Things You Should Know, If You Own A Property Jointly with Your Partner
Oct 26, 2017 Home Trading Steps
Having a co applicant in a home loan always help as the loan eligibility increases and also the loan burden gets decreased. But how the deal will actually work in future is hard to predict as there might be some pros as well as cons.
Hence there are several aspects that you should remember while going for a deal like this:
1)In many cases, a single borrower can’t avail a higher home loan amount which restricts him from investing in desired property. Herein a co borrower can be the saviour.
2)In case of working partners, co borrowing can help them save on taxes. As per the I-T Act, both the borrowers can enjoy deductions on the principal amount of Rs 1.5 lakh per year along with Rs 2 lakh in the interest part of the home loan.
3)If someone is co applicant in the home loan that does not mean that the partner is also the co owner of the property. However, under the Marriage Laws (Amendment) Bill, 2010, a girl after marriage automatically becomes co owner of the property that is bought by her husband.
4)It is very important that the property papers clearly defines the share of each co owner in the property. So that there is no space for any confusion and conflict in future related to ownership as well as tax liabilities. However, if a husband wants to give a larger property share to his wife then also he should mention it clearly in the property documents.
5)If the wife is not a co borrower in the home loan despite the fact that she is co owner then, she can’t avail the tax benefits. Hence, it is advisable to the home loan applicants to make their wives co applicants in the home loan application.
6)In case of a joint property, both the owners of the property must declare their income respectively to avail the deductions in their returns.
7)If the co borrower of the home loan is a non earning member then that person should not be made a co borrower. As in such case, if the principal applicant is not able to repay the home loan, the burden will be on the non earning member which will be very difficult.
8)In case of a joint home loan, the credit worthiness of the parties will be impacted if one of them fail to make the payments. For instance, if the primary borrower fails to repay the loan amount then the credit worthiness of the other borrower will be impacted. This, in turn, can impact the loan eligibility of the second borrow in future.
9)In most of the states, women are charged with lower stamp duty rate if the property is registered in their name. Women usually are charged 2 percent less for registering the property.
10)In case of single ownership, after the demise of the owner, there might be conflict related to the distribution of the asset. But in case of the joint ownership, after the demise of the primary owner, the surviving member automatically becomes the successor of the property
Hence there are several aspects that you should remember while going for a deal like this:
1)In many cases, a single borrower can’t avail a higher home loan amount which restricts him from investing in desired property. Herein a co borrower can be the saviour.
2)In case of working partners, co borrowing can help them save on taxes. As per the I-T Act, both the borrowers can enjoy deductions on the principal amount of Rs 1.5 lakh per year along with Rs 2 lakh in the interest part of the home loan.
3)If someone is co applicant in the home loan that does not mean that the partner is also the co owner of the property. However, under the Marriage Laws (Amendment) Bill, 2010, a girl after marriage automatically becomes co owner of the property that is bought by her husband.
4)It is very important that the property papers clearly defines the share of each co owner in the property. So that there is no space for any confusion and conflict in future related to ownership as well as tax liabilities. However, if a husband wants to give a larger property share to his wife then also he should mention it clearly in the property documents.
5)If the wife is not a co borrower in the home loan despite the fact that she is co owner then, she can’t avail the tax benefits. Hence, it is advisable to the home loan applicants to make their wives co applicants in the home loan application.
6)In case of a joint property, both the owners of the property must declare their income respectively to avail the deductions in their returns.
7)If the co borrower of the home loan is a non earning member then that person should not be made a co borrower. As in such case, if the principal applicant is not able to repay the home loan, the burden will be on the non earning member which will be very difficult.
8)In case of a joint home loan, the credit worthiness of the parties will be impacted if one of them fail to make the payments. For instance, if the primary borrower fails to repay the loan amount then the credit worthiness of the other borrower will be impacted. This, in turn, can impact the loan eligibility of the second borrow in future.
9)In most of the states, women are charged with lower stamp duty rate if the property is registered in their name. Women usually are charged 2 percent less for registering the property.
10)In case of single ownership, after the demise of the owner, there might be conflict related to the distribution of the asset. But in case of the joint ownership, after the demise of the primary owner, the surviving member automatically becomes the successor of the property
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