What Are The Challenges And Opportunities For Women When Buying A Property?

Buying a property does not just mean security to lifestyle, but it is also a smart investment option available in the current market. Owning a property comes with benefits like cash flows, long-term wealth creation, tax benefits and appreciation. Properties are among the few tangible assets whose value is appreciating rather than depreciating. But let's face it, buying a house is never an easy task and requires many years of financial planning. For a woman, purchasing a property has its challenges and opportunities.

Here are some of the challenges and opportunities for women home buyers:

Rahul Mehrotra, MD & CEO, RHDFCL

In case of challenges, Mehrotra said, "Despite having a better risk profile than other categories of borrowers, women continue to face many challenges while accessing formal finance. "Some of these challenges include:

Rising interest rates

• Social bias - Women are often underbanked and underserved
• Income gap - Women are mostly underpaid in comparison to their male counterparts, affecting their borrowing.

That said, there are opportunities too for women borrowers. These may include:

• Lenders offer lower stamp duty and lesser rate of interest (RoI)
• Various government initiatives supporting women across states

The future of Indian economy is bright as we are witnessing continuous rise in the women workforce. With the population's average age remaining under 45 years both the economy and women participation are expected to witness an upward trend.

As per CIBIL, women borrowers will grow at 19 percent CAGR in the next five years. Continuous participation of women workforce in the economy is proving to be a major contributors for India's fastest growing economy.

Kamaljeet Rastogi, Chief Executive Officer, Manipal Business Solutions

Women face challenges in buying homes, including gender bias, financial barriers, limited awareness, and safety concerns. Despite these challenges, opportunities abound. Homeownership offers financial independence and appreciation over time. Government support and educational initiatives empower women, increasing their influence in property transactions. Real estate investment becomes a path for women to grow wealth and secure a stable future.

Pramod Kathuria, Founder and CEO of Easiloan

While women encounter challenges like gender bias and financial literacy gaps, government schemes and incentives present opportunities for them in the real estate sector.

The upward trend in women homebuyers reflects positive shifts in India's real estate market, driven by supportive policies and changing perceptions.

As per realty giant SOBHA's website, some of the advantages of owning a house are:

- Profits from property-dependent businesses, rental income, and appreciation are the main sources of revenue for real estate investors. Real estate tends to appreciate over time, so if you make a smart investment, you can profit when it comes time to sell. Over time, rents also tend to increase, which might increase cash flow.

- There are various tax benefits to real estate investing. Under section 80C, one can save up to Rs 1.5 lakh on the principle of a home loan. In a similar vein, section 24 permits a decrease in the required interest payment of up to Rs 2 lakhs.

- Diversification is a choice when investing in real estate. Real estate's link to the other main asset groups is fragile, at times even negative. Real estate may therefore reduce volatility and boost return on risk when it is included in a portfolio of various assets.

- The value of a property rises when market rates rise, enabling the owner to sell the home quickly. With the right upkeep and management, you may create a consistent rental income even if a property's value stays flat for a while. All investors should thus do their homework before committing to a purchase in a certain area.

- A REIT can be profitable in two different ways: First, REITs regularly pay dividends to investors. Secondly, profit from the sale of an investment if the REIT's value rises.

- Investing in high-quality real estate for as little as 15% of the entire cost, putting down a down payment from savings, and getting a mortgage to pay the remaining amount. It implies that even with a small investment, one may still become the owner of the property. It also ensures that a person will only invest a portion of their earnings in real estate.

- Due to the increased use of technology and the need for more comfort and convenience in daily life, there has been a steady rise in the demand for smart homes in India over the past few years. To appeal to clients that are tech-aware, developers are realising how important it is to include technology and smart devices in their projects.

The real estate market has witnessed healthy demand in 2023 despite higher interest rates scenario and inflation still above RBI's medium-term target of 4%. This has led to a substantial increase in home loan rates, and housing prices are higher. However, the current economic growth prospects of India are resilient and steady, raising home buyers' confidence in property investment. The year 2024 is also expected to be positive for the sector, with rate cuts in expectations, home loan EMIs are likely to get cheaper.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.