Self-occupied properties are a valuable asset for anyone. They are not only a place to call home but also an investment for the future. The transfer of ownership in pagdi system is a concept that is unique to India and has its own benefits. In this article, we will discuss the benefits of self-occupied property and the transfer of ownership in pagdi system.
Self occupied property is a property that is occupied by the owner himself/herself. It is a place where the owner resides and does not earn any income from it. A self-occupied property can be a house, apartment, or any other type of property.
The main benefit of a self-occupied property is that it provides the owner with a sense of security and stability. The owner does not have to worry about paying rent or finding a new place to live every few years.
Transfer of ownership in pagdi system
The pagdi system is a unique concept in India that is prevalent in certain regions. In the pagdi system, a tenant pays a one-time lump sum amount to the landlord in exchange for the right to occupy the property for a lifetime.
Also Read : Top 10 Myths About Loan Against Property
The tenant then becomes the owner of the property but does not get the ownership rights on paper. Instead, the ownership rights are passed down through generations by word of mouth.
The transfer of ownership in pagdi system is a complex process that requires a lot of documentation and legal procedures. However, it is a worthwhile process as it provides the tenant with the ownership rights of the property, which can be passed down through generations.
The transfer of ownership in pagdi system also protects the tenant from eviction as the landlord cannot evict the tenant once the ownership rights have been transferred.
Benefits of self-occupied property
- Sense of security and stability: As mentioned earlier, a self-occupied property provides the owner with a sense of security and stability. The owner does not have to worry about finding a new place to live or paying rent every few years.
- Long-term investment: A self-occupied property is a long-term investment for the future. The property can be used as collateral for loans, and the value of the property increases over time.
- Freedom to customise: The owner of a self-occupied property has the freedom to customize the property as per their liking. They can paint the walls, change the flooring, and make any other changes without worrying about the landlord’s approval.
Also Read : Check Out 10 Best Personal Loans in India 2023
- Rental income: If the owner decides to move out of the property, they can rent it out and earn rental income. This can be a steady source of income for the owner.
- Capital appreciation: Property prices tend to appreciate over time, especially in areas where demand is high. As the value of the property increases, the owner can benefit from capital appreciation if they decide to sell the property in the future.
- Tax benefits: The owner of a self-occupied property can claim tax benefits on the interest paid on home loans and the property’s maintenance costs.
- Stability for the family: A self-occupied property provides stability for the owner’s family. It eliminates the need to move frequently, which can be disruptive for children’s education and social lives.
- Sense of ownership: Owning a self-occupied property gives the owner a sense of pride and ownership. It is a tangible asset that they can pass down to future generations.
Benefits of transfer of ownership in pagdi system
- Ownership rights: The transfer of ownership in pagdi system provides the tenant with the ownership rights of the property. This means that the tenant can pass down the ownership rights to their children and grandchildren.
- Protection from eviction: Once the ownership rights have been transferred, the tenant is protected from eviction. The landlord cannot evict the tenant from the property.
- Long-term investment: The transfer of ownership in pagdi system is a long-term investment for the tenant. The value of the property increases over time, and the tenant can use it as collateral for loans.
Also Read : What is CIBIL Score & How to Check CIBIL Score Online in Easy Steps?
- Financial security: The transfer of ownership in pagdi system provides the tenant with financial security. The tenant does not have to worry about paying rent every month and can use the money for other purposes.
- Affordable housing: The pagdi system is prevalent in areas where affordable housing is scarce. It provides a way for people to own a property without having to pay a high purchase price or monthly rent.
- No disputes over ownership: In the pagdi system, ownership rights are passed down through generations by word of mouth. This eliminates the need for legal documentation and reduces the likelihood of disputes over ownership.
- Cultural significance: The pagdi system has cultural significance in certain regions of India. It is a way of life for many people, and owning a property through the pagdi system is considered a badge of honor.
- No landlord-tenant disputes: Once the ownership rights have been transferred, the tenant becomes the owner of the property. This eliminates the need for landlord-tenant disputes over rent, repairs, or eviction.
Self-occupied property and the transfer of ownership in pagdi system are both valuable assets for anyone. They provide the owner/tenant with a sense of security, stability, and long-term investment.
The transfer of ownership in pagdi system is a complex process, but it provides the tenant with ownership rights and protection from eviction. Both the self-occupied property and transfer of ownership in pagdi system have their own benefits.
Self-occupied property provides stability, long-term investment, and freedom to customize, while transfer of ownership in pagdi system provides affordable housing, ownership rights, and cultural significance.
It is important to consider these factors when deciding whether to purchase a self-occupied property or transfer ownership in the pagdi system.