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View Poll Results: Do you believe in owning a holiday home anymore?
Yes 59 23.60%
No 191 76.40%
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Old 20th August 2017, 16:19   #16
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Default Re: Do you believe in owning a holiday home anymore?

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Originally Posted by smartcat View Post
[*]You rent out the holiday home by listing it on AirBnB when you are not using it. Your holiday home has to earn rental income, without which it does not make that much financial sense. If you like AirBnB, why not explore the "other side" and rent out your holiday home? You might need to hire a trustworthy local to clean up the holiday home, before handing it over to a guest. But this expense will be negligible when compared to the rentals you receive via AirBnB. [/list]
Smart indeed!

A friend of mine has actually listed his holiday home (located on the outskirts of Mumbai) on AirBnB and a few other places. Seeing the positive response he actually quit his full time job and is now dedicating his time to various other things, while his asset (that was once lying idle) has become a steady source of revenue. IMO converting a family-owned, existing holiday home into a means to generate income does seem lucrative.

However, buying a new place in this day and age with ever-increasing land and other incidental costs, especially considering the various challenges as pointed out by others like upkeep, security issues, etc. for investment or to enjoy once on a quarterly or bi-annually basis, makes it less viable. Then the fact that there are several properties already out there for travelers to hire and enjoy their vacation stress-free, just makes buying a new holiday home an unattractive proposition.

Last edited by S2!!! : 20th August 2017 at 16:42.
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Old 20th August 2017, 16:32   #17
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Default Re: Do you believe in owning a holiday home anymore?

I voted for 'No' too. I have used AirBnB 4-5 times over the past 9 months across different cities in India and have found them very useful , economical and reliable.

I bought a small piece of land near Ooty about 7 years ago, and the idea was to build a small 2 BHK wood house, with gardens around and the works and have a good time 3-4 times a year for short and quick vacations, but i am now convinced it doesnt make sense to plonk money to build there, and isnt worth the efforts to maintain this as well.

Clearly, the Apps have taken over and the type of deals we get these days are very beautiful.
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Old 21st August 2017, 12:22   #18
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Default Re: Do you believe in owning a holiday home anymore?

I have voted - Yes

Though I would say it totally depends upon what you are really looking for. For us (me and wifey) it was to have a place which we could call home.

And yes it costs money to purchase and upkeep, but it is a keeper and one where over the years memories worth much more will abound, right from the buying process to decorating it, to the moment you decide to rent it out and all the priceless moments you will spend there.

We searched a lot and finally found one at an idyllic village in Goa.
But of course, it is Goa! I feel the location of your dream second home/vacation home / retirement home is crucial. It should be a place which strikes a chord with your heart. Not just investing your money but an investment of feelings too, because that is what will last for a lifetime.

The first few years we didn't rent it out to anybody, we used to spend a few hours cleaning it whenever we went.
Finally this year we decided to take the plunge and have contracted a property management firm for the upkeep and marketing. It has already started giving us good returns and it keeps the option for us to visit whenever we want (no cap on no. of days).

Yep it will be the very same place, but its home and that feeling is way different from renting out different properties.
We know the people around, know our way around the locality - good hidden spots etc. etc. The benefits are way too much and I am not even referring to appreciating rates.
Since almost all our travels are by road, this also serves as a stop-over point if we are traveling down south and a place which we don't need to think twice.

Currently we are in the process of developing our other vacation/retirement home, and this one will be available for rentals from day 1. This will ensure the cost of maintenance is taken care of and we can enjoy when we want to.

As we live, we will travel and go places, maybe many places but there will be a few where you will return and keep returning to.

Last edited by Trojan : 21st August 2017 at 12:26. Reason: Added a line
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Old 21st August 2017, 13:40   #19
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Default Re: Do you believe in owning a holiday home anymore?

Interesting discussion, something I've been pondering for a while.

The concept of a holiday home is enticing, given that you have chosen that place because it strikes a chord and symbolizes a "holiday", it is a place you can head to to be at peace.

I've been giving this a thought for a while and on occasions, seriously wanted to have a beach-side property because for me, heart is where the beach is!

A close relative has a farmhouse in Lonavala and this is what I've learnt observing how they've managed it.

1) It should be a quick driving distance: it should be a place you can decide to drive to without too much thought. For me, that is 3-4 hours; anything more and I'm going to wonder if it is worth the trip.

Given that we at most have weekends, 3-4 hours is a good distance that allows you to enjoy your destination.

2) Cleaning/upkeep: This relative has over the years come across a reliable local guy who has the compound (but not house) keys. His job is to mow the lawn, clean the swimming pool, sweep the courtyard and make sure everything is working well: the electricals, water pumps, light bulbs etc. etc.

Finding this guy is crucial, a professional property management firm is another solution.

3) Rent out decision: I am firm that I will not rent out a holiday home, should I have one. I know it is absolutely financially foolish as it has a tremendous potential to pay itself back if rented; but if it is my "home", I don't want strangers in treating it as a hotel.

A slight analogy is my decision to buy cars brand new, against some serious reasons to buy pre-owned.

4) Set up: this person travels from Mumbai to Lonavala at least once, if not twice, a month to make sure everything is in order. First tasks are:

a. Order water from a tanker as there is no municipal water connection
b. Clean the inside of the house
c. Have power backup

5) Now you can't get a maid or cook at such short notice so when he's there, he has to cook and clean

6) You have to maintain a proper house setup: chairs, tables, beds, cutlery, linen etc.

But there are some tremendous upsides that probably negate all the perceived hard work:

- Having your own house in Lonavala. A stay during the monsoons is magical
- There was a family wedding that took place and there's something very beautiful about having a wedding with 100 close family/friends at your house

I do see some serious reasons why not though:

1) The ability to rent out really nice properties at different places every time you want a holiday
2) Cost burden if it is taken on a loan, and/or it is not rented out

So, would I indulge in one? Probably. Especially since I can probably make an outright purchase (although might still take a loan to keep reserve cash).

The thought of having my own little place by the beach -
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Old 21st August 2017, 15:17   #20
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Quote:
Originally Posted by libranof1987 View Post

The thought of having my own little place by the beach -
I would advise against getting a property by the beach. It does sound very good though the chance of it getting encroached upon is very high.
When I was looking for land in Konkan, many people in the region advised me against buying a property next to the beach. It was suggested that if I plan to run a resort then and only then should I buy it next to the beach. That is the reason why I bought mine about 15 mins drive from the beach.

Last edited by Aditya : 24th August 2017 at 16:41. Reason: Typo
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Old 21st August 2017, 15:48   #21
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Default Re: Do you believe in owning a holiday home anymore?

I have voted NO. My family and I like exploring new properties whenever we go out and having a holiday home would kind of restrict that. Example in Mahabaleshwar, we have stayed in 7 different properties and each one gives its own unique experience. Goa we have only repeated the Taj Aguada and Lalit couple of times and that too primarily for weddings.

We also had a home in Nashik which we used to use once in a while but then eventually gave it on rent. The rental was quite minuscule compared to capital value and hence we sold that off. So now it's just Mumbai and hotels / apartments everywhere else!
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Old 21st August 2017, 19:30   #22
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Default Re: Do you believe in owning a holiday home anymore?

My family had "holiday homes" in places around the city as my great grandfather didn't like staying in one place for long.

The one in Matheran was sold to a guy who made it a hotel - we couldn't afford to maintain it and couldn't do much to prevent people from encroaching on the property.

Still hold on to one in Panchgani (part of the property however has been sold) and one near Devlali for sentimental reasons.

GTO - since you mentioned Devlali, my problem with that place is that the town is not the same as the place I remember from my childhood. Its just not the same town anymore.

I would not invest in a "holiday home" today as these places sometimes change a bit too fast. So you think you've bought a house in a nice quiet place and then in a few years you have a mall next door!
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Old 22nd August 2017, 09:52   #23
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Default Re: Do you believe in owning a holiday home anymore?

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Originally Posted by theqca View Post
GTO - since you mentioned Devlali, my problem with that place is that the town is not the same as the place I remember from my childhood. Its just not the same town anymore.

I would not invest in a "holiday home" today as these places sometimes change a bit too fast. So you think you've bought a house in a nice quiet place and then in a few years you have a mall next door!
Great point! Imagine those who bought a house close to the main road in Lonavla back in the 80s - today, they'll see flyovers right outside . And the ones who got a place on the (then lonely) road to Bhushi Dam will have a mall + traffic nightmares outside their house.

I still like Deolali though as a lot of nice places have opened up and there's lots to do, but not enough to own a house there.

Incidentally, Mom just called yesterday from Deolali saying "there's leakage from the upper bedroom and you need to fix it" . I'm never one to procrastinate, yet I don't think that task will make it to my to-do list anytime soon.
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Old 22nd August 2017, 10:10   #24
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Default Re: Do you believe in owning a holiday home anymore?

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Originally Posted by smartcat View Post
If the decision to own a holiday home is based on emotional or lifestyle reasons, then it does not make sense - thanks to AirBnB. However, if the decision to own a holiday home is based on purely FINANCIAL reasons, then it still makes sense.
I have to strongly disagree! Holiday home is a worse financial investment than any other real estate investments. Unless you have a fantastic location (maybe something like next to Taj Mahal), you will be just able to meet your maintenance expenses with AirBnB. I know quite a few people who own holiday homes in Mahabaleshwar (right from apartment flats to independent bunglows) and they make money only in the peak summer season. Rest of the time, they barely get bookings for a couple of weekends a month. Initially everyone has enthusiasm to visit but after 2-3 years, you cannot keep going to the same place where you don't have any emotional ties, friends, relatives.

Regards appreciation and sale, the properties are mostly unsaleable. Do check out the number of houses for sale in Mahabaleshwar. With the current RE slump, you would be lucky to make back your capital. The only person making money here is the builder.

IMO, holiday home makes sense only if you are rich. So you have 100cr and 2-3cr here-there makes no difference to you. Or you have some strong ties to the place, maybe its your native place, maybe you grandmother or relative stay there - so you will be visiting over the years. But even then its a luxury.

Last edited by Rudra Sen : 22nd August 2017 at 10:51. Reason: typo corrected
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Old 22nd August 2017, 10:23   #25
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Default Re: Do you believe in owning a holiday home anymore?

Personally I'd rather spend my annual holiday budget on a nice vacation in an exotic locale than build a holiday home. For investment purposes in real estate, it is always land/plots for me. Spending money on a holiday home is a useless investment.
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Old 22nd August 2017, 11:16   #26
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Default Re: Do you believe in owning a holiday home anymore?

True, almost all scenic and beautiful places will not be the same a few years from now. That's why choosing the right place is important, having a mall next door might not necessarily be a bad thing - that means its bang at the epicenter of activity and that means money - no peace of mind though.
At such a juncture, the owner should look for either converting into a commercial set-up or sell it to someone who would do the same.

Honestly speaking, what has happened to Lonavala & Khandala was bound to happen, snuggled between two rapidly growing cities, especially Mumbai. From my point of view, 80% of all properties in Lonavala and Khandala are totally unplanned and bad investment - lured by real estate biggies. Remove them and you have a lovely hill station back to its glory.

If one is keen to buy some property, they should stay away from the core areas and usual hotspots, buy somewhere in the outskirts of such touristy places, that will guarantee you some peace before the mayhem reaches - which eventually will, but how long are we going to keep running away.

Thankfully and finally now people are becoming more aware, even authorities are now hesitant to grant permissions.
Digitalization has brought everything under the scanner and its no longer easy to purchase a mountain slope or a beach front land to develop into your dream home. In 2003, the area around Pawana lake was barren, the Lohagad Boat Club was a small shack selling only tea and poha, mountain slopes were being sold for as low as 3-4 lakhs per acre, there were only 2 big properties I guess, one belonging to the Choksis and the other to the Shroffs. I don't think that's possible now.
I would still say it is a very good idea but like all other investments, this needs a lot of thought and planning before you take the plunge.

We never look at a holiday home within 4-5 hours drive, whats the need for a holiday home which is so close? For us it has to give us an experience which is not available where we stay, if I am able to view the mountains within a 40min drive - why would I pick up a place which is going to give me a similar view. Yes if there is some icing on the peaks then that will get me interested.

What you gain is a lovely home away from home, sometimes its the change from the daily routine. Most of us are in the capacity of being able to work remotely, this is such a boon, of being able to live and work from your dream location.
If you have also picked up some land, indulge in some farming - don't let the land just stay there uncultivated.

These 'small' things eventually give us unparalleled satisfaction which is long lasting and yours completely.
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Old 22nd August 2017, 12:06   #27
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Default Re: Do you believe in owning a holiday home anymore?

Just Got 1 in Haridwar. Its in a Colony meant for Hindustan Unilever Employees who work at SidCul Industrial Area Plant. The colony is really well maintained, having recently been to Seattle, the place is nearly as well maintained. I drive there once a month minimum. Settling the stuff there. It will be my retirement home eventually but for now, it is slated to become retirement home for my rides.

Parents and my 8 month old baby will move there for more longer durations once it has been furnished a bit more. A key reason was ofcourse to keep baby safe from Delhi pollution. As for cost, I place it way below their health and safety.
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Old 22nd August 2017, 14:51   #28
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Default Re: Do you believe in owning a holiday home anymore?

Holiday Home, Weekend Home, Farmhouse, 2nd Apartment are all very different things.

If you are looking at it from just money or work/commitment involved, it will never make sense. It you looking for a place to inspire you, give you an escape from the city, entertain friends and family. This could be a lot cheaper than going to movies or malls or eating out.

I made a weekend home on top of hill near hosur. For the money it costed me to buy the land, get the electrical connections, bore wells, construction done. and monthly expense to upkeep. I would have got a good 3 bedroom apartment.

Would i regret this, no. Fastforward 20-30 years in your life, where would you want to live if you had everything else in life ? I am the kind of guy who like custom made things, things that age well and become priceless with age. 98% of properties you buy today will look bad in 20 years time. A well made weekend farm property is timeless will become beautiful and priceless in 20 years.

I would not even check the current valuation of that property these days, its pointless when i would never want to sell it for whatever the price.

some pics attached.
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Old 22nd August 2017, 15:04   #29
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Default Re: Do you believe in owning a holiday home anymore?

Wow.
This farmhouse looks so gorgeous. Congratulations.
I think most of the value of this property comes from its unique location, architecture and view.
If this was a cookie cutter bunglow in a farmhouse plot scheme, in the same location, it would not be so amazing.

When evaluating a holiday home, I think the most important attributes are a great view and the design of the place. If you can manage to secure a location where the view will not be disturbed / blocked even a few decades afterwards, then the property value will appreciate.

Last edited by abeerbagul : 22nd August 2017 at 15:06.
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Old 22nd August 2017, 17:43   #30
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Originally Posted by sivasain View Post
Holiday Home, Weekend Home, Farmhouse, 2nd Apartment are all very different things.

I made a weekend home on top of hill near hosur.
The only issues that scare most city folk from investing in something like this is land grab and land acquisition. My mom's school principal has been facing a lot of issues. He built his house in a village near Chandigarh. He built his house a few metres away from the main village. Now, the govt has acquired the land for building New Chandigarh. The village houses were spared but they are neither allowing him to keep his house, nor willing to pay for the costs of the house. He has been fighting for a long time now and even though he can afford to keep fighting, it does take a toll on one's mental and consequently physical health.
So, if one wants to invest in something similar as you have done, they have to consider such future implications as well, which makes making such choices even more difficult.
For these reasons, I prefer properties in the interior or away from any major roads even if it means having to spend a bit more for building borewells, electric connections etc.
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