Real estate in India has seen several resets in the past couple of years, and the pandemic has only served to accelerate it further. Second homes which were hitherto very aspirational and a means to invest a surplus of funds, have now become the norm for a majority of Indian buyers. With cities getting increasingly chaotic, second homes serve the purpose of an alternative abode, a place to go to over the weekends with family, somewhere where nature and calm surrounds you.
Every one of us dreams of a home to run off to every once in a while. Sea-facing, close to hills or mountains, or surrounded by orchards and rivers are just some of the expectations we design them around. While many of us grew up with just dreaming this dream, so many today have been able to make this a reality. Vacation homes for a majority of us, especially those well settled, having lived and worked in bustling cities, is a dream that resonates with our true selves.
Owning a second home versus making do with one
Whether it is an investment choice or just the need to escape to another abode, building or purchasing a second home is a wise move. It does involve the usual hassle of building construction, doing up the interiors, taking care of amenities and sprucing up the surroundings and ensuring it is well looked after all the year through. But when the effort culminates in a place you can call your own, it is well worth the effort. However there can be thoughts crossing your mind about whether all the effort is worth it?
White Elephant or Earning Family Member
Second homes can be both a blessing and a curse, the latter if you’re not happy with your decision or the costs far exceed the investment (both tangibles and intangibles). What then are the decisions to be taken about the second home and how does one go about it?
- Second homes are an added expense as you probably know by now. If you’re making use of it between you and your family, benefitting from its shelter and place to escape, it is already giving you returns. Figure out how often you use it through the year, and match it against spends for caretaking and general upkeep.
- Second homes are almost always a culmination of a dream, deeply personal and emotional. It is where you’ve done what you wanted, put together decor and interiors you always imagined, designed it the way you’ve always envisioned. Figuring out whether it is really worth the effort to keep can be a biased decision but one necessary to take.
- Second homes can be a mental preoccupation. Constantly worrying about paying bills, checking on the home, maintenance and care can take their toil over time and a home that should actually bring happiness can seem like a white elephant you are grudgingly carrying around.
Despite all of these thoughts, second homes can be a blessing as shared by homeowners who have made theirs a valuable earning member.
Businessman Raja Varma whose second homes – Villa 270° in Dapoli, and Suvarna Sangam in Udupi – are exclusively managed by SaffronStays, shares his experience.
Way back in 2013, before I retired from my corporate life, I decided I need to have my own second homes. In 2015, I acquired 3 such properties. While my family was enjoying them, maintaining them turned out to be a big challenge in terms of the fixed costs. As luck would have it, I met the company’s founders through a common friend. They explained the company’s business model to me. Initially, I was reluctant but reached out to them after a couple of weeks.
As a homeowner it is natural for thoughts like this to cross your mind. Here’s a way to make your second home a valuable earning member.
- Partner with a trusted vacation rental partner who takes care of things for you.
- Keep it with you but rent it out whenever you wish to get income that offsets the cost.
- Let someone else manage your risks, help your space get occupied and make it earn for you
- Let your second home give you a sense of joy, instead of becoming burdensome and a financial weight.
- Give someone else the joy of experiencing it as much as you.
