just one simple question that could help you save hundreds of thousands of dollars on your home loan, and this is a question that people often forget to ask. It’s a question that is so simple, it’s just one word, and that one simple question could help you avoid paying more than you need to on a property, losing control of your home loan, overspending and overcommitting yourself, and having your home loan for longer than you need to. This is Part 1 of the MUST WATCH series before you get a home loan for a property that you will live in. We kick this off with the first most important question to ask before you buy property.
In this episode, I’ll share what that one question is and how by asking this question, you can avoid common mistakes that happen when you don’t ask this question.
Buying property doesn’t happen by accident. When you start with this one simple question, you develop a purpose, you become more focused, and you become more determined on getting what you want. And it’s a question that’s so simple that people often forget to ask themselves before they buy. They get caught up in the process of looking at properties and they get caught up in their emotions that they forget to just step back and just ask this one. Very simple, but very important and effective question. Let’s get straight into what that question is.
The number one question to ask yourself before you buy a property is: Why?
Why are you buying?
Be honest with yourself about what you are looking for and why you want to buy. What is the reason why you are buying? Are you a first home buyer?
Are you buying a family home?
Are you an investor?
Why are you buying?
When you start searching for properties, it becomes very easy to lose sight of the bigger picture for why you want to buy, why you are there in the first place. You walk into open homes, you start imagining yourself living in that property. You start imagining what you would do if you were to renovate the property. You start falling in love with a property that you just have to have.
When you start looking at properties, there are a lot of emotions that can come out. You start to feel attached to properties and real estate agents know this, they know this and they play on this. Why do you think they ask you to imagine what you would do to renovate? Why do you think they ask you and tell you what they would do if they were to renovate the property? They want you to yourself and immerse yourself in the property so that you will fall in love with it. And that’s why it’s important to start with your why.
Start with your why before you buy.
In particular, there’s one common mistake that first home buyers make. That common mistake can be avoided just by asking this one simple question. Now, in a moment, I’m going to speak to the most common mistake first home buyers make. But before I do, if you are ready to take the next move to get strategic and plan before you buy a property so you can take that emotion out of buying, I’ve created a free masterclass to walk you through step by step how to start with your why, so you can get laser focused on what you want. Comment below with the word masterclass and we’ll send you the link. Let’s get back into it. There’s one common mistake that first home buyers make. Here’s what that common mistake is.
If your reason for buying is to buy a first home, one common mistake that first home buyers make is that they misunderstand the meaning of a first home. Let’s break it up and look at each word separately. So first means something that comes before something else, and home is a place in which somebody lives.
So if we put those words together and we have the words first home, by buying a first home, there’s an assumption that you’ll probably go on to buy a second home. Many people who buy a first home, we’ll go on to buy another property, whether they sell their first property and then move into the next, or whether they keep the first one and make an investment property and buy another home.
But people tend to buy a second home. Now, you might be wondering, oh, what’s wrong with that? Well, herein lies the mistake.
First, home buyers tend not to buy a first home.
Instead, what they’ll go and do is buy the most expensive property they could possibly afford.
That’s not a first home. Here’s the catch.
People get caught up in wanting the bigger and better property now.
And then what happens?
They borrow more than they need to. They overspend on a property. They have a home loan that takes way longer to pay off than they it needs to take. They pay way more interest than they need to pay, and it takes them forever to pay off.
When we let our emotions take over and determine what we end up purchasing, we end up losing sight of the bigger picture of what we really want or what we really want to achieve.
Do you have to have that house?
Are you going to be living there forever?
Probably not.
Some people never move, but are they not moving and not moving on from their first property because they don’t want to or because they’re stuck?
This is where you can start to get strategic. If you are serious about buying in the next six to 12 months and you’d like to work directly with me to help you create a plan specifically for your situation, comment below the word wait list to make it happen. Asking why before you buy can actually help you to think about what you really want to achieve and to step back and take that emotion out of buying.
You don’t have to get caught up in buying the house that you have to have. You don’t have to get caught up in buying the house that’s bigger and better just because it’s bigger and better now, you’ll actually be able to buy something much better and much sooner if you actually stick with your why.
When you stick with your why before you buy, you remain in control. Get down to your core reasons for buying. For us on our first property, we had two key reasons for buying. Our first reason was to buy a first home. We wanted to buy, get in, get out, and move on to our next property as soon as possible. And our second reason for buying was to buy something for our family.
We weren’t looking for a family home that’s different. We were looking for something that would just suit our family.
You don’t have to buy the most expensive house you could possibly afford. When you start with your why, it actually allows you to be strategic because it lets you think about the next most important question. And the next question can help you unpack what your reasons mean and how you can work with these to buy a property. So there you have it. The single most important question to ask yourself before you buy is to ask yourself why
It could potentially help you save thousands if not hundreds of thousands of dollars on your home loan. And it does this because it helps to take out the emotions when you buy a property. It helps you get focused on what you want. We moved on to buy our second property pretty quickly, and we only did it because we stuck with our why. We saved ourselves hundreds of thousands of dollars on our home loan and then we could buy a property in our favorite location. When you start with why before you buy, you’ll thank yourself later.
Once you have your core reasons for buying, you are ready for the next question. The next video in this series is about that second question coming right up
