How Many Properties Can a Person Buy/Own in India?

People interested in investing in real estate in India often wonder, "How many properties can one person own in India?" A popular choice for investors, the Indian real estate market has experienced significant growth in recent years. While purchasing and owning multiple residences, you must fulfil a few legal criteria.

This article will discuss the legal rules and tax benefits related to owning multiple homes in India and provide insights into why people buy multiple houses.

There are no limitations on the number of houses a person might purchase in India. However, certain legal requirements come along with owning several residences. According to these regulations, all properties must be imposed with taxes, including when they are sold. You need to pay additional taxes, including capital gains and stamp duty tax.

Before acquiring the property, you must officially transfer ownership into your name, present identity proof, and verify the address.

Due to its recent swift growth, many people consider investing in real estate in India to be a tempting option. There are various reasons why people purchase multiple homes, although there are no restrictions on the number of properties one can own in India.

This section will explore some of the main motives for buying several residences.

1. Investment Purposes

One of the most popular reasons for buying property is for investment purposes. The potential for capital growth and rental revenue makes real estate in India an attractive investment. Owning several properties can generate a consistent passive income stream.

Also, the value of those properties could increase over time. Investors with the resources can buy multiple homes for a more diversified investment portfolio and a lower chance of loss.

2. Business Purposes

Some people invest in several residences to establish a rental business or use them as guest houses. Buying real estate in well-known tourist areas or urban areas with significant demand for rental units could result in a substantial profit.

Additionally, having several properties can provide you with a competitive advantage in the rental market.

3. Family Needs

Another reason people buy multiple houses is to meet the housing needs of their family members. In India, families often live near each other. Families who desire to live close to one another while keeping their privacy and independence may find a solution in purchasing multiple homes.

Additionally, possessing multiple properties can eventually give the family members financial security.

4. Future Planning

Owning multiple houses can be part of an individual's long-term planning strategy. Having various residences to fall back on in an emergency might give you a sense of security.

Moreover, it can allow retirees to move to a different location or minimise their primary residence while maintaining a second home.

5. Prestige and Status

In Indian society, possessing multiple assets can also be a sign of pride and status. Many famous and high-net-worth people own several residences to symbolise their success and wealth.

Some people use owning several properties to display their economic standing and power.

Several different factors influence why people in India purchase multiple homes. Although there is no restriction on how many properties you can own in India, it is crucial to consider the law before investing in multiple residences.

While there is no limit to how many properties one person can own in India, owning multiple homes comes with legal rules and regulations. 

The Indian government has implemented several laws and policies to regulate the real estate market and protect the rights of property owners. This section will discuss some of the legal rules for having multiple homes in India.

Taxation

Property Registration

Proof of Identity and Address

Foreign Investment

While owning multiple houses comes with legal responsibilities, it also offers several tax benefits in India. Below, we will discuss some of these tax benefits.

• Deduction on Interest Payments: Under Section 24 of the Income Tax Act, a person who has taken out a home loan to purchase a property may deduct up to ₹2 Lakhs in interest payments. The interest deduction has no cap if the property is rented out.
• Deduction on Property Tax: Property owners can also claim a deduction on the property tax paid on their properties under Section 24 of the Income Tax Act.
• Capital Gains Tax: If an individual sells a property they have owned for over two years, they can claim a deduction on the capital gains tax. The deduction is based on the amount invested in another property within two years of the sale.

Conclusion

Owning multiple properties comes with legal responsibilities and tax implications. Keeping accurate records of all income and expenses related to the properties is crucial to claiming tax benefits correctly.

As a general rule, investing in properties within one's financial means and understanding how many properties one person can own in India to avoid legal or financial complications is advisable.