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Smart Investments: The Benefits of Joint Property Ownership

Purchasing real estate properties in India requires substantial money, and saving this amount is challenging for someone with an average salary. Even if you save for years, inflation can make it hard to afford your dream home while still young. Traditional home loans might not cover the total cost of the house you want, either.

Smart real estate Investments

This is where joint ownership comes in, especially in Real Estate India. Joint ownership means teaming up with others to buy a property together. This way, you don’t have to invest all the money alone. It’s clever because it makes the financial load lighter and opens more real estate options that might have seemed out of reach.

In India, joint ownership taps into the concept of close-knit families and shared responsibilities, making property ownership more manageable. Joint ownership can make your home-buying dream come true and overcome the hurdles of inflation and limited loan amounts. With joint ownership, your dream of owning a home, even in the face of economic ups and downs, becomes more achievable, giving you financial security and personal satisfaction. 

Eligibility to Share in Joint Property Ownership

Joint ownership of a residential property is open to all. As per Indian law, it can involve your parents, siblings, children, spouse, or anyone you choose. Moreover, someone can be a co-owner regardless of their employment status. This means they can still share ownership with you even if they’re not earning a salary.

This arrangement offers the benefits of shared home ownership while allowing you to manage the financial responsibilities on your terms. It’s a flexible and inclusive approach that ensures you’re not alone in property ownership, and you can adapt it to your unique circumstances. Whether it’s family or friends, joint ownership provides a way to make property ownership accessible and mutually beneficial.

Let’s look at the top four benefits of shared property ownership.

Enhanced Loan Eligibility

Joint property ownership has several advantages, including improved loan eligibility. The chances of getting a more significant house loan increase when you work with a family member or relative because of the higher combined gross monthly income. Investing in top residential properties with larger price tags that could be out of reach with individual earnings is very helpful. Let the lender know upfront if you want to co-own the property with the relative you are applying for a mortgage. Lenders find it more convenient to authorize more considerable loan sums in this way.

Benefit from Tax Benefits 

If you and a member of your family jointly own a home, we have fantastic news for you. Under Section 80C of the Income Tax Act of 1961, you and the other co-owner are each eligible to get tax advantages of Rs. 1.5 lakhs on the principal repayment of the mortgage. Under Section 24, you two are each eligible to claim a tax deduction of Rs. 2 lakhs for the interest paid on the mortgage. 

Simple Property Transfer

These days, more and more Indians are purchasing brand-new flats as opposed to purchasing or building standalone homes. Due to this, real estate and legal professionals advise purchasing apartments with one or more family members as co-owners. In this way, the property will be handed to the surviving owner(s) without any problem if one co-owner of the flat passes away due to old age or an accident. All required is a new apartment registration with a real estate attorney. 

Shared Responsibility and EMI Payments

Joint ownership distributes the financial responsibility among co-owners, making the burden of EMI payments more manageable. Each co-owner can contribute a portion of the monthly installments, aligning with their financial capacity.

Joint Ownership Vs. Crowd Funding

There is a distinction between crowdfunding and joint ownership, although both involve multiple individuals coming together for a shared purpose related to property or investments.

Joint Ownership

Joint ownership is when two or more individuals collectively own a property or asset. This can involve family members, friends, spouses, or business partners. Each co-owner typically holds a specific percentage of ownership, which might be equal or proportionate to their financial contribution. Joint ownership is often used for real estate purchases, and all co-owners share the property’s responsibilities, costs, and benefits. It’s a direct and tangible form of ownership, with the co-owners having legal rights and obligations related to the property.


Crowdfunding involves raising funds from many people, often through online platforms, to support a specific project or venture. While crowdfunding can be used for various purposes, including creative projects, charitable causes, and business startups, it can also be applied to real estate.

In real estate crowdfunding, individuals contribute money to a more significant investment fund managed by a crowdfunding platform. This fund is then used to purchase and manage real estate properties. Contributors typically don’t have direct property ownership but instead, own shares in the investment fund. Returns on the investment are distributed among the contributors based on their share of the fund.

In summary, joint ownership directly involves co-ownership of a property, with legal rights and responsibilities shared among the owners. Crowdfunding consists of contributing funds to an investment pool, with contributors owning shares in the investment rather than directly owning the property.

Wrap up!

The journey towards homeownership can be challenging, especially for those on a single income or average paycheck. However, individuals can unlock the advantages of shared investments by embracing joint ownership of real estate properties in India.

With increased loan eligibility, tax benefits, and simplified property transfer, joint ownership presents a viable solution to turn property ownership dreams into reality.

So, why not embark on a journey of discovery? Unleash the potential of joint property ownership, harness the many possibilities within India’s vibrant real estate, and set a steady course toward a solid financial future.

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