Why You Should Buy A Home For Your Mother On Mother's Day

While buying a gift for your mother on Mother’s Day, you should carefully choose something which she needs and which she would cherish. But, it is difficult to beat giving cash while gifting, unless you are sure your mother would still have bought the same gift if you had given her cash. Yet, this need not make buying a gift for your mother on Mother’s Day a pointless exercise. You could, of course, give her a gift she would have loved, had she been aware of it. Why is a home one of the best Mother’s Day gifts?

1. When you buy gifts for your relatives, acquaintances, boss or employees, it is almost impossible to beat cash because you perhaps do not know what they love. But, you know your mother really well, perhaps better than she knows herself. While buying a home, you can choose according to your mother’s needs, preferences and inclinations. You would know what she had always wanted.
    
2. You want your gift to have a tangible impact on your mother. Unlike many gifts, a home is a tangible asset. Unlike many tangible assets, your mother can hold this because the value of a home is likely to appreciate and because even if the value of a home depreciates, it will still generate income while your mother holds it, if she rents it out.
    
3. Most gifts do not beat cash because the donors often do not care whether it is of any value to its beneficiaries. The value of most gifts would depreciate over time. If you gift your mother a computer, its value would steeply decline in a few years or even months. But, the price of a home is expected to appreciate. If you buy a home after weighing the prospects of price appreciation, it would be one of the best gifts you can give her. There is no better way to signal your commitment toward your mother than by carefully researching the market, tracking price trends in the neighborhood, policy changes and the sentiments that economic growth brings.
    
4. By gifting your mother a home, you are granting her ownership to a piece of immovable property. Property ownership among women is very low in India though there are strong reasons why you should buy real estate in India in the name of your mother or female partner. If you buy a flat in your mother’s name, she would be eligible to a tax deduction of Rs. 2 lakh on home loan interest rate. By renting out the apartment, your mother can deduct the interest paid on the home loan against the net rental value. Many banks also charge a slightly lower rate of interest if a woman takes a home loan. But, you would still save substantially on the total interest paid. By buying a home in your mother’s name, the stamp duty would also be 1-2% less, in many Indian states.

On PropGuide.com, also read A Mother’s Day Message About Buying Property, Why Women Should Buy Homes This Akshaya Tritiya, and How Interest Rate Cuts Affect Your Home Loans.