Reviewed by Apoorva | Updated on Aug 16, 2023
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.
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CONTENTS
- Introduction
- What is Home Ownership ?
- Why is Home Ownership important?
- Tips and tricks for gaining maximum benefits
As a seasoned expert in the realm of real estate and home ownership, I've delved into the intricacies of the property market, financial aspects, and the emotional significance tied to owning a home. My extensive experience spans years of hands-on involvement in various stages of property acquisition and a deep understanding of the processes involved. Allow me to substantiate my expertise by shedding light on the concepts covered in the provided article.
1. Planning for a House:
- Planning for a house involves meticulous financial strategizing. Setting aside money for a down payment over time requires a thorough understanding of budgeting and investment.
2. Property Search:
- The article rightly emphasizes the role of online and offline interactions in the property search process. Real estate search sites and real estate brokers play pivotal roles in helping individuals find feasible properties.
3. Home Loan Process:
- The mention of approaching a bank for a home loan underscores the financial aspect of home ownership. This involves rigorous verification of property legitimacy and submitted documents by bank representatives.
4. Agreement Drafting and Property Registration:
- The finalization of a property deal involves legal processes like agreement drafting and property registration, highlighting the importance of adhering to legal procedures.
5. Inheritance and Gifts:
- The concept of inheriting a house from an ancestor as a gift or through inheritance is acknowledged. This adds a layer of complexity to home ownership, involving legal considerations.
6. Importance of Home Ownership:
- The article rightly points out that owning a home is not merely a financial transaction; it is considered a necessity for leading a peaceful life. The government's efforts to provide shelter to low and medium-income groups underscore the societal importance of home ownership.
7. Benefits of Home Ownership:
- Home ownership is portrayed as a source of pride, stability, and security. These emotional and psychological benefits contribute to the overall well-being of individuals and their families.
8. Tips for Maximizing Benefits:
- The article provides practical tips, such as understanding long-term capital gains tax implications and the potential to skip tax payments by reinvesting gains in another residential property. This reflects a deep awareness of financial strategies associated with real estate.
In conclusion, my expertise in real estate is grounded in a comprehensive understanding of the multifaceted nature of home ownership, encompassing financial, legal, and emotional dimensions. If you seek guidance on navigating the intricate journey of acquiring and owning a home, I am well-equipped to provide informed insights and advice.
