Exploring the Many Considerations For A Second Home

Just when things were coming under control after a tough year-and-a-half wrestle with a vicious invisible virus, it managed to pin us to the ground yet again. With the highly contagious Delta variant running amok globally, it was a matter of time before parts of the world start slipping back into tighter restrictions

At time of this writing, I was supposed to be in Portugal, touring Porto, Coimbra, Lisbon and Cascais to be precise. The trip had been planned and booked earlier in the year as a birthday treat, but as the travel date drew near, the Covid risk level went from hello yellow to sprightly orange to almost red in the touristic cities. The progression played out like a slo-mo sequence in a movie: initial detection of the Delta variant in Lisbon, infection cases started to climb, quick transmission to other popular tourist areas like the Algarve – with background accompaniment of an opening soundtrack of elevator music building up to a throbbing acid jazz and culminating in a fervent crescendo of a Hitchcock thriller.

Should I Go Or Should I Stay

The trip was to check out if Portugal is a possible retreat for us during the grey and depressing winter months in Holland. Since giving up our 2nd home in Singapore early this year, the plan is to find another location to escape to where it is warmer, milder and affordable, within driving distance in case borders get closed again and flights are prohibited. Land borders within the EU are porous given the multitude of entry points.

12 days before our flight was to depart, the virus risk code turned deep orange for Portugal. We waved the white flag in resignation and disappointment, and stayed put in Holland.

So instead of making scenic assessments, we decided to examine our differing views on a second home to try and reach some alignment so that by the time it is safe to travel again, we would have a better idea of what we are looking for.

A second home is getting more popular as people become more savvy through travel, the internet and awareness of retirement alternatives. It ranks high in many people’s wish list and the reasons can be vastly different:

• As a convenient base close to family and friends
• A base at a frequent work or business travel location
• For enjoyment of one’s favourite sports (eg. ski, golf, surf)
• An escape from one’s primary residence, whether for change of lifestyle or climate
• To cut down on long commute
• For regular family vacations at a favourite location
• Having a ‘foot-to-the-ground’ to one’s favourite city
• For investment

While my husband and I both see eye-to-eye on the benefits of a second home, our opinions differ on How, Where and What. 

 

To Own or Not To Own, That is The Question

Firstly, the ‘How’: My husband believes in buying outright for the freedom and authority of usage. Besides the convenience, he reckons, having a pied-a-terre is all about creating that home-away-from-home feel, which means being able to renovate and decorate to one’s liking. He belongs to the ‘Home is my castle’ camp

In addition, his other considerations are probable appreciation of the property, possible tax benefits, being able to let family and friends stay for extended period (the months when we are not using it) without having to worry about sub-letting or other tenants’ restrictions.

I, on the other hand, am more of a ‘rolling stone’ and would prefer to skip all ownership hassle and just fast-forward to the enjoyment part. Don’t get me wrong, I am a fervent believer in property ownership, but for investment purpose. Owning overseas properties is fraught with complex ownership regulation such as title deed restriction for foreigners, limitation to certain categories eg leasehold or property value. Then there are tax concerns, insurance liabilities, foreign currency risk, maintenance and upkeep…just thinking about it makes me break out in sweat. Owning a property for rental income is worth these effort but for a second home, which is chiefly for pleasure and enjoyment, should come as hassle-free as possible, preferably with whipped cream and a maraschino cherry to top it off. Lol.

Where I Lay My Hat, That’s My Home

The disagreement in terms of ‘Where’ is not so much about a specific location such as  Barcelona or Montpellier or Tuscany. It is more about being tied to one location for the next 10-15 years versus checking out a different location every year.

Isn’t it wonderful to go new places, make new friends, discover new sights and delights, learn about new culture, a new language or new recipes of local cuisine? Why not expand one’s horizon, literally and metaphorically? Perhaps the best is yet to be discovered

My husband feels that burrowing deep is important for that sense of rootedness instead of just a sojourn of 3-6 months. To make meaningful contacts and friendship, committing time is the essence. A second home is a place to lay one’s hat, where one can grow into and become part of the community. It should not be treated like travelling for vacation, where one skims the surface, ticking-off a list of must-see’s or must-do’s, and a t-shirt as proof of it. 

Dazzle or Hassle

And finally there is the important consideration as to what type of second home we should be looking for: a villa or an apartment? 

I favour an apartment within a resort community with facilities like swimming pool, gym, tennis courts and if lucky, a golf course too. Maintenance of common area is taken care of, upkeep is limited to the confines of four walls, easy to lock-up and leave for months unattended, lesser anxiety about security and with ease of access to the many facilities on-compound

My husband, on the contrary, feels that since we live in an apartment in cosmopolitan Amsterdam, it would be more charming to have a villa in the mountains or near the ocean, to experience a different lifestyle altogether. He further reckons that if we opt for a lower cost country like Portugal or Spain, the issue of time-consuming and costly maintenance and upkeep can be solved by hiring locals for gardening, housekeeping and general upkeep

Such a simple concept but what opposing views: 

• Buy versus rent. 
• Familiarity versus variety.  
• House versus apartment

If you too are thinking about a second home, these may serve as helpful differing perspectives. Whatever the starting point, by initiating this process of discovery, I will not only learn about the places but also gain clarity to my view on retirement lifestyle. As long the process is kept fun and mutually engaged, a good outcome will be reached

A second home in retirement should be where the past and future comes together, making one whole and wholesome. 

 

To wholesome living,

Savvy Maverick