Topic: Do you think selling your property is better than taking loan? - page 3. (Read 813 times)

"$1000 is a not a lot to have but it's a lot to owe." has been my number one mantra whenever I am short in funds. Way back then when I was a belligerent idiot who fails to make payment promises and all that I thought it was fine cause I'm paying them anyway, just not within the allotted period, but then again I figured that sometimes it's actually much better to pay people right away than to marinate the debt, even if they say it's fine. I feel like I'm going off a tangent here but in connection to OP's post and presented dilemma, I say it's much better to actually just take the debt provided that you're a good payer than sell your stuff. It's easy to sell shit, it's hard to buy them back. And especially with appliances that you would use everyday or on a regular basis, retaining those items that ensure you get payments, like computers, washing machines (so you can wash your shit and go to work not smelling like a hobo) and taking up a loan with the caveat that you pay it right away is a much smarter move than crippling yourself you know.

It actually depends. If you think that property is no longer usable anymore for you, then it’s best to dispose it by selling it but only with a bargain price. However, if you think selling are still not enough to reach your needed funds, then you better go take a loan and promise to pay it as soon as possible. That way, you will still have property left and just sell it in the future when it is mostly needed.

I would take this advise on which i would definitely be selling a property which it doesnt really generate income but rather it do really consume out or having that expense on repairs or simply with

maintenance on which it would really be just sensible that its better to let it go and make use of the money on which it is something that would be more useful or worth on doing so like putting up on a business or investment on which it would really be generating an income. Somewhat everything would really be depending on you because we are really that different when it comes to thinking
on what are the things should be done and whats not. The best thing that we do know is on how to make ourselves able to generate income no matter what the actions we should need to take.

Having or getting some loans is never been recommendable but if its needed and do see up some good opportunity then it might be reconsidered but as much as possible it would be always
best on making yourself that debt-free.

This will entirely depend on considering the various pros and cons of the loan. People may need money for various reasons, it may be short term or long term. Again, there are risks in the case of loans. So when a person is completely clear about these things then he can decide what he should do. Any long-term issue and if it seems to be solvable in installments with a bank loan, then it is better to take a bank loan. As not all bank loans are good, in some cases bank loans are beneficial. So I will not take either negatively or positively but according to my situation I take the decision.

If you have some items you can sell in order to raise funds, you can do that, but I don't think it's a good idea to sell items you need frequently, because once you need it again, you will have to purchase a new one, what will generate another expense for you. And it's usually more expensive to buy things, although when we are the ones going to be the sellers, we tend to sell for a cheaper price to find buyers immediately.

I also don't like the idea of borrowing money, but in an emergency where there are no other alternatives, there is nothing else I could do, so I would definitely go for that, instead of selling goods from my house or even the house itself.

Fortunately, I've never been in a situation in which I took a loan or sold my belongings for some emergency, but I would always think twice if that situation ever comes to me.

I think it depends on the circumstance, how much money I need and could I repay a loan if I took one. For instance, I would take out a loan for a smaller amount of money which I know I could pay off in an acceptable timeframe. If it is a matter of a larger amount in which I am unsure I can pay it off, selling my property would certainly come as an option since my mind would be calmer knowing that I do not owe anything to anyone.

Either way, if you aren't in a very hard time a loan is acceptable to me, but if you really need the money and don't know if the situation will get any better, I am for selling property(this is questionable though, depending on what kind of property do you own and mean to sell).
Even though I strive to never get myself into that kind of situation, you always have to have a clear mind on the next steps you can take.

Well, it totally depends on your situation and employment status, if you are employed but need some money that is more than what you earn and you know you can repay it in a certain period of time, you should go ahead and take a low-interest loan, but if you know that you are unemployed and you will have trouble paying the money back, it's probably better to sell something that you own to use the money for the emergency that came up instead of taking trouble later on.

It is not wise to take a loan from someone, even if they are your friend or a close one if you know that you can't repay the loan fast because they might need the money soon themselves and at that time if you refuse to pay them back, it can create problems for both of you and the relationship will be disturbed as well.

Well the best solution here is to have some sort of savings fund, where it's for 100% emergency where you can't pull out money from anywhere at all. If the situation is limited to those two choices, I'd probably ask around for a loan first, preferably amongst friends or families (I've done this before, and I'm pretty known to pay it back after a month or two at most). As long as your name isn't really out on the mud, and the money you're going to borrow isn't going to be that much, I reckon it should work. I mean in your case OP you didn't give the loan since you know your friend had nothing on him that can give out trust he'd be able to pay immediately after all.

Taking savings funds is the solution when I need funds urgently. Not enough, then selling gold is the second solution that will help solve the problem of urgent need for funds.
Taking out a loan is too much of a hassle. This means that if the loan is taken at the bank there must be collateral and the administration is not completed in a short time.

Asking a friend for a loan for urgent needs, I am afraid that I will be disappointed when he refuses and can damage good relations when repayment is not on time.

I don't want to burden other people when I have a problem.

I’m not also used in selling any of my property or any electronic appliances at home. I prefer to just borrow some money especially in times of emergency. Because I always believe that if you sell your property, it’s sentimental value will vanish too, and its price will have a depreciating value so you only got a small amount on hand. That’s why I only borrow a certain amount and pay it as sooner as I can.

I agree that borrowing is the last resort if it is not possible to sell something, and I also agree with you that selling something is not a good thing as long as we can still work on it, but if there is no other option then it is an option that I think is good (in certain situations). There are other options when trying to sell things, pawning things for example, but I recommend pawning to people who can be trusted because there is a risk. And we also have to look at our situation first, whether we will be able to collect our goods on time or not.

I think it is not a good idea to sell off your property if you are in need of emergency money, unless those properties aren't needed anymore. In this case, he sold his fridge and washing machine. Those are things that we really need to live our day-to-day life. But taking a loan is also not a good idea, but it is something that could save life in emergency situations, and you can pay off the debt over time. But if it is one or two time, it could be an option to consider. But be sure to not make it a habit. Because taking loans could become an addiction, and it will lead you to more debt. Practice to not be in a situation like this by saving for later. And if you take loans, be sure to make a good plan on how you are going to pay it off.

Selling a property is never a good idea, and acquiring those properties back again will be challenging. So take necessary measures before taking loans and plan out your strategy on how you are going to pay it back even before taking the loan.

Like everyone else when you said property, I thought you were talking about selling something like a house or land. Selling household goods and paying off debt is a different matter. It's silly to sell an item you use, but if you have a surplus, you can sell it. The subject of borrowing may vary depending on the interest rates and the amount of credit you receive. If you don't have a job, you can't get high credit and even if you do, you can't pay easily. If you have a regular job, you can't be afraid to take out a loan. Of course, this makes sense for places like our country where inflation is very high and money is constantly losing value. It's more difficult to pay interest on loans in countries with low inflation and valuable money. In other words, this situation changes depending on where you live, your needs and the conditions of the day.

Like I've been in the same situation as your friend. At that time I didn't know about how to manage finances and didn't even know the importance of having an emergency fund.

And in a situation where I didn't have an emergency fund, at that time I chose to seek loans from my relatives and friends. But I was lucky because I had relatives and friends who wanted to lend me money. They trust me because I always keep my promises long ago. So it wasn't difficult for me to find a loan because my reputation before friends and family was pretty good. And I finally made a loan and within a few weeks according to the agreement I paid it according to the agreement.

So in my mind selling property is the ultimate choice when we have no other way when look for quick money. because selling property in a hurry will only make us suffer losses because of course the price we can offer also definitely cannot be high. half the price or even less. So as much as possible we should avoid it.

So I have important points that we have to build on from now on so that when we experience an emergency and need funds quickly, we can get a quick and easy solution for us. namely by
✓ Build good relationships and reputation with others, friends and family. (It will make it easier for us to get help or loans in times of urgency)
✓ Start preparing dual savings, namely emergency fund savings and investment savings. (We can use emergency savings when we need fast funds)
✓ Must have savings or savings that can be sold quickly such as gold and others (Can be used if the first and second methods cannot be done).

The solution to the predicament lies in the amount required, and it also heavily hinges upon our geographical residence.

The number of responsibilities directly influences the decision-making process, particularly when I find myself in such a situation. If the financial requirement is modest and within the realm of manageable monthly repayments from my income, without causing undue strain, my preference leans towards seeking a financial loan. This approach is further supported by the prospect of selling some valuable yet non-essential possessions during times of dire need. Thus, I endeavor to borrow only a conservative sum.

Conversely, when confronted with a significantly substantial problem demanding a substantial financial outlay, I am prepared to part ways with my current abode and embrace temporary living arrangements to tide over the situation. As part of my future plans, I will commence saving diligently with the aim of purchasing a more affordable dwelling on the outskirts of the city.

It is essential to exercise prudence and seek guidance from experts, as necessary, while making financial decisions, even amidst the allure of sophistication in language.

If your property is not moving like doesn't generate any profit and it became a liability then its better to sell it since maintaining it cost a lot of money. So when you need immediate money for important matter or use it on profit generating venture then sell it because the proceeds will go on right use. Taking loan is bad option especially if you don't have any means to pay it and the interest is so high with this option. So think about it properly since you are the one can identify your wants and needs.

If I need some funds in an emergency,I will definitely take a loan if I can afford it. I can take the loan in other ways if I have assets then I can take the loan by mortgaging them. Basically in this era people do not want to do anything without self-interest. But before taking a loan,you must think and act because if I sell my assets,what will I have to do next? Yes, if the problem is too big,then I can sell my assets. Borrowing is not a good thing either. And if you sell your assets then you will have to move towards more debt in the future.

Taking a loan for capital can indeed be the last solution if there is no other solution after someone has tried to find it. But selling a valuable property is also not the first solution for someone who wants to start a particular business, because the price of a property can sometimes increase at a time. So if a person has owned more property in his lifetime, it would be better if he rents out some of the properties that he is not currently using to get business capital. Because in my opinion it is much wiser than selling it to other people at uncertain prices.

 Loans can be lifesavers but what if you can't meet up payments? There are so many disadvantages yo taking loans and two chief cons are the fact that while taking the loans, you incur debts because it comes with an additional monthly payments and instead of reducing your debt, you sink deeper.
Also, fees and penalties for not meeting up payments are also high.
 But in the case of selling your property, it depends on the item of sale and the amount that is being required because say I'm looking for $30,000 and what I've got as a property for sale is around $5,000, I'd be left with no option than to take a loan.

It depend on what you plan to do with the money, if it's emergency like health problem then you can do either but if it's business it depends on what your worth is, if you have a lot of items that's worth good money like gold you can still take a loan, your mind will ease because you have collateral at mind in case things go wrong, this is better than someone who have nothing valuable somewhere and go ahead to take some loan, that's not smart.

For some people, any problems that come their way is loan related, honestly I believe loans are for those that are running big businesses, not those that have nothing they are running, that's why many end up in debt after taking a loan.