Investing in a property is always a crucial decision for ordinary Indian people. Before investing in a property, a person usually evaluates many parameters like compare prices, facilities, amenities, locations, materials, etc. so that he can get the best deal while still can save some bucks. This is because there is a plethora of effort and a chunk of hard-earned money is invested in it. In all this, a buyer often failed to notice that there are many ways by which he can get more benefits. Getting joint property ownership is certainly one of them.
Buying an apartment/joint property in India will help you to get many benefits. If you are planning to purchase flats in Trichur or an apartment in Thrissur, always go for joint ownership of a flat. In this article, we are going to discuss some of the advantages of joint ownership of flat. But before entering it, let’s take a look at who can be joint owners in your purchase.
When you are planning to purchase a flat from an eminent builder in Thrissur, you can add anyone as a co-owner of the property.
Father and Son: In this category, both can jointly own the property if the father has only one son. If there are more than one, he cannot become the owner but can be a co-applicant. This is to avoid any potential family dispute after his death.
Father/Mother and Unmarried Daughter: In this case, an unmarried daughter can only be the owner of the property, and either her father or mother can be co-applicants, but their income cannot be considered together.
Brothers: Brothers in a family can be co-applicants and buy a house together. This is allowed only when both stay together in the purchased property and are co-owners.
Father/Mother and Married Daughter
Brother and Sister
Sister and Sister
If you purchase a flat by including a joint owner in the form of a co-applicant in India, you will get many benefits. Let’s disinter some of the benefits of joint ownership of flat.
These days, most of the people usually take a home loan in order to purchase their dream flats or properties. Banks usually consider the take-home salary of the borrower as a deciding factor of the loan amount. Now suppose, if your monthly take-home salary is 1 lakh, the bank will offer you a loan on which monthly EMI could around Rs 50,000. But if you want a higher loan amount, then both the borrowers should apply for the loan. Now, both applicants are earning, then the income of both will be calculated in order to decide the loan amount. This will automatically increase your loan amount. In addition, if you go for a joint loan application, the credibility of the application will also increase as banks consider such cases with a lower or minimal risk of bad debt. But the bank gives preference to those joint loan applicants who are closely related such as parents, spouse, etc. So, if you want a higher loan amount, always go for joint ownership of property.
This is another benefit that you should opt for a joint ownership property. Under the joint property ownership, both applicants are eligible for income tax benefits (both on principle as well as the interest amount). According to Section 80C, and Section 24.
These days, apartments are becoming popular as residential properties and most of apartments or flats are purchased in housing societies. There are many advantages of apartment living. That’s why property experts always give the advice to buy a property in joint possession. This is because, in case of sudden demise or an accident of one property holder, the property can be transferred to the surviving holder without any legal trouble. Now, a fresh property registration is required in the name of the new owners along with the presence of a solicitor. So, if you want to make a hassle-free property transfer, always purchase a property or an apartment in joint ownership.
If you are a single holder of the property, you need to repay the loan at any cost irrespective of your financial status. But in case of joint ownership, the borrower can decide what should be the share of each of the applicants. They can repay the loan amount as per their convenience. If one applicant is facing a financial issue, then that can be managed easily by the other applicants. This is another major advantage that you can get if you go for joint ownership of purchased property. Get some home loan process for under construction flat here.
These are some amazing benefits that you can get if you go for joint ownership of property. But there are certain things that you should take care of if you are planning for joint ownership.
It won’t be a prudent decision for you if you include a non-earning person as a co-owner of your property. In case of unfortunate death of the earning member, the entire loan amount will be automatically passed on to the co-applicant of the home loan. This will certainly create a burden for the person because he/she is not an earning member. Even if the person die with or without WILL, it will take minimum one year to settle the inheritance issue. This will create several legal implications and that’s why it is not at all advisable to include non-earning member as a co-owner of the property.
If you purchase a joint property with your relatives (except your spouse), it will create legal implications in future. So, be aware of the legal implications and always consult an expert before investing a single penny in the property purchase.
Now, you have an adequate idea of the benefits of joint ownership of a property. At the same time, you also need to look at the cons of joint ownership.
If you involve many people in the home loan application process, the bank usually takes more time to complete the documentation process. The process can be repeated twice or thrice depending on the number of applicants. Therefore, you make sure that all the documents that you have submitted are verified and authentic. If the bank finds any flaw or false document, then it can reject your loan application. Also read about some property documents checklist here.
If you go for a joint home loan, you will get enough flexibility to decide whether you or you and your partner will repay the loan amount. Though this is quite beneficial, in case of any default payment, the credit history of both applicants will be tarnished. So, if you don’t want to spoil your credit history, choose your co-owner wisely. And that’s why always choose an earning person as a co-owner of your property.
These are some disadvantages of joint ownership of flat or property, like in the of case of a divorce, etc.
As a whole, the advantages of a joint property certainly surpass its disadvantages. Therefore, you should go for joint ownership of a property if you want to make a hassle-free property purchase. This is the right time to find a person who is trustworthy so that you can venture into joint property ownership for purchasing a property in India.
Thrissur Builders (TBPL) is one of the renowned builders who deliver dream apartments in Thrissur. All of their apartments in Thrissur comes with various modern amenities and also introduces several methods that ensures in safeguarding nature. The flats in Thrissur, delivered by them follow proper water conservation method through rain water harvesting. Thrissur Builders also provide various property management services due to housekeeping, resale and rental activities. We help people to manage their asset efficiently and wisely. We help to do the best investments in Thrissur. To get best property deal, contact us today.