Buying Property in Husband Name vs Wife Name: Which Is More Beneficial?

Husband Name vs Wife Name: The couple’s first key decision in real estate relates to the retention of property in the name of the husband or in that of the wife. Each name carries with it different connotations; however, naming the wife comes with certain unique financial and tax benefits. Let’s analyze it further.

1. Home Loan Interest Rates

Benefits for Wife’s Name:
When a property is owned fully or partially by the Wife, the bank tends to offer a lower home loan interest rate, usually up to 0.05-0.1% lower, which totally saves a considerable amount over the period of the loan.

Husband’s Name:
If a loan is registered solely in the name of the husband, he will not enjoy this benefit; hence, it is expected to be more expensive in the long run.

2. Stamp Duty Benefits

Wife’s Name Benefits:
Certain states offer incentives for women to own property by lowering stamp duty. For instance, the rate of duty for registering the property in the name of a woman is about 4%.

Husband’s Name:
In contrast, stamp duty for properties held in a man’s name may go as high as 6%. In the case of high value properties, this 2% difference can account for savings in lakhs.

3. Tax Deductions

Wife’s Name Benefits:
For that, if both husband and wife are co-owners and co-borrowers, both can then claim these deductions. An individual can claim up to Rs. 3.5 lakh, but as co-owners they can claim deductions of up to Rs 7 lakh with the provisions of Sections 80C and 24B of the Income Tax Act.

Husband’s Name:
In a single ownership, only the individual deduction can be claimed, thus forfeiting the chance of getting this taxation saving doubly.

Also Read: Ready-to-Move-in or Under-Construction Property: What You Should Buy?

Which Is Better?

For sure, it is not wrong to buy property in the name of the husband: however, property bought in the name of the wife gets so many more financial benefits. From lower loan rates to lesser stamp duty to more tax deduction, these were all avenues for huge savings for the couple. So looking at it from the long-term perspective of finance, property should be bought in the names of the wives.