Benefits as co-applicant for a home loan
The property when jointly owned by the co-owner is a better option rather than singly ownership. When the property is jointly owned both the co-owners have an equal share in owning the property. In the case of both the working professionals both the co-owners can opt for the tax benefits as both are the joint co-owners. The co-applicants can be husband and wife, father and son, jointly owned by brother or sister.etc. The most common form of the jointly owned one’s category are amongst the husband and wife who jointly buy the property in the joint name.
The joint co-owner name of the co-applicant out of which one owner is female helps the property owners save money on registration & stamp duty charges as well as if applied for loans then the borrower can avail interest subsidy on loans in case of women as joint co-owner. As an initiative for women empowerment the Government of India as well as the Finance ministry has decided to take an initiative to increase the number of flats to be owned in the names of the females so that they should become an equal shareholders in cases of the property owned by the males. The PMAY scheme [Pradhan mantra awas yojana] focuses on the flats to be jointly owned by the females or in other case owned by exclusively females for which the government provides higher subsidy in case of the joint co-owner as women applicant or property independently owned by the females.
Following are the benefits of the property being jointly owned by the co-owners:
· Tax benefit on the property where loan is opted for:
The property which is jointly owned the borrowers can avail tax benefits on the loans being availed as in case of both the people having income, both the co-owners can avail the tax benefits in respect of the contribution being done on an individual basis. The borrower should maintain the records of the payment done of the installments to the bank. And should avail the tax benefits accordingly.
· Equal share as joint co-owners:
The joint co-owners share equal share in case of the property as a joint ownership as well as enjoy equal rights as an owner as well as co-owner in case of ownership of the property, purchase related decision, as well as decisions related to the sale of property or any other decisions to be taken as joint co-owners for renovation or re-development of the property. The joint co-owners can also equally benefit in case of the sale of the property taking equal share into their bank accounts as a joint shareholder.
· Equal decision makers in case of the purchase of the property:
The joint co-owners can equally be treated as equal right owners thus both can jointly own the property as co-owners thus has the equal right to select the property as per their own choice as the equal rights owner. The decision related to the selection of location, selection of the floor everything can be taken jointly in case of the equal share being added by the couples.
Subsidy under the government scheme:
The Government of India has launched the Pradhan Mantri Awas Yojana in which the beneficiaries can avail the higher interest credit subsidy in case of the joint women co-owner. Higher subsidy credit transfer is being applied in case of the women joint co-owner. Thus even though if a male person is planning to buy a property on his own name it is highly recommended that the joint co-owner if in case married applicant the borrower while applying for the loan should add the female as co-applicant. The borrower should can save money on installments in case of female joint owners.
· Joint ownership benefit amongst the brothers as co-owners:
The joint co-owners as siblings can benefit as if in case of the single person not being able to purchase the property on own funds then in that case the property can be taken in joint name to stay in a single property. The joint owners can contribute their own funds as well as can jointly own the property by applying for the loans in case of the joint name. Thus sale related decision as well can be taken jointly only if in the case of the property which is required to be sold. The joint finances can help the co-owners buy property in an early stage instead of waiting for funds to get accumulated in order to solve the housing purpose.
Thus we can conclude that there are multiple benefits of the property being jointly owned as a co-owner. The applicant does not get burdened in case of the complete liability been taken in case of the payment of the funds to buy the property or in case of the loan installment liable to be paid to the bank. Also in the case of the co-owner not earning in that case also it is recommended that the joint co-owner should be added so as to avail higher tax benefits in case of the joint owner in the property