Why a calculated risk is paying off for women homebuyers?
A lookup of the Internet today reveals tons of information offering tips to women home buyers. These articles have been created to empower women in making wise investment decisions, in this case in housing or real estate, where they are increasingly making purchases. These articles stand as an acknowledgment of this growing segment of women home buyers and how it is paying off for them.
Women currently make up for 48 per cent of the Indian population of 135 crore as derived in the last census. Unlike ever in the past, women in 2021 are increasingly empowered and have become decision-makers or deal closers, moving ahead from just being influencers. Owning a home today provides for a strong security cover to women, both married and single.
From Gold to Real Estate:
The yellow metal has forever been a woman’s favourite and it will be. But in the present day when buying a home has become a familiar territory among women, a transition too is come about. From assuming a position of being a source of reliable profit gain and creating a possible income flow, real estate offers the added benefits of long-term security in the form of tax rebates plus creating a wider portfolio that goes beyond the love of purchasing gold.
Lucrative Opportunity:
As an investment asset class, owning a home is what Indian women voted for the most in a 2020 consumer sentiment survey by ANAROCK and LIC Housing Finance. The property purchase was followed by women putting their money in stocks, fixed deposits, and gold purchases as a means of investment.
As the number of women making the move to become home buyers only increases, property developers, banks, and the government are all coming up with schemes that make real estate an attractive market for a woman. Benefits exclusive to women are a huge driving force behind this crucial decision that women are easily taking today.
Adding to the list of reasons to own a home, the pandemic changed the course of lives and attitudes increasing the desire towards living in an owned space. This is a change that is visible in the cities and metropolitan clusters be it the Mumbai Metropolitan Region, Delhi NCR, or Bengaluru. In urban India, women who are both well-educated and gainfully employed are taking advantage of the various schemes laid out by the Government of India.
These include increased loan availability, attractive interest rates for women, and the advantage of the lower stamp duty in some states. In some states, the ownership status – sole or joint ownership of the property – notwithstanding a partial stamp duty waiver is given. Women are also entitled to a tax rebate on the interest paid on home loans, giving them that added advantage and encouragement.
Calculated Risk:
Home buying is a calculated risk, but women today are independent and making better decisions when it comes to purchasing their own. A combination of financial independence and the initiatives from lenders and financial institutions mentioned above have sealed their aspirational value of buying a dream home. Cheaper prices and credit means using fewer savings are leaving home buyers with an additional buffer.
Comfortable Investment & Repayment:
Women have increasingly realised that the security and sense of owning property is a risk that is calculated, but worth taking. Housing finance generally has a down payment of about 20 percent of the home cost and the balance of 80 per cent is arranged through the lender. Women can today avail of high loan amounts along with a longer repayment window.
Some financial institutions have ensured conditions as simple as being an Indian national aged between 23 and 58 with 3 years of work experience. A loan of Rs. 1 to 2 crore with a 20-25-year repayment window is now a reality. This allows women to indulge in large ticket size of the investment and along with a long-term commitment of repayment, while also releasing pressure and allowing for other commitments to be met while the loan is being repaid. The options of an early foreclosure with additional charges etc. also come as a bonus.
Rental Income – Reaping Investment:
Investment in real estate for many women is also reaping value on their investment through renting homes. Property gaining capital appreciation along with rental income is a return on investment that many are opting for. This investment in the long-term is seen as asset creation that guarantees regular fixed income in the present or during the retirement age or a settling age that can also be passed on to a child or heir if and when the time arises.
Home buying is an investment that pays off well for the meticulous and thoughtful woman. The availability of the choicest of homes, closer to where you want to be – workplace or parent’s home – also eliminates the problem of feeling intimidated and the availability of simple loan options takes away the jitters of fulfilling the real estate dream. The time is just right with homes and avenues to get it both available.
The author is Director - Marketing, Sheth Creators
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.