Topic: Do you think selling your property is better than taking loan? - page 7. (Read 813 times)

It depends on what kind of specific property you are referring to. Moreover, it depends on how badly you need the money. If it's just a small amount then I'll most likely go for loans since properties such as lands can go higher as time passes. However, if you really need a big sum of money then go for selling property.

Things get red, some times, in people's life out of different reasons. But, planning also helps us to outpace such a fast approaching hard experience; running out of funds. Selling items doesn't count neither does borrowing work, as it'll fade off. They're many other ways to get through tough situations. Although not everyone has the facilities or skills that can take them through hard times. Improving situation like you said can mean improving social skills, those we see everyday are our best tools in life. Calling people who are far away for help most times dont provide immediate help compared to close friends who live in the same neighborhood, and understands, first hand, our situation. I'd also add that Op didn't help his friend because he doesn't see him. Seeing can mean love, in similar format those that we see on daily basis we tend to love, naturally. Hence, OP's friend if he has the social skills he would have taken the advantage of the people around him and ask for their help instead of calling his friend in a far place.

And what makes you far from being in a situation describe above? Proper planning? I guess no! but I'm curious if you won't mind sharing the tips. Living in a country with high GDP or well looking environment is never an excuse or will exempt you from being in such situation sometime. I don't think every reasonable human will prefer to live in abjection over affluence. It's not always about planning but sometimes it's also a destiny. The person in the story above is even better having acquired a refrigerator and washing machine, not that they're expensive items but a struggling person will never have such gadgets. There are challenges and circumstances that are actually above your earning and savings combined sometime and you have no option than to to deal with it.

As for me, I don't like anything debt and I prefer to have nothing than to be owing someone. I saved to purchased those gadgets and it's their turn to save me when the need arises. I will sell property instead of taking loan.

If it's only property I have that gives me roof then of course loan is preferable whereas if I have couple, the extra one will go first. I try to stay away from loans as much as possible.

It completely depends on the situation and the individual financial circumstances of the person really. If somebody has fallen on tough times, like losing their job, then they may need some short term cash until the next paycheck comes in if they've been unable to save any money for this sort of emergency. If they are honest on their loan application then they may be rejected immediately because the loan provided needs to know that repayments can take place. That leaves you without the option to take a loan and may force people to sell their other assets, out of desperation. If a person is struggling in such a scenario and you want to help, you need to figure out if it's temporary misfortune or the sign of a bigger problem you may not be able to help like drug addiction.

I wouldn't take a loan and that's what I am trying to avoid at most times. If there are some things that I can sacrifice and I have to sell it if I am in need, I'll sell them.

Because I am trying to avoid the practice of being a borrower because once that I am able to take one and someone grants it for me, it's going to be a hard part on me because I'll think that it's easy to take loan and I may get again after repaying that debt.

I don't want to go into that process and that's why if there are some stuff and liquidating assets that I own, I'll choose to sell them over taking a loan.

To answer this question, I think that it's better to try looking for a loan first because selling your property seems kind of like a desperate measure or you need the money so badly, some aren't even selling their stuff directly, most if not all are pawning them off hoping that they can get back to it again. I think loan's much better than selling because you're removing a function in your house if you were selling appliances compare that to a loan where you don't give away something valuable besides your reputation and integrity as a borrower.

Well, I think the title of your thread is a bit ambiguous here, when I first read it before I read the main post, I thought what OP mean by property is like Housing Property, but it turns out to be some stuff properties.

I think it depends on the situation and stuff that would be sold, some people are actually in a lot of debt, that their last resort is selling their stuff. But again I think selling stuff, and moreover something that is still used regularly is only last resort, I would prefer loan some money.

This is a tricky question as just as sometimes a person can do everything right and still find themselves in a difficult position, at the same time the type of loan and asset will determine what is the best course of action, if the loan has a low interest rate and the asset can reevaluate soon I will prefer to take the loan, however if the interest rates of the loan are high and the asset devalues instead of reevaluating itself then I will prefer to sell the asset.

I don't even fancy the idea of selling properties to settle financial problems because if this becomes an habit nothing will be left with you, financial problems are always around the corners and if one is not careful selling properties to raise money can always be the only option to settle things.  If it is a property that is not very important to the owner then it can be considered for the properties to be  sold out to raise money to solve problems.  Selling properties and taking of loans often to pay debt or solve problems is not the best option,  their should be another option of raising funds for financial challenge.

Having financial difficulty is a normal thing every persons faces once in a while, everybody have been in that position, although I don't like loans but if by inventualy I am the loaner and I don't have enough money to pay back the loan I will just sale my property to pay the loan, selling to pay loan is more safer, I can take a loan fest thinking that I can pay back but if I can't pay back I will sell to pay. Before some is so desperate about money which means he/she is in a tith Conner.

By property are you talking about real estate or are you talking about items someone might own which hold some value like a refrigerator or washing machine.

I don’t really understand this story because I understand that you can live without a washing machine, because you can go to a laundry mat but how do you live without a refrigerator? Sounds like a horrible thing to sell to raise money.

In this situation I think a loan would of been better than selling a refrigerator that you need to cool your food.

Depends on the property and depends on the interest rate of the loan. You should choose whichever is more beneficial to you. What is the annual expenses of the property? Do you pay any taxes? The most important question is, does it make sense to sell it? Is it making you money or losing you money? What is the interest rate of the loan? Is it below the inflation rate or above it? Depending on the answers of these questions you can easily find a solution to your problem. I personally don’t sell any property in this environment but I am full of debt because I took every loan I could when the rates were low.

I hope next time you shouldn't call your other friend to buy someone else property because your friend buy it just for you, your friend have no mean to buy that or helping him. If the property is expensive and there's many problem after few days, your friend will mad to you, not only to the seller.

Depends on the property, if I don't really need it, I will sell it.

But if I only have house as my property, it's impossible for me to sell it, where I sleep then?

Lucky me I am far from being in a situation as described. When I read the story I thought that you live in a low GDP country or in a poor environment even in a rich country.

In the situation you describe, neither of these two outcomes seems ideal to me. The best thing to do would be to try to improve your situation so that this never happens again.

Anyway, trying to put myself in the example described, I think I would choose to borrow. I prefer to have more quality of life while I can, with a fridge and a washing machine at home.

It all depends on the situation we are in. If the need for money is not too great and can be obtained by selling one of the properties that we have at home, maybe that is the best way to borrow money. But if the need for money is very large and it's not enough if you just sell the property in the house, maybe borrowing is the solution.

But some people don't want to sell the property in their house but instead borrow money from their friends but after that, they forget to borrow the money. In this case, I've had this experience enough times where my friend needs $30, for example, and he will repay the loan next month when he gets his salary. But the truth is he forgot about it. And even though I asked him, he just said he didn't have the money yet.

I might sell my property to get the money instead of borrowing because I'm afraid I won't have the money when it comes to paying. It will be safer for me because I am not bearing any debt.

I know that some people face financial problems not because of overspending or financial recklessness. Some might be because of loss of job, health issues and other unforeseen occurrences.

Taking a loan will depend on the repayment plan. If the interest is fair and my income will be enough to repay the loan when due, accessing a loan will be my first option. I am not comfortable with selling my properties because when you have issues with finance people will always take advantage of you. They will underprice the property you want to sell because you need financial assistance. Due to inflation, the property you sold will become more expensive making it difficult to replace. Selling my belongings will be my last resort if other avenues to raise funds fail. But I will never consider selling my refrigerator and washing machine because they are essential needs in my family. Without them, my family cannot function properly. I might consider maybe my television, sound systems, or other less important properties. Nevertheless, anything can be sold if there are emergencies like health issues.

Firstly, washing machine and fridge aren't included in the property.
Electronic goods aren't cashable well enough in an emergency situation, Or if you do have to sell it, it will be priced very low especially by random buyers who are ignorant of your situation. Borrowing is better with the intention that you'll also sell your goods asap to pay off the loan. However, avoiding loans and debt is the average person's top choice.

With you knowing that the person doesn't have any means of repayment for the main time, which is a bad sign for anyone to lend out to such a person looking at it from an economic perspective, But I don't see the idea of allowing your friend to sell a few of his properties in order to solve his or her problem as a wise decision.
 
Since you are not in need of any of those properties, and even if you are providing that he is someone close to you, you will not want to buy his property; it might make you appear to look bad in the eyes of others. It could have been a good idea if you could have held those sold-out properties as collateral in exchange for the amount needed. If you don't like it, such an idea could also have been given to the person you called to purchase those properties. In situations like this, there are higher chances of the needy selling the property for a very lesser amount compared to what the market price will be because of how desperate and urgent he needed the funds. Holding the property will enable him to hustle for the money and come get them back in the near future when they have solved their pressing issues.
 
If I'm to be in any situation like this, I prefer borrowing and using my property as collateral rather than selling it. It's better to use it as collateral and try hard to get the money for repayment, and if things don't work out, then I know I have tried rather than just selling them off. Well, this is just my own way of doing things, as I am not a fan of selling personal belongings, no matter how hard the situation is.

None of them really seams like a good idea to me. Although I think I would choose the idea of selling a property over taking a loan, because I seriously, I don't like worrying about having to pay back a loan I've borrowed. I tend to avoid anything that has to do with loan seriously. But when it comes to selling properties , there are properties I wouldn't like to sell, I will be very picky about it. Maybe things I don't need anymore , I can choose to sell those. But it's best to work hard and have your own money, although we never can tell the challenges that life throws our way next, let's keep hoping for the better.