Topic: Do you think selling your property is better than taking loan? (Read 813 times)

I have a rule when it comes to giving out loans, I do not give loans to people who do not have the means to pay me back. I simply say “NO” when these persons ask me for a loan. That saves the both of us the back and forth drama of collecting back the loan.


This is a subjective question, and I think it depends on where you’re taking the loan from and the interest rates. I would rather take a loan using one of my properties as collateral, it’s a more appealing to me than selling properties to satisfy a need.

Both seems are not the best options to take but will definitely push you into worsening the situation in the future. So I will never encourage anyone to take any of this. But if you think you have a stable source of income that will pay your debt, then prefer taking a loan but pay it directly when you get your salary so that it’s interest will somehow be reduced.

I'd say no, but I'm looking at it strictly from the financial perspective. Property has real value, while a loan is only an agreement. You can always default on a loan and risk being taken to court, but defaulting doesn't mean immediate loss on your part. Your debt can change depending on the economic situation in your country and the state in which the loan giver is. It's state is more fluid than the state of the property, which is physical.

Both are actually risky to take so if I can make another option just to get immediate funds, then I would prefer doing that. However, no job will give you quick income that’s why I also understand why most people resort into taking a loan or selling their property when they need immediate funds. But I must say those are not really advisable because it will only take advantage on your part and see yourself still losing in the end, and this will happen repeatedly if you never change your mindset.

Not totally the best option and its true that we should always be mindful about having that emergency funds because there are really moments in life on which there are problems which it would really be pertaining

about needing up funds on which it wont really be causing for you to be that having no problem, unless if you do have tons of money then this wont really be an issue but if you are someone who does have
that situation on which finances arent that on nearly unlimited then it would really be wise that you should always allocate for emergency funds. Make yourself that avoiding on taking a loan
nor really selling out your assets because its not really that something a worthy decision that you would be making.

Its true that there are some loan which would really be advantage or worth but this would really be situational on which it is really just that right that you should
know on how to balance.

This is exactly the reason why we have to consider building our emergency funds because in times of unforeseen cases, at least we have some prepared funds to use rather than selling our property or taking a loan which I think are not the best options. However, if you have no emergency funds since all your salary goes into your family’s basic needs, then maybe taking a small amount of loan is acceptable. But if you can have another job to get additional income, then that would be a very great idea.

While it's never a good idea for someone to sell their property or take out a loan, when it comes to emergency situations, I don't believe either of those two options is awful. However, the decision now rests with the individual. Whether to sell real estate or take out a loan should be determined by the circumstances. If I own valuable property that is also my primary source of income, I will accept the loan since I can use the proceeds from that property to repay the debt. If I need to address an emergency situation and I own property that is not very valuable to me, I would rather sell the property than take out a loan.so I believe that the best option should be depend on the risk the each carried.

For me personally, maybe the first option I will do is try and try to find a loan first from a friend or relative. Because if I immediately sell one of the properties that I own, in my opinion, this action is a bit too fast.
After that, if for example I manage to get a loan, it means I don't need to sell the property that I own. But if, for example, I am unable to get a loan, it means that steps must be taken to cover these emergency needs, namely being forced to sell the property that I own.

I don't think either of the two options is bad. But if you're looking for freedom and want nothing to do with other people, plus you don't have any close friends or close relatives to rely on, selling your property is clearly the best course of action in such a situation. However, if, for example, you have relatives or close friends you can rely on, I don't think there's anything wrong with asking them for help first.

So in conclusion, in my personal view, selling property is the last thing to do. Because sometimes selling property is not as easy as imagined. Moreover, for property in the form of land or shop houses, of course it takes quite a long time to negotiate. So in that negotiation, if I didn't think it through, I could have sold the property that I owned at a low price.
But if I have to sell a property I own cheaply, I'll still avoid it.
Even though I'm in a pinch.

When you need money it doesn't matter which method you use about how to meet this need. However, to give a logical answer;

If a product or asset is in surplus for me I prefer to meet my financial need by selling it because having a surplus product or asset means that it is not really necessary for me. However, if the property I product or asset to sell is something that I use or is not surplus to, I definitely think that borrowing money would be a better solution. Although it is possible to sell an asset or product and then buy it again to meet the need for money, if I have an option to borrow it will definitely be an easier and more attractive way to borrow.

On the other hand, as a credit card holder of a currency that rapidly depreciates in the face of inflation it has become a more logical option for me to borrow without thinking, especially in today's conditions. Since my salary is paid in euros it is definitely a very advantageous and lucrative option for me to spend or borrow money as I mentioned even in the short term or long term.

I also understand your point; all I'm saying is that getting him someone who could buy those properties was the help you offered him, but the help would have been more helpful if you could have convinced him to use a loan and use those properties as collateral instead. As you and I know, those properties are sold for less than what they are actually worth. Never the less, you have done all you could for a friend who is in need. I'm just telling you how I could have handled that kind of situation if I were in your position.

He has made his decision and made his choice for whatever he chooses to do with his property. Although I get your point, I believe I only rendered help to someone I saw who was really needy. He believes that he can still replace the things he sold any time he has money.


I don't know how it is in the United States, UK, or other good countries, but I know that even in some rich countries with good infrastructure and a booming economic system, there are still some locals where people living in such parts will still not be living a top standard of living (lifestyle). Even in the city, there are some bad situations that do happen to people who lack good financial management skills. Perhaps you know that when a good financial management skill is practiced, a person does not really go bankrupt to the extent of wanting to sell everything or some of the properties they have. Lucky for you, you wouldn't come close to such a situation, but even in some rich countries, there are people who are not very rich like you. If there are US citizens here, I wish they could testify that there are still poor people over there who even bag, even if they don't beg, but the fact is that in every country, there are people who are citizens.


exactly the point, mate. Last week I saw a thread of a newbie who said his brother was going for a surgery of about $30k+ and what he only had was about $3000, and this newbie was asking if he could invest in Bitcoin in order to make the money increase. So, most times, there are still some issues that can drag one into the mud unexpectedly.

---

---

Luckily, on the first page, I found someone with whom I share the same opinion. The quote below was written by Zlantann.

The answer really depends on the situation. If you are able to sell a property at a good price then it is probably the perfect answer. But in reality, it is not easy to sell stuff, especially second-hand stuff. Most will sell their stuff at a huge discount in order for it to be sold. But that is not a problem especially if you own more than one.

Taking a loan is the most common. This is a problem though especially if we loan thru huge interest lendings or people that offer quick loans but with huge interest rates. 

In OP's story, his friend sold his refrigerator and washing machine. These two are very important to me and it is hard to live in my situation without them. So taking a loan is my best option although I cannot imagine taking a loan with big interest rates.

I am not rich but I have my own small savings and investments that I can pull out in case I need urgent funds. And people should practice the same way rich or poor.

Nice ideas for future planning actually with property investment, have two option getting profit trough property assets investment as selling soon possible or taking loan and earn benefit each year due how many duration from our property taking loan. Actually selling as soon possible is more profitable than taking loan but have difference way right now with selling property. Regarding experienced selling property in my country very difficult payment full cash and we have open option with payment by credit and taking time more than ten years later. If easily selling property with cash full without have credit seems its better than taking loan but depend kinds in difference countries.
Still benefit if taking loan but our capital return for too long and need more than ten years later if any loan consistent on the same values for getting back our capital.

I am completely against selling real estate in such economic weather that inflation can go sky high. Money you receive from selling your flat can evaporate so quickly and you will find out you cannot even buyback your flat. I think trying to find low rate debts is far more better in inflationomics so you can use/invest and get more return on your debt. I feel like its easier than trying to find investment option with your life-worth money. Real estate is very important.

There is no correct answer anyway. I previously mentioned around here that I would just choose to sell my property one by one to be able to pay off on the current liability I have. If it is for building business though, it would be a safer bet to just take a loan since the cash flow is going to be continuous anyway and the profit isn't just one time hit in your pocket depending on how your business is structured though.

Overspending becomes a catalyst to worsen that "bad health situation". Some people just have the savings or emergency funds to handle these possible situations. Selling properties like your whole house might be too much if you have too many small assets or property.

Make a breakdown spreadsheet first of the value of your properties then compare that to the possible value of your house. It's hard to be homeless these days.

In my opinion, the steps taken by your friend were very correct, he was trying to find a loan to get money fast, when the first option did not go according to plan, selling the property was inevitable and that was the only way left to get the money that was needed. I will also do the same as your friend did, when the loan cannot be obtained, selling the property will help solve the problem quickly.
He still had time to think positively during an emergency, maybe it had crossed his mind to take an online loan, because he did not have a source of income or a means of paying on time he decided to sell some properties or electronic goods to avoid bigger problems such as not being able to pay off the loan on time.

Yeh most of the time people face such financial problems not because of overspending or financial recklessness but some time because of sudden and long bad health situation or some kind of huge loses in business and trading or may be some time due to some family hidden problems.

In my view taking loan will be the best option because during tough situation no one relative or friends will pay good price for you property as they already know your condition, so that's why took a loan if you are capable to pay it back from your monthly or daily income source, but if you haven't possible repayment source them you should go for selling unnecessary object like television, Air Condition or some other stuff like all those stuff without which you can fulfill daily need, but if all of them hasn't work then the last resort will be to sell my property like house , farm or something else.

Although it seems an easy route to cover your financial needs, have you pondered the social consequences? The intersection of financial and emotional relationships can be a slippery slope, potentially leading to strained relationships in the case of delayed or defaulted repayments.

Moreover, the assumption that property prices will always rise is a dangerous notion, and a myopic view of real estate economics. A myriad of factors like location, market conditions, government policies, and economic climate all have a significant impact on property value. While it's true that loans from family and friends often come interest-free, placing your relationships at the risk of financial disputes might not be the most wise course of action

If we need fund which can easily be turned back in year according to our earning source then i think that taking loan is best option because you would buy again this property in high price. I am talking about loan taken from family, friends and relatives without any interest and i will recommend avoid bank loan where you have to pay back high. Property selling is not considered good in our area , This why I will recommend to take loan.

All above suggestions will be in the case when property is worthy and you cannot stay comfort without it. If property is extra and you feel no issue with selling then property selling is best option.

it's better to sell our property. taking loan is not so good for our mental, because we will life under pressure, also if there is some interest that weighing us. I hope I don't need to borrow money from anyone. have some amount of bitcoin now also good as liquid fund where we can use it anytime, thanks God there are many local exchange in my country where I can convert btc to fiat and vice versa. the good part is bitcoin value increase so much.