Women’s Day: 5 things women should know before investing in property

Planning to buy property is an exciting milestone, especially for women with high-paying jobs and financial independence. According to SquareYards, a real estate marketplace, the number of women homebuyers has increased with 1.29 lakh residential transactions registered solely by women in 2024 in top cities—a 14% increase from last year.

However, it’s important to make informed decisions. We take you through five things women should keep in mind when buying a property.

1.Buying a property early in life

Many women who have high paying jobs are planning to buy a property early in life and that may not be a bad idea.

“If you are buying it for your own use, we suggest that you go ahead and buy,” says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors.

Buying a house makes sense if a woman is confident of steadiness in her current employment and future career growth. In fact, owning a home is a position of strength which can and will have pertinence to many of her future decisions.

“It endows her with a sense of confidence which no other asset can match. However, she should be certain of her ability to service a long-tenured home loan. If she is still starting out in her career, it may be safer to rent until it takes off,” says Santhosh Kumar, Vice Chairman – ANAROCK Group, a real estate services company.

2.Consider budget and affordability

Before buying a property, it is important to assess your overall financial situation. First, you need to make sure that you can comfortably afford the down payment. Then you need to understand whether they can afford the EMI without straining their finances.

As a thumb rule, your EMIs should not exceed 40% of your net monthly income. It is crucial that you avoid stretching your budget as that may put a strain on your finances.

Aditi Mehra, a 30-year-old product manager based out Bengaluru, bought a ₹1.1 crore 2BHK apartment in Whitefield with 80 per cent financing. She manages a ₹80,000 EMI by allocating 35 per cent of her monthly income while maintaining an emergency fund and SIPs in mutual funds at the same time.

3.Buying a property for investment this Women’s Day

“Unless you have everything else, including emergency money, liquidity money, all of that ready, and your borrowing is less than 50% of the value, you should not buy it for investment,” says B. Srinivasan, director and founder, Shree Sidvin Investment Advisors.

The EMI should not be more than the rent you expect to get out of the property, and you should be paying some part of the principal also through that.

“For example, rent returns normally in Bangalore are three to four per cent. And your loan is around eight to ten per cent. So unless and until the investment size is 50% minimum from your pocket, you will end up paying more than the rent as an interest to the loan,” says Srinivasan. So, if you are buying an apartment worth ₹1 crore, you should be able to pay ₹50 lakh up front if you are buying it for investment.

4.Buying a house with spouse

“When buying a house with a spouse, ensure it’s in joint name, split costs of EMI equally if possible or in a ratio that works for both,” says Shweta Jain, founder, Investography, a financial planning firm.

They should make sure joint ownership is clearly recorded while purchasing property with their husband to protect legal rights. They need to keep a neat record of EMI payments and cash contributions to prevent potential conflicts. “It also makes sense to consider a co-ownership agreement with delineated roles and potential exit plans. Both names need to appear on the loan paperwork as well as the property title,” says Kumar.

Rohan and Neha, a Gurgaon couple in their mid-30s, recently bought a ₹1.5 crore 3BHK apartment. With a combined income of ₹45 lakh, they split the ₹1.2 lakh EMI equally.

5.Research your neighborhood

It is also important to research the neighbourhood thoroughly. Look at crime rates, proximity to amenities (schools, hospitals, public transport), and future development plans in your area. You may like to prioritize safety features like well-lit streets. If you are planning kids, prioritize neighborhoods which offer parks, playground, and proximity to schools.

Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics