Women Homebuyers in India

Several woman-centric initiatives to encourage women homebuyers have been introduced in India

It sounds almost historical when a woman had to wait until marriage to move out of her parents’ home and rely on her husband’s income, and consider his home as hers – by default. Today, being a woman is not a limiting factor anymore to your homeownership ability or rights.

According to a NAR report, in the US married couples dominate the homeowners market with a share of around 54 percent, followed by single women who rank amongst the second largest group of homeowners at 18 percent. Even in developing countries like India, the scenario is changing.

#Around 24 percent of women hold the post of senior executives in India and 30 percent of them are the sole earning member of the family. Such women with higher incomes constitute the fifth position among homebuyers in India.

# According to a report on Track2Realty, around 74 percent of women act as a contributor or an influencer when it comes to buying a home, with a share of around 32 percent as single women homebuyers. Thus any woman with a good credit score, secure job, organized budget, and enough savings can join the growing market of women homeowners.

Here are a few tips to help you prepare to buy your first home:

# Maintain a good credit report: If you are planning to buy a home, the first step is to check your credit report. This report includes your financial information from the past few years, be it an education loan, car loans, credit card accounts or any other loans you may have. Make sure you have been paying EMIs in a timely manner (before due date), which will reflect positively on your credit report as well. However, if you have any adverse accounts in the report such as late payment records, it should be legitimate, as banks will likely ask questions about them.

# Plan your budget: Before getting into numerous house listings available on the internet, think about your budget. Figuring it out would not

only help you manage your expectations but it will also streamline the house search within your affordable limits. Once you decide the price point for

your home purchase, it’s time to start saving for the down payment. Study the market, there are multiple down payment options available to choose from, depending upon your budget. The next step includes sharing your financial details with the bank and checking your eligibility for a home loan.

# Consider insurance coverage: When it comes to purchasing a home, insurance coverage always helps. If you are an independent woman, it becomes more of a priority to shield yourself from unfortunate incidents, be it unforeseen medical expenses or sudden unemployment issues. Hence, you should definitely consider getting life insurance, disability insurance (if a case of accidents), health benefits and other possible insurance options. As with anything in life, hope for the best but prepare for the rest, even in the case of buying a home.

# Get an expert opinion: As a woman, you may face gender discrimination and biases from real estate agents. So, don’t hesitate to get an expert opinion before you start the house hunt. Start independent research, read reviews, ask for referrals to find the right professionals to work with, who help you understand everything you need to know about buying a home. However, many realtors and developers are recognizing the single woman homebuyer as a valuable potential customer.

# Plan for the future: The house you are planning to buy should fulfill all your requirements just not the present but the future as well. For example, it might not always be a good idea to purchase a large house if you are a single mom with young teenagers, as your kids will eventually move out after growing up and you may not require that much space. In that case, you need to consider the resale options as well. A larger home also requires more maintenance.

# Advantages of women homebuyers: The government and banks have introduced women-centric initiatives to encourage women homebuyers in India. Under the Pradhan Mantri Awas Yojna (PMAY), the ownership of the house should mandatorily be in the name of female members of the family.

Few more advantages of being a woman homebuyer in India include:

# Benefits of PMAY-CLSS scheme: All homebuyers availing the credit-linked subsidy scheme [CLSS] under PMAY for purchasing homes, will get the benefit of reduced goods and services tax (GST), i.e. 8 percent instead of 12 percent. The reduction in GST along with the interest subvention scheme will result in a significant amount of savings when purchasing homes under PMAY-CLSS.

# Lower interest rates on home loans: Many banks offer lower interest rates on home loans to women homebuyers.

# Tax deduction: Women are also eligible for a tax deduction of Rs 2 lakh on the interest paid on home loans.

# Concession on stamp duty: Women homebuyers benefit from having to pay lower stamp duty in many states. (For example, in Delhi and Haryana, stamp duty for women buyers is 2 percent lower.)

Home buying is not an easy process and it can be a bit long and tiring, and sometimes frustrating. To own a home is an experience of a lifetime, a proud achievement, and if you are a woman, it’s almost like an accomplishment in “today’s scenario”. So, if you have overcome the odds to rise in your career, save up and buy a home for yourself. Enjoy! You’ve earned this.

Note: The content was generated for a real estate platform.

Credits: Prop story