FLAVOUR OF THE MONTHin case of any financial issues.
On the other side, there are
some advantages like you can
sell the property whenever you
want, without depending on
the joint owner and your credit
rating is linked only to the
repayment made by you,
unlike a jointly owned
property.
Joint ownership of property
provides certain advantages,
which outweigh single
ownership. Adding a joint
owner helps in enhanced loan
eligibility, as income of all co-
owners is considered while
computing the same. It also
provides tax benefits to both
co-borrowers on interest and
principal repayment, if both
are co-owners of the property.
In addition to these benefits,
succession of the property is
smoother, as most societies
generally transfer the flat in the
name of the remaining joint
holders, without insisting on
any other documentation.
- How can loans be helpful to
budget your home?
Given the prices of properties
in major cities, it's close to
impossible for middle-class
people to buy a property with
only their savings. Home loans
come in handy for such people
and help in buying the property
immediately and then repaying
the loan over a period of next
15-25 years.
Home loan also comes with tax
benefits. The principal portion
of repayment of home loan can
be claimed as deduction from
income under Section 80C of
the Income Tax Act, which has
an overall limit of Rs.1.50 lakh,
in c l u d i n g t h e o t h e r
investments listed under it. If
the property is self-occupied,
then the interest payment can
be claimed as deduction from
income under Section 24 of the
Income Tax Act, upto a limit of
Rs.2 lakh per financial year. If
the property is rented, then
after deduction of interest on
home loan, the loss of house
property can be set off against
other heads of income, as
applicable, upto Rs.2 lakh per
financial year.
If you had bought your first
house property, which was
Rs.50 lakh or less, with a home
loan of Rs.35 lakh or less,
which was sanctioned