progressive, dynamic and ready to take challenges or responsibilities of all levels. They are confident enough to make decisions for their career and investments, independently.
Change in Perception for Real Estate Investment among Women
In recent times, there is a tectonic shift in millennial woman investment preferences. Along with the gold, FDs, SIPs, real estate is also a new favorite choice in her investment portfolio. With a rising number of working women in India, financially independent women are actively participating in buying homes, both for living as well as for investment purpose.
It is surprising to know that in a recent survey it was found that, the Indian women don't want to compromise on the property sizes and would rather prefer to spacious 2BHK or 3BHK home options to buy.
On the occasion of International Women's Day, we are presenting here an article to help women know their privileges and challenges that they might face while buying a home. We hope this will be helpful to you.
Privileges:
There are many benefits that Indian women can avail for buying or registering property in her name.
1) Lower Rate of Interest
A small reduction on the interest rates gives a big saving on long-term home loans. Home loans fall under the category of priority lending, hence has a lower rate of interest as compared to other types of loans.
Women home-buyers further get a discount on home loan interest rates to the tune of 5-10 basis points. Many banks like SBI, HDFC, ICICI, etc. offer discounted home loan rates especially to women as compared to men, the variation can be near to 1%, depending upon the bank.
2) Faster Bank Loan Approval
Many banks offer faster bank loan approval when the primary applicant of home loan is a woman. The lending institutions carry out their part of loan clearance formalities of the application concerning -income of the applicant, credit score, another bank/loan liabilities, etc. Usually, women applicants are perceived to be less risky and hence loans can be approved in less time.
3) Lower Stamp Duty
It is mandatory for any property to get registered in the local land governing body (under the Indian Stamp Act, 1899) mainly to validate the sale of the property and maintain a record of the purchase. This process requires making a payment through stamp duty by the property buyer. It usually lies in the range of 4-10% of the registered value of the property. This charge may considerably increase your budget set on purchasing a house. In Hyderabad, stamp duty charges are 4% on the property value.
The stamp duty charges are lower if property registration is executed in the name of a woman. As it is a state subject, it can vary from state to state. It might even vary within a particular state, based on the classification of the region as 'Rural' or 'Urban'. So, make a check of stamp duty charges beforehand to avail the benefit.
4) PMAY Benefits
Women can avail an added benefit through PMAY (Pradhan Mantri Awas Yojana), which empowers a woman of a low-income group also to own a house - as per the ‘Housing for All by 2022’ mission. You get a privilege of interest subsidy given on housing loans under the new Credit Linked Interest Subsidy Scheme. In this scheme, under the category of Economically Weaker Sections (EWS) and Low-Income group, to avail this benefit, it is mandatory that a woman should be a sole owner or a co-owner of the property to be registered.
5) Special Discounts from Realtors
Often construction companies or builders would offer special discounts to women home buyers. Discounts to women home buyer should not be the sole factor for buying the home. Although it looks enticing, due diligence is advisable into the property details, before finalizing the deal.
Challenges Faced by Women
Buying a property by a woman is not a complete cakewalk. They too have to bear with some challenges while buying their dream home.
1) Restrictions on Co-Owner Loan Application
While men have the liberty to apply for loans with their parents or brothers as their co-applicants, women do not have that privilege. Only unmarried women can have their parents as co-applicants and married woman co-applying with her mother/father is not easily accepted by lending institutions. It is a lender’s prerogative to approve the loan application of woman as co-applicants.
2) Search for Secured Property
Women usually prefer properties which ensure safety and security to them. Such properties do come with high prices than others. This may put an extra budget burden on sole women property buyers. However, there is reliable property portal like proppick.com, which provides detailed information related to any type of property - Flat or independent house or gated community villa or plots to search and finalize your dream property for residential or investment purpose.
Final Words:
With the evolving socio-economic scenario, Women are rapidly emerging as a critical home buyer segment in India. It is good for any economy when women take an interest in real estate investments.
Property marketers and property developers should re-strategize their business approach to include them as important customers and consumers. However, it is recommended that every woman should act with a lot of caution and thoroughly check all required documents before deciding to buy a home.
Proppick.com - one of the best property portals of Hyderabad where you can easily get a wide range of best and affordable properties of your choice. For more information, you can log on to our city based property searches.
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