- 4 Advantages Of Joint Property OwnershipDecember 30, 2017
Joint ownership of a property assures multiple advantages like tax benefits and increased loan eligibility, while also reducing the burden of the intensive capital investment by sharing the financial liability. And according to the law, one can co-own a property with spouse, parents, children or siblings.
Following are the 4 advantages of jointly owning a property.
1. Increased loan eligibility
Jointly applying for a loan listing the co-owners increases the chances of loan eligibility as when banks calculate the net monthly income for granting higher loan amounts, it will be higher compared to the income of an individual. Also, if there are more than one applicant, it favours the chances as bad debts minimise.
2. Tax benefits
Joint owners of a property can avail income tax deductions on both the principal and interest amount. Also if all the co-applicants are contributing to the EMIs, all of them are eligible to avail tax benefits. In short, a jointly granted home loan helps co-owners avail multiple tax benefits from a single loan.
3. Flexibility in repayment
Joint applicants for a loan ease the repayment process as they allow themselves the flexibility in contributing to the EMIs. The co-owners can devise a strategy on how to proceed with the repayments and to decide each applicant’s contribution towards it.
4. Ease of property transfer
For a property bought in joint possession, the ownership can be transferred to the remaining owner without any legal probes in case of sudden demise of one of the co-owners. All that it takes is the fresh registration of the property in the name of new owners.
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