Women’s day special: Privileges and challenges for women, when they buy a home

[ecis2016.org] From preferential interest rates to concessions on stamp duty/registration, there are several financial benefits being offered to women property buyers. We look at whether these measures can spur more women to buy real estate and the challenges that remain

When it comes to a women home buyers and investors, they are now getting special attention from the government and banks.

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“As women increasingly become financially independent, their propensity to purchase a home and secure themselves, increases. It has been estimated that 30 per cent of urban property purchasers are now women. Various initiatives by the government and financial institutions, as well as the growing income levels of women in general, have contributed to this increase,” says Shubika Bilkha, business head at the Real Estate Management Institute (REMI).

Special privileges, to empower women property buyers

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Experts points out that there are a number of benefits available for properties registered in women’s names, such as a preferential interest rates offered by some lenders, concessions on stamp duty, etc. “To empower women and to streamline the entire process of home investment, the Indian government has showered various privileges on this community of buyers,” adds Srishti Mehta, director, Paradigm Realty.

“Lower rate of interest, increased likelihood of loan applications being accepted, relaxation in registration charges and lower stamp duty, are some of the privileges that are designed to lend women an edge over men, when it comes to acquisition of their dream homes. Apart from this, women are also permitted to subtract the rate of interest that is paid against the mortgage loan, against the net rental value at the time of renting out their home,” Mehta elaborates.

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Lower stamp duty rates to the tune of 1-2 per cent, are offered in markets such as Delhi, Rajasthan, Jharkhand, etc. If both, the husband and wife, are co-applicants of the home loan, both parties can claim tax deduction on the interest rate paid.

Home loan interest rates for normal borrowers versus women borrowers

Challenges faced by women home buyers

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While these benefits are in the spirit of women’s empowerment, single women still face a number of indirect challenges when looking to buy a home. Firstly, property investments have always been a male’s decision in the family, even though this mindset is gradually changing, with more women actively participating in property investments. With skyrocketing prices, investing in property can often be a challenge for first-time women buyers. Moreover, certain components such as safety, security and connectivity are more imperative for female home buyers, which could require them to make purchases in what could be more expensive developments and neighbourhoods. This then increases the purchase price of the home, for the single female home buyer.

“During the purchase process, there are still instances of discrimination, societies being uncomfortable with single women and female purchasers being subject to greater personal scrutiny while making the application,” adds Bilkha.

Nevertheless, experts maintain that the trend of women home purchasers is only slated to increase and the real estate industry and society should encourage this momentum and provide women with their rightful empowerment.

Source: https://ecis2016.org/.
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Source: https://ecis2016.org
Category: Lifestyle