Benefits of Investing in Real estate in your wife’s name
Men have a tendency to impress women in many ways, to show their love and affection men use all the tricks in the book to woo their wife. Some even buy real estate in their wife’s name.
Apart from impressing your wife by buying property in her name, you too can benefit and the icing on the cake is you will shave off 1 to 2% of the property value.
Some of the states in India to empower women, have launched schemes whereby if you buy a real estate in your wife’s name the stamp duty payable for registration of the property is reduced by a large sum, and this law is applicable even if you gift the property to your wife. In the due course if you wish to sell the property you will gain more profits as the stamp duty paid was reduced.
If the property is registered in your wife name, and for some reason if the husband incurs losses in a business venture or runs into debts, the property in the wife’ name cannot be attached and cannot be sold to pay off the debts and losses of the husband. So your wife in fact safeguards your property and has no bearing on your liabilities and losses.
Presuming you take a home loan in joint ownership of the property, the husband and the wife both can claim tax deduction for the interest paid on loan.
In case the husband owns many assets and properties, registering the house in his wife’s name will reduce his wealth tax liability.
Hence you may have better tax benefits and better gains if you buy real estate in your wife’s name.