1. Co-owning the property is always beneficial because one of the co-owner either husband or wife dies, the surviving spouse automatically becomes the sole owner of the property.
2. If the couple or joint owners have taken a housing loan in their joint name, each can claim tax benefit u/s 24 of the IT. Act and also separately claim the tax benefit u/s 80C for repayment of principal under housing loan up to-i lakh each.
3. According to the Transfer of Property Act, a co-owner has a proprietary right to the entire property. So any transaction needs to be done with the consent of all the owners, unless specifically mentioned in the agreement. The co-owner has full rights to decide whether to reside in it, give it out on rent, or even sell it. Whenever the house is sold, the co-owners will have to pay tax on the capital gains earned by them. In case of second owner, the capital gains will be computed on the basis of the market value of the house as on the date that it was sold or gifted to him.