What Are The Opportunities For Women Homebuyers?

In this male-dominant world, real estate investments could see major and significant growth in the number of women investors. In the last few years, the scenario has changed and women are equal advisors in home-buying decisions. This major transition into ‘new age homebuyers’ is a result of a plethora of incentives schemes rolled out by the Government.

In this article, let’s know about the opportunities for women homebuyers in India and the key challenges that continue to persist.

Buying a home is a critical and one of the biggest financial decisions and for some time women have emerged as vital principal stakeholders. Now, their role is not just limited to home selection and decor but much more than that. This is making women’s presence in society stronger and prominent.

With this, the years-old stereotype gets a break where now women are all set to create wealth and widen their investment horizons. Out of many investment options, buying property still tops the list and is the safest investment bet.

As per the experts of the industry and surveys done, it was found the women prefer residential properties and that is visible from the data. But contrary to this, the favourability among men was relatively low to choose real estate over other investment options, such as stock, gold and Fixed Deposits (FDs).

The women are now equally contributing and breaking the tradition of male bastion in real estate. Earlier the decision of purchasing a home for sale, was made by the male members in the family, is now slowly becoming a joint decision with women of the household.

Having a home of own is a symbol of independence and growth in life, that’s the reason that many working women today are ambitious to own a property. To make their personality stronger and showcase their success, women are now having a significant participation in property transactions.    

If we see, women are well-placed in noteworthy positions across sectors and have the financial freedom to undertake big investment decisions such as a home purchase. With career-oriented, high education and financially independent females, they do not want to be treated inferior.  They wanted to be an active part in deciding whether to buy commercial or residential projects. So, now you can see right from the selection process to paying the home EMIs they are doing it all with flying colours.

Until now, women were actively influencing the home-buying decisions but not anymore as they are today financially independent making them enter directly in buying homes. Real estate brings not just a roof over the head but also helps in building stability and a sense of ownership.  Overall, the economically independent women workforce is prudent today and thinks cautiously about their financial planning. And post covid-19, it seems to be the right time to invest in the real estate market.

In these tough times, the market has surely slowed down but still, there was a demand for ready to move in projects. Women investors want to buy ready homes or the residential projects nearing possession in six months.  And looking at the new residential project it has only managed to capture a little share on the popularity charts.

Along with that, the demand for 3 BHK residential flats for sale was observed to be more and they were most preferred. This is because people have realised the importance of having spacious self-owned residential properties as work-from-home is now the new normal.

Moreover, the various tax incentives rolled out by the Government, reduced stamp duties, and lower home loan interest rates have also encouraged women, investors, to take the plunge.

What Are The Opportunities For Women Investors In The Real Estate Sector

Lower stamp duty

Stamp duty is the charge on a property that needs to be paid as the state levy this tax to register a document, typically an agreement or transaction paper between two or more parties, with the registrar.  

Every state had its own rules and percent set for stamp duty and many State governments reduced the stamp duty rates to provide respite to real estate investors. Also, many state governments encourage women to home buying they offer stamp duty rebates to women homebuyers or if the property is under joint-ownership of male and female. 

Reduced home loan interest rates

Home buying isn’t easy and thus, home buying comes to your rescue. This is the right time to buy homes for sale as the home loan interest rates are low. Putting the cherry on the cake, some financial institutions offer additional advantages to female home buyers.     

These discounts vary from 0.05 percent to 0.1 percent, making a huge difference to the interest payable on home loans and ensuring more savings.

Increased Harbour Limits

The increased harbour limits from 10% to 20% have provided more money and gave considerable relief to the homebuyers. Also, to push the sales of property the Central government announced relaxations in the Income Tax (IT) rules.

Some Previously Announced Measures

Reduced GST

GST that stands for Goods and Services Tax has been reduced by the Government on under-construction projects in the affordable category (pegged within Rs 45 lakh) to one percent.  Only five percent on projects costing above Rs 45 lakh and there is no GST charged on ready homes. This has ensured substantial tax savings for homebuyers, and women investors can surely leverage it.

PLAY

PMAY is an abbreviation for Pradhan Mantri Awas Yojana (PMAY) that was introduced in 2015, mandates women co-ownership to buy a residential property in rural or urban areas. Also, if a woman is a first-time home buyer, beneficiaries can avail of a loan subsidy of up to Rs 2.67 lakh.

Property tax rebate

You get property tax rebates as well as certain municipal corporation’s offers in view to benefit the buyers. These rebates may vary across municipal corporations within a state.