Topic: Do you think selling your property is better than taking loan? - page 2. (Read 796 times)

Sell what you dont need is best because in theory you dont lose anything and if theres depreciation within that asset, say a second car you will avoid that future loss.    A 2nd property is usually not protected from tax like a primary residence might be, I know some holiday home areas are charging 30% on top of purchase for a local tax to help actual real residents retain the body of a town.
   Avoid debt and being over balanced in your income vs debt especially where the interest rate is not fixed, yes thats a good idea.   Cut back spending also ideal rather then borrowing, houses can cost money just to hold their value flat.

definitely sell a property if you are so sure that you could just buy another when the time gets better, when you at least already solved your problems and can move on and earn money in the future.
meanwhile loan is good if you are a guy with family that needs place to live. but it will give burden in long term.
it just depends honestly, sometime we needs to make some sacrifices, we couldn't get best of both worlds. therefore it always depends on your situation which sacrifice that you can make is lesser.
at the end of the day it also depends on your earning, your capability of restoring the thing that you sold off or paying off the debts that you have in the future, only by increasing income that you could be spared from resorting into either of them.

I say its better to actually sell than subject yourself to a loan you'd have a hard time paying. For one, the act thereof of taking a loan when you're not even sure if you can pay it back is already a big problem my brother, since not only are you subjecting yourself to bigger financial troubles, you're also ruining your self-image against friends, family, relatives, or basically everyone who trusts you and is on your side. If you think you're not going to be able to pay it on your promised time, worst not even able to pay it at all, then might as well just find other ways to supplant your lack of money, like getting a job or actually selling your appliances like what OP's friend did. Better to inconvenience yourself than bring other people to your dilemma.

The decision between selling your property and taking a loan depends on various factors, including your financial situation, long-term goals, and the specific circumstances surrounding your property and the loan.

Selling Property:

Immediate cash flow: Selling the property can provide you with a lump sum of money that you can use for various purposes, such as paying off debts, investing in other ventures, or funding a major expense.

No debt burden: By selling the property, you avoid taking on additional debt and its associated interest payments.

Loss of asset: Selling the property means you no longer own it, and you'll miss out on any potential future appreciation in its value.
Taking a Loan:

Retain ownership: By taking a loan, you retain ownership of the property, and once the loan is repaid, you still have the asset.

Leveraging the property's value: If the property has appreciated in value, you can use it as collateral to secure a loan with better terms.

Debt obligations: Taking a loan means you have to make regular payments, including interest, which can be a financial burden if not managed properly.
Ultimately, the decision will depend on your unique situation and financial goals. Consider consulting with a financial advisor to assess your options thoroughly and make an informed decision based on your specific circumstances. They can help you weigh the pros and cons and determine the best course of action for your needs.

Yes, they do own something then its their right decision on whatever things that they would really gonna supposed to do and just let them be on what would be their decisions whether they would be selling out their property or not or simply taking a loan just because they are really tending to dive in with some venture. Its true that there are loans which are strategic on which it is really that something that could give out that kind of chance or opportunity into having that kind of advantage but of course every loan taking should really be that strategic on which it would really be just that right or worth if you would take a loan for the sake of investment or business and not really just taking one just because you are really that buying something which its never been that making income or source which its never been worth on making some loans or taking.
Its impossible for someone not to make out some balance in speaking about taking loan decisions because if its possible we should make use of funds which are supposed to be buying on doing something
as much as possible because having loans will really be just putting yourself into some interest and might become worst later on if the number of loans taken is really lots.

In living life, sometimes it's not as smooth as what we want, sometimes we face various challenges, one of which is like your friend who is experiencing financial problems. Financial difficulties are indeed one that often happens to us, especially if someone has a business that is going bankrupt. So we are faced with a dilemma between selling the property or going into debt, which is better?

in my opinion it depends on each of us and the problems we are facing if selling property is enough to solve the problem, I personally will choose to sell property because we can get all of that back if we get more money. Don't let you later feel regret in life due to debt because you can't pay it off. Because many people are in debt without careful calculation, in the end, debt is still suffocating their lives.

If it's property you don't want, it's better to sell it. If it's property that holds value over time, like land, it's better to take a loan, because a loan is influenced by inflation, so in time you will have less and less of it. Let's imagine you have a piece of land that costs you next to nothing to hold because there's no house on it worth 100k, and you take 100k as a loan for 10 years. After 10 years the loan will keep going down in value by 5% a year, which is an average rate of inflation and if the bank goes bankrupt or you die, the loan will stop being a burden to you, but that property cannot be destroyed. Land can't cease to exist and it's very hard for it to lose value. You'd have to irradiate it or pollute it somehow for that to happen.

I simply agree on you. It’s not bad to sell as long as those properties are no longer productive anymore. But if you are still benefiting from it, then don’t bother to sell. Instead, take a loan that you can easily afford to pay. That is, take a loan based on your income and not based on what you need. That way, even if the interest is quite high, at least you know you’ll be able to pay for it because you have your own stable job that will generate fixed income.

Easy question op. Taking a loan will always be the better option when compared to selling properties because property prices could rise over time increasing their value while loans don't really provide any gains as time passes.

However, I hate loans and only take them if absolutely necessary which is why it's not a good idea to depend on loans for small things.

There is no denying that the rich mostly have investments, and their wealth is largely made up of investments. But they are not stupid enough to invest all their money, they also have contingency, emergency, savings. As for the poor, not everyone spends money indiscriminately, in some cases, they cannot save because life is too difficult. Most of the poor know that investing is the way to get rich, but one of them can't afford it, not because they don't want to invest.

It is definitely better to sell your property than to take a loan if you can manage the amount of money you will sell your property for. But when the necessary money cannot be managed even after selling the property, at that time one has to take a loan even if one does not want to. But nowadays people are not so much interested in selling their property, they take loans just in case. Those who do not think it is right to sell their property would never have taken the loan without selling their property if they thought that they could do something else with the amount of interest they have to pay by taking the loan. We should not think that if we sell our property then we can no longer own our property. If you can repay the loan then of course you can buy the property again.

None of these two is better but if you are already rich you won't even seek the advice, you can always sell whatever you want to get more money, the rich knows their game right?

The poor spend almost their money and leave too little for investment,  and on the long run they might not even end up investing that little amount.

The rich invest almost all their money and spend the little that's left to survive and they maintain their status, I guess this whole thing is about been smart and able to use your money right.

Loans also is better for the rich more than the poor but I know quit few people that did every good things in life using loan money, very risky but they made it.

You got to understand the real you before you can choose one out of these two.

Well in my case, it could depend. Borrowing money is pain in the ass sometimes except if you're going to borrow to someone you know. Selling property especially those than you don't need it anyway are far more worth it than the other way. It's not selling your house or land anyway so what's the catch on that?

Bitcoins aside, I had sold old DVDs before to my local junk shops and somehow I was able to buy somethin from it. There is not much common uses of DVD now these days considering that everything is digital. Same goes for some antiques that could potentially be sold for some "fair amount".

I think some people here are misinterpreting what "properties" do OP meant. It's not usually always directed to house/land.

It may be huge money as you sell it off, but in the long run, you keep regretting this. Like my close friend before, they sold their land, which is farmland, a portion of it as it was for medical expenses, and it turned out they could just take a loan from it. Right now, they want to expand their farm, and most of the land there is already used and no one is selling it. But again, when that time comes, we usually get mental blocks, but again, it is better to take out a loan if you can still pay it.

If I had to decide between borrowing money and selling assets, I would also choose to borrow money rather than sell my property because assets are easy to sell but difficult to buy back, especially those that increase in value over time like bitcoin or gold...But I would oppose you if you are intending to borrow money to invest in bitcoin. Bitcoin is rated as a potential investment, but that doesn't mean it's risk-free, and don't forget that the higher the return, the higher the risk.

What if bitcoin won't go up in price anymore? This question sounds like it's not going to happen, but you don't have proof for this either. Bitcoin will rise again, will hit new ATH...it's all speculation and we don't have any proof that that will happen, so the idea of borrowing money to invest is a bad idea.

Yes, when we go for a loan we need to think of the interest and all. When we think of selling a property, it is just a single time settlement, but we'll regret for what we've done as the value appreciates with time. When it comes to loan, if the loan amount is invested wise we'll get good return from the same and this can be used to repay the loan along with the interest. As said bitcoin is a good choice, and priority can vary between different users.

If it’s just a small amount, then I can just sell my property in exchange of the money. But if it requires a lot of amount, I guess selling alone won’t cater it anymore and so taking a loan is more advisable. However, to be honest, I’m not fond of selling any property that I have gained through my efforts. I’d still prefer to just take a loan specifically on the amount that I can afford to pay. That way, there’s nothing to lose.

You must pay interest on a loan, but if you sell your property, you forfeit the opportunity for future value. It's difficult to pick between these two, but I believe a loan is preferable because you can still pay with interest. If you simply invest in Bitcoin, you will receive more than what you have sold. I believe in Bitcoin since not everyone in the world is investing in it, and there are many investors who have yet to invest in it. So, if the moment has arrived, many individuals will undoubtedly benefit.

Everyone is having choice so it’s left for everyone to decide either to sell property or you go for a loan, but as for me, If am having a source of income and I know that I can pay back the loan before the specific time which I promise to pay back, then I will rather go for loan, but if I don’t have any means to pay back if I take a loan, then I will rather sell my property just to settle the problem. But it’s annoying when you see people taking loan and not having means to pay back, when it’s time for them to pay, they will start giving story, if you don’t have any ways which you can pay back your loan after taking it, then make sure you completely avoid loan.

The nature of the problem will determine what step i will take but I don't think it will get to the extent of selling my property, taking loan is better and paying gradually, is not worth it selling off my assets, so all is strategy, If you don't have a good strategy in life, you've failed the number one survival lesson. And lastly  the decision is personal if the person  wants to sell is asset to settle issues then no problem and if he wants to take loan no problem everyone will do what will favour him or her.