Considering to buy a property? There are plenty of options in the market to consider before sealing the deal. Joint ownership is one such option that an individual should consider. In Joint ownership, a property is owned by more than one person. To be brief, in joint ownership each person has complete hold of the property. In terms of property, both the owners have equal rights in the property and hence, enjoy equal benefits. The person you chose to own your property with, can be anyone, your significant other, your spouse, your parents, children, siblings, friends, colleagues or even distant relatives.

Here’s how joint ownership is beneficial:

Home Loan: If you are considering to get a home loan, you should definitely opt for Joint ownership. It has been known that the Banks tend to consider home loan applications, where the joint owner is a co-borrower and the two are related to each other.

Tax Benefits: Joint ownership of a property comes in with many benefits. If the joint owner of the property is also a co-borrower of the home loan, then the two are entitled to tax benefits. The co-borrowers of a property can claim a deduction on the interest portion of the home loan up to Rs.2 Lac each under Section 24.

Repayment of Principal Amount: Similar to tax benefits, the co-borrowers in a Joint Ownership get many privileges. Under section 80C, the co-borrowers can claim a tax deduction of up to Rs.1.5 Lac each, in the repayment of the principal home loan amount. However, this is only valid if you do not have any other investment or expenditure qualifying for section 80C.

Succession: The transfer of property in the case of single ownership is a complicated process. However, in the case of joint ownership, the process is rather hassle free. In the case of Joint registration, the co-owner is always the successor, minimizing the unwarranted problems in the future.