Introduction
Home ownership, basically, means owning a house. Owning a house comes in several steps such as planning for a house, setting aside the money required for downpayment over a period of time, looking out for a property, bargaining, applying for a home loan, agreement drafting, and property registration. Each of these stages may take a good amount of time; therefore, planning early will help achieve home ownership quicker and with ease. In another case, you may get the ownership of a house from an ancestor as a gift. The property might be passed on to you through inheritance.
What is Home Ownership ?
The term 'home owning' is not just home buying or investing money on a home, it means much more. Home owning is considered as life's biggest investment for most of us. The process of owning a home involves interacting with a lot of people online and offline to collect information and advice. For example, consider the stage of searching for a feasible property. You would start the search on a real estate search site or by talking to a real estate broker. He would take you around to show properties under his listing. You check out the property, locality, price, legal paperwork, and other factors before you settle down with a property.
Once you finalise a property, you make a down payment to the property owner to confirm the deal. You, then, approach a bank for availing finances required to make the remaining payment to the owner. The bank representatives verify if the property and the papers you have submitted is legit. The loan gets sanctioned. You make payment and register the property on your name.
Why is Home Ownership important?
Basically, owning a home is considered a necessity to lead a peaceful life. That is why the government of India has consistently been trying to provide shelter to the low and medium-income groups. In addition, it gives a sense of pride, stability, and security to the individual who owns the home and his family.
Tips and tricks for gaining maximum benefits
- A real estate property, such as a home, increase in value with time. It acts as equity and adds up wealth.
- Check out the terms under the long-term capital gains tax so that you do not end up paying taxes.
- If you sell a residential property after holding it for more than two years, you may have to pay LTCG tax of up to 20%. You can skip this tax payment by investing the gains earned on another residential property.
