Golden River, villas in Vellore by B&B Properties

Four Advantages of Real Estate Ownership

The following key factors are commonly accepted as the major reasons real estate continues to be a good investment. For the majority of real estate participants, these factors are the most critical issues in a real estate venture.

  • Real Estate is a Necessity: Real estate is at the very core of human existence. We all have three important basic needs: food, clothing and shelter.  Our world continues to expand as more and more people are being born every day. In addition, there continues to be larger migrations of people from rural areas to more populated locations. Therefore, people will always have the need for temporary lodging, permanent shelter and places to conduct business.   
  • Hedge Against Inflation:  Inflation is the invisible force eating away at the purchasing power of our rupees. A rupee, however, doesn’t buy today what it once used to.  It is also evident that the quality of goods our rupees purchase is also diminished. For instance, the standard masala dosa and the filling inside has become progressively smaller year after year. Or, when we purchase a box of our favourite snack, the bag is practically half empty.
    From the tenant’s perspective, rent seems to go up the and anyone on a fixed income may find it difficult to keep up with the cost of living increases.  The owner of the property also feels the effects of inflation in the form of increased property-related expenses, taxes, utilities and maintenance costs.  As property costs rise, owners typically pass these costs on to their tenants in the form of increased rents and fees. Furthermore, as inflation increases so do property values; owners will often benefit from the property appreciation.
  • Production of Income:The most attractive and lucrative reason for owning real estate is in its ability to produce passive income for the property owner.  Rent is accruing daily while payments made by the tenants pay down debt balances and produce predictable profits.  Once the property is free and clear, the portion of income that was once used to service the debt payments now goes into the owner’s pocket.
  • Appreciation in Value: Due to inflation, property appreciates in value.  Usually, this statement is generally true.  While there are no guarantees, if care is taken with regards to timing of the acquisition and trends in the overall marketplace, real estate tends to perform well when inflationary conditions are flat with some moderate expansion.

B&B Properties’projects are built in selected and strategic locations which show the promise of appreciation over years. This has been proven time and again by the way all our projects have appreciated in value. If you are looking for plots in Vellore, or villas, contact us to find out how you can realise that dream of yours. 

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