How To Afford A Second Home: In a recent video, my wife Amanda and I give you an exclusive tour of a breathtaking £5.7M beachside mansion. It is located in one of Dorset's most private and sought-after cul-de-sacs, Lilliput. We were hosted by Laila Safaee, founder of Silverbirch Boutique Lettings Agency in Sandbanks, who the property is available to let from.
If you would like to see the full tour of the property with stunning sea and harbour views, a private gym, a cinema room and more, please watch the full video until the end. You can find the video at the top of this page or on my YouTube channel.
A lot of people want a second home, but don’t think they can afford it. In some cases they are looking for a mansion like this one, in others a lower cost option. But whatever kind of holiday home you are looking at, in this article I will give you 3 tips for how to afford a second home.
I would like to inspire as many people as possible, but I need your help. If you find these tips useful, consider sharing this article on social media.
1. How To Afford A Second Home: Pay For It With Passive Income
When you get a second home, you don’t want to pay for it from your active income (i.e. your job, self-employment, or primary business). You should pay for it from your passive income (i.e. income from your investments or systematised businesses that you own but don’t work in). There are many forms of passive income, but my favourite is property.
If you already have a deposit saved for your second home, you could use that money to buy an investment property that pays you every month. If not, you could start a property business, which requires a lot less money to start.
For example, you could start a rent-to-serviced accommodation (R2SA) business. This is where you rent a property from a landlord and then offer it as serviced accommodation on sites like Airbnb, (with the correct contracts and permissions, of course). Over time, you can systematise the business, turning it into passive income!
2. How To Afford A Second Home: Rent, Don’t Buy
Once you have a source of passive income, it's time to get your holiday home. But wait! While you have cashflow from your investments, all your capital is now tied up in them. How are you going to afford the deposit to buy your second home? You’re not! You are going to rent your second home instead!
Renting a second home allows you to have maximum flexibility. Try a home for a year, try another the next. Not doing well one year? Give your notice and move out! Doing better than ever? Upgrade to a nicer property! Renting is easier than owning, and it means your capital is never tied up in a non-income producing property.
3. How To Afford A Second Home: Invest In Yourself First
If you don’t know how to invest in property to produce maximum cashflow, or you don’t know how to start a property business, you will need to invest in yourself first. This means reading books, watching videos and attending training events. This is very important because while you can make a lot of money in property, many amateur landlords only break even or lose money!
If you are willing to put the time in, you can learn the skills needed to make a passive income from property. This will give you cashflow to use on luxuries and daily living. This is how to afford a second home the right way!
How To Afford A Second Home: Getting Trained
Now that you know how to afford a second home, it is time to get some property training. Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
