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A friend contacted me yesterday for some loans, which I declined (with some excuses) because I knew he really had no means of fast repayment. After some time, he called again and requested that I buy his refrigerator or his washing machine instead. Although I don't have a washing machine, but I had no interest in buying anything at that moment, so I contacted another of my friend who bought the refrigerator and the washing machine from that guy.

It's not a surprise that sometimes we find ourselves in emergencies that really require some funds to solve the problem at hand. We all know that life treats everyone differently depending on the country, city, or village in which they find themselves. You can't blame anyone or say it's a result of bad budgeting plans or inability to save for emergencies.

I just decided to put this up here to see what you guys think about it. If you are in a situation that requires some funds immediately, would you go for a loan or would you sell one of your properties to solve the problem? And which of them is a better option, to sell property or to take a loan?

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.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

If in that situation, I need to see what property it is, if it is rarely used and not required, I will sell it. And if it is a great value property such as a house, car, gold, silver, etc., I will consider borrowing money to solve the problem rather than selling my property. For me, selling assets will be considered a last resort when there is no other option, because I think selling is easy but buying back is extremely difficult, especially for valuable and scarce assets.

From the OP's story I think it's not difficult to come across similar situations in my life, I also went through very difficult times when I really didn't have money to spend, and there were times when I struggled with various jobs but still decided to take out a loan with a high interest rate, despite anticipating the risks but really in that case I couldn't have made a better choice. So sometimes life is not always smooth for us to go easily, selling things you can sell or taking out loans are all options to deal with at that time, there is no winning or losing here because inherently such situations we can't anticipate.

Properties are big investment on their own but I choose Bitcoin over them, if you have to sell the property to buy Bitcoin make sure you have many properties, that's when the risk will make sense.

I don't like loans because it's not mine, using someone else's money to invest is a big turnoff for me because my mind will always be there that it's a loan, but selling property is much better than taking a loan, at least you are your rightful owner, whatever happens is still yours, and you will not have to run around trying to settle a debt.

Using what's yours to take risks is better than using what belong to someone else.

I'd rather take a loan option than sell my property. In fact, many people take loans to start a business and succeed but some had failed also. That is why it is important that we know where to spend the money taking the loan and must have good reason, not for pleasure or else, that is the reason to be in a worse situation that we don't expect to happen. We don't have to be afraid of taking a loan if that is the only best option to consider because as long as we can pay it out, there is no problem with that.

If someone is in a truly desperate need of money for covering basic needs or dealing with a serious emergency, selling things which a person can temporarily live without can be a simple solution, and a better one than taking a loan, in my opinion, because this way you don't owe anything. But it's also very important to work on a midterm if not long-term plan toward a more stable financial situation that wouldn't require selling pretty essential appliances just to get by.
If I were in that position, I would sell property instead of taking a loan.

Life is like that, inherently not easy and everyone will have different circumstances, so we cannot give advice to anyone because we are not in their situation. For me, when we are in a difficult situation, everyone will have a choice, and depending on the case, there will be a choice to sell assets or take out loans. In my opinion, any choice is fine as long as we find it suitable and least harmful to us, then it is the right choice.

I was in a similar situation where my small business went bankrupt, and I chose to take out a loan because I could pay off those debts without even thinking about selling my assets.

Based on his example and story, the property that he's talking about are the appliances and not the land properties that we used to believe it is what's being referred to when it's mentioned.

I'll do the same loans if I need a very small amount and that's like to cover for some bills that I need to pay when payday isn't around yet. But I'll refrain to take a huge loan because it also means a huge interest. I don't want to see the bank earn a lot from me while me working my ass off for several hours then they'll go easy with this business.

It really differs as per situation. If I have a business and then it's on the verge of getting bankrupt, to take a loan is the first thing that I'll do in order to save it. But then, there are also other options like giving it up or looking for a co-owner to save it and have it financed by them.

I have done this in the past and it makes sense why you took the decision not to give away money to your friend. With my experience I would do the same. I have two friends from whom I need to recover my money that I lend them interest free because they were my friends. They promised me to give that money back within six months period of time. Guess what is happening right now? It’s been more than a year I am still chasing my money. From this you can imagine easily how hard it is to trust on someone’s word.

This is bad in two ways, first you lose your money and second you lose your friends due to financial clashes. It’s better to keep away such transactions. Just kee it limited to well “friendship”.

Going through a bad financial situation to this degree should be a lesson for the future to avoid being in similar situations. If you had a financial crisis without an emergency situation (accident, fire, tsunami, war), then you must rethink your job and your spending rate, as there is something wrong.
You have to learn that debt is the last thing for you, because if you are used to taking debts, when you have a real problem, you need someone to lend you money, you will not find that person.
If I go through such a situation, I will choose to sell things that are dear to me, or even things in the house. In the end, I cling to things, and if I lose them, it will be a lesson, not because I pay attention financially. I pray that your friend solves his problem.

That depends on what kind of properties you intend to sell, if it's cars and things that you will love that you know you can get right away, it can be possible.But if it's about houses and land, it's better to just borrow from banks.

But if you really need a large amount of money, there is nothing you can do but sacrifice the properties you own rather than take out a large loan and find it difficult to pay it off.

It's called sacrifices, but for me, it I can sell anything, including my properties, then I would do it instead of taking a loan from a bank or from individual. I know it's tough decision to do that, but if you look at the long term effect then it could be good for you, in my opinion.

Although I haven't been in this kind of situation before, and the biggest properties that I sold is my car because that time I needed money and so I decided to offload it for a good price and I just think that I can buy a new one in the future which I did.

To be honest, I'm not used to selling existing property at home, especially if it's property needed to complete the job. As for your story, I think your friend did the right thing where he sold a washing machine because clothes can be washed manually. When the property has other functions that can still be utilized, of course it is not an obstacle so that your friend can get money instead of having to borrow.

Need some funds immediately, why do you need it instantly?

We should have plans in our life and with your question, I think two options are bad and they are the same. Selling your properties is painful. Taking loan is risky.

If you have no choice than selling your property, you should do it rather than take a loan because with a loan, you will have to pay loan interest and if you need to use a collateral for your loan, when you are unable to pay, your property (collateral) will be liquidated.

Taking a loan is never a good decision. It is better to sell your property than to take a loan, because if you can sell your property, then when you have money, you can buy the property again, but if the loan is not returned on time, you may have to face various problems with the loan. Even so, if you take a loan from the bank, you have to keep your property closed, so it is better to sell your property to meet your needs than to mortgage your property to the bank. If the amount of property can be sold, you will never have the pressure of paying off the loan and when the money is available, you can buy the property again with ease. I don't like taking on debt myself it seems like a burden. And I've seen many good relationships ruined by money so take out debt if you can't afford it, no need to borrow if you can afford it.

If it can't really be help, I'd rather to borrow money from a friend that is willing to lend me money without paying any interest. Selling properties is not a good idea, especially if you need it in your everyday lives, especially if it's land properties.

Because when you sold your properties, you will have a hard time to buy that back or to have a new one with the same price and area, while borrowing money without any interest is much easier to pay if you have a plan on how you will make your properties gives you money, like raising livestock and selling them, a poultry, etc.

The purpose of obtaining the loan will determine if to necessarily sell some of my properties, if the situation is very urgent then there is the need to sell some of my properties I will do so, selling of refrigerator or washing machine are equipment or gadget to solve the immediate problem is a welcome idea because those gadgets can be repurchased after the situation is brought to normal, however selling of houses or landed properties is not advisable because those assets do appreciate in values with time thus it's better to find other alternative properties to sell rather than those mentioned.

Some of us have already been in that situation and done exactly that... It's what everyone does basically, we call a friend (friends) and we would try to borrow money without interest, then the bank and higher interest, and if that doesn't cover the problem that has arisen, then something has to be sold... usually much cheaper because we need money quickly.

In the last 8+ years, I had many "fucked up situations", marriage, kids, a new house, renovating, and zillion obligations... In the beginning, I didn't want to borrow money, so I sold a lot of coins (different ones) at very cheap prices. Now I guess it would be better if I took a one huge cash loan and kept coins, but who knew!? :) Now I rather keep coins and I try to take some loan somewhere, it will be repaid one way or another, but selling some coins is one of the last options.

That is actually depends on the situation of the a person. Well taking a loan is an alternate option but maybe we could think that the person doesn't have a stable job to take a loan that might worsen his situation since he can't pay in time. While for the selling some properties you have, you could sell some items that you don't need to use already or you can live in long term without it for example television. I just think that selling some properties in case of emergency is much better if you are unemployed. Because if you have a job taking a loan is the first option as you have salary to pay your debt. But if it's for investment? It's a big NO! Never put money that you would be needing soon to a risky and complicated system such as crypto.

Your friend did the right thing on second thought by selling his property. You can't have a disposable property and wait to suffer in abject poverty. However, I hope your friend didn't sell for some frivolous stuff. I won't sell my property for anything other than emergency or investment. If your friend sold so he could feed himself, he will still sell again to continue feeding. That shouldn't be a cogent reason.

On the other hand, it's a thing with me anyway, I never can bring myself to accept buying a friend's property off them when I know they're selling just to raise cash to make ends meet. If they're disposing the property to create more room in their space or replacing such with modern ones, I can buy. If they're disposing them because they want to move over to a different country I can buy. Other than that, I won't. But I can raise them some cash even if it's not all they're asking for as loan (which I won't be keen on asking them to refund me thereafter.) What are friends for.

When you have an emergency and don't have any savings for that, you should consider all possibilities.  in my opinion, in that emergency, taking out a loan or selling a property are both good options and your choice is up to you. what properties do you own? How much money do you need? and if you take out a loan, can you pay it back on time?...I think as long as you answer those questions yourself, you will know which option is right for you.

Taking the loan is the most convenient way since you can have access on instant liquidity while selling properties will take a lot of time if you need money for emergency purposes. Interest is nothing compared to the time that you will save since interest can be paid while time is irreversible.

You can sell the property afterwards getting the loan if you can’t pay the loan amount using your salary. Selling a property in rush always result to low price which is a bad option compared of paying an interest to a loan.

It all depends on the situation.

The reason why we got a savings account for emergency funds is because of scenarios like this where you need money to buy something or to pay something that's urgent, and was out of your budget. Will I resort to selling my belongings or properties in this case when needed? No for me. I think I'd rather go and take the loan because I think that I can still pay that loan in a few years. The interest is quite high yes, but there's a chance that you will be needing that property that you sold again in the future. I mean if it's that important to you then you will really need it. On the other hand, if you sold some things that you aren't need anyway, and you need money just to pay things then I guess selling is my first option.

Like I said, it all depends on the situation. There are times where you need to take a loan especially if the amount of properties that you want to sell isn't enough to cover those expenses, but on the other hand there are some people who choose to sell things that they don't need just to have money to pay.

You are correct on this, Probably quite reasonable considering the value of the property itself and the amount of money required. If the option is only short term, the loan is much easier. As for the property, it could provide great value in the future. But the friend the OP is talking about is in a state of having no source of income, so selling goods is better than borrowing and not having sure collateral which ends up in long debt.

Taking a loan to fix a problem is good and I encourage it if only the interest rate is low. This problem could be investing in a business that the individual knows that the profit will be fair. But if the individual has a health challenge or a wants to buy a liability with the loan, I strongly advise against it . My advise would be to sell their personal property. The only issue here is that the price you sold the personal property is not the same price you would get it at when you intend to buy a new one. Whoever finds themselves in this situation and is thinking of what to do should think critically about their options, the pros and cons.

For me personally, reselling property is a bad habit that can be addictive.

I admit that we do not rule out going through difficult times which demand that we have to make decisions in emergencies for sudden needs. I've been in that situation and I've been through it, but I don't sell things to make money. I am lucky to have friends who are always willing to help when I need help.
I offered bail, but they refused. Maybe it's because I don't often ask for help or they already trust me so when I ask for help they say yes.

Firstly I think I would prefer to know if the loan am taking requires an interest, duration of repayment  or collateral before the loan will be given to me if it is zero percent interest, long term repayment plan and zero percent collateral then taking a loan will be the best option for me but in the case where I have to pay with interest or the repayment time is short and there is a collateral attached to it, I think putting my property up for sell will be a better option considering the kind of situation am facing at the moment.

Well the two options depends on what is on ground at the moment and the reason why your in need of money, if the reason why you need urgent money is to sort out a business project since at the end you will make profit then going for a loan to execute the project is a better option but of it is a personal stuff or a health issue I think selling off some of your property to get things fixed is the better option.

Health issues require urgency so whether loan or selling your property can be implored because if you are alive then you can achieve more than what you have lost either the loan or property.

In this case now, it is better to use what you have to get what you want but depending on one's capacity because an individual knows their capacity.  Selling the refrigerator and washing machine will be at a low price than the current price in the market and taking of loan comes with an interest, this is a dilemma but I think who wears the shoe knows where it pinches because if you go to rebuy those properties, you definitely going to buy them at a price higher than you sold because of inflation. Well, it all depends on the remedy that comes first because to safe a life is very important. It is the living that can own property, a dead person owns no property. Do what you need to do to safe a life.

Selling his property was his last resort since the people he must have asked for a loan all declined in helping him. So since it was a challenge to him, he has decided to get the money he needs with what he has since he will not have to repay anyone. It can be a tough choice to make, but instead of stealing or leaving the challenge unattended to, selling off something you do not need can solve the challenge. Rich people with better properties that are assets like land usually can make sales in time of financial need to sort the problem out. Your friend is doing the same, it is just that in his case, the property he is selling is not an asset, and he will sell it at a price lesser than what he got it because he is in dire need of the money.

  Sounds like a horrid situation to me. It also looked like your friend was really out of options as he decided to sell some of his properties. In some cases, maybe most, property can be considered an investment, but in relation to your story,  a used refrigerator and washing machine would definitely lose value from the initial price when it was acquired, so not really an investment.  
 
  In regards to your question of which is a better option; to sell property or take a loan... it all depends, if you're on a steady income and certain you can pay back what's owed in due time, then I'd advice you take a loan. But if the case is the opposite and critical, then I think you can consider selling property if you can handle the discomfort from losing such items.

  

I will look for a loan and make the property as collateral, simple but will give confidence to others to provide a temporary loan when the due date for repayment has arrived. In principle, it is almost the same as what is done by the bank when the customer applies for a loan.

Building connections, maintaining good relationships, and caring for the trust of others will be very helpful if a situation like that happens to us. Return to each other in taking a stand if one day you face such a situation. What is certain is that helping others is kindness and repaying a loan is an obligation.

Selling the assets is not the good option,because once you sell the property.It’s very hard to buy the property again after selling at the same price.If you consider the property like the land,it’s not easy to buy the same land at the selling price.Mostly the reselling price will be 20-30 percentage from the sold price.So it’s the only reason for the people avoid of selling the asset as compared to getting the loan use their asset.Some people use the gold to get the loan as compared to use of asset for the loan.

It depends on my finance how much money I need. If someone need little money then I think it is better to borrow money but if someone refuses to pay that money then it is not bad if money is available in exchange for some assets which are not much needed. Bank loan is not good but can be taken depending on the needs. There are many who may have assets or furniture which they have no desire to sell and if possible, take a bank loan. Basically, they are eligible to take bank loan who have enough ability to pay back the money.

Financial challenge is something that once happened to a human being and it is a beginning of any person story that is why almost every one experience a financial challenge, I don't want to say much of financial challenge because it's everywhere, selling of properties because of a financial challenge is not a bad idea but the stuff is that can you put the money you realize in your property in place that will give you what you want or needed and establish what that restrict you of having another future challenge.

I have seen many big men who take a loan if it is available and pay back, rather than sell their property. Many of the times the issues that seem to prompt one to make such decision might simply slide or become better than the way it was presented.

Unless the reason for taking the loan is pressing, a loan request might require collateral incase one fails to payback, while selling a property of same equivalent amount might even make money available for other investment reason.
Taking a loan is how the rich get richer most times, because they have the mindset to take risk and can cover with insurance or collateral.

If I have a property to sell, for a good need, I would. Unless such a property is too valuable to lose, then taking a loan might just be better. Otherwise, I will ask my friends rather than go to the bank.

I don't think selling your property is better than taking a lone. Your property is your asset, this is what you have acquired for yourself, the value of that especially on good properties would always rise.

Also on the other hand most billionaires never sell their property no matter how important the project they have at hand is, they don't even use their own money most of the time, the always prefer taking a loan, it could be from the bank or companies, this has been their financial idea that has always worked for them.

if choosing between borrowing or selling this is actually a difficult choice, of course it's better if we use our own emergency fund if we have one.
in my opinion it depends on the conditions faced, whether we really need it quickly or if there is a time limit. for sure it is better to avoid applying for high-interest loans.
if it is for a truly emergency situation and we must urgently need money. borrowing money from friends, close relatives or family may be the first thing that comes to our mind.
if we don't have an emergency fund or maybe we don't have enough funds and we are urgently need money to solve the emergency problem, then of course borrowing from friends, close relatives or family is a better choice because we already know the person we are asking to lend money to us and may not charge high interest rates.
in my opinion, selling an item or property that belongs to us is not efficient when we need funds quickly because it will require more difficult time and effort and it is certain that if we rush we will sell it at a very cheap price.

I'll pick the one that will give me peace of mind after I have used to money to sort out the problem. And that is selling of my property. I can always get it back. Infact it is even better because getting a new one means getting a newer model or a better one than what I sold out. Secondly, I wouldn't be under any pressure to replace it immediately. I can do that at my place. A loan cannot afford me this as I would have sleepless night planning on how to repay the loan to avoid a dent on my credit score. There would too much pressure on me to meet up. And right now what my life needs is calm not chaos.

Selling real estate is not always the right decision. Depending on the economic situation, the price of real estate can start to skyrocket and you can lose a lot of money. A loan, on the other hand, is fixed, so unplanned losses are excluded. Therefore, a loan is better in some cases

I’d also prefer borrowing an amount that I know I can easily pay than to sell my electronic appliances and deprive myself from living a comfortable life. Also, selling second hand appliances will only have a depreciating value so I think it’s not worthy after all. However, if you can avoid doing them both and just go for an extra work to gain additional income, then that would be better so you won’t leave yourself paying the consequences of your own action.

In my personal point of view, I will say that taking loan is not that kind of bad things but there is a terms that is where are you using it?
I don't think taking a loan is bad because if you see most of the big industries or businesses take loans to grow them in the initial stage.
But in terms of your friend, he has taken loan only to fulfill his personal wishes and desires which actually has no good side or out come. In this case, the purpose of taking a loan wasn't good at it all, then how I will tell you what  could be better to take a loan or sell his property.   I think there is no need to take a loan if there are all these reasons.
However, emergency situations can be of many types, such as people's physical diseases, I have seen many people selling their properties due to this. In this case, I will take it as the main reason for selling their property, maybe they did not have the ability to repay the loan amount, so maybe they sold it, so I would also say their decision is right. But if such an emergency situation comes to me and I have the ability to repay the loan then I will not sell my property.

Well no one prays for bad things to happen but most times their are things which we really don't plan for that do comes our way, and if those unavoidable moment Hits my door step and I have tried every possible means of getting money and yet my efforts seems useless, then I will have to make a choice from your above listed 2 option which will be loanin. I will have to take the option of taking a loan, reason being that I can't afford to sell off my property very cheap as no one will price it high base on the urgency.

I will look for where to get a loan, use any of my property which will worth the loan amount as collateral, then I can place anything which I don't need for the moment on sales  when I get my hands on some good price I will sell it them take the money and pay off the loan I took. And solve my problem, when ever I have enough spare more then I can make a move to recover those things that I have sold out during my crisis.

Sometimes people go through such bad times that they try to solve the problem by selling what they have. If he wants to take a loan and does not have the ability to repay the loan, then the better option is to refrain from taking the loan. Because this bad situation will create more pressure with the loan, which will lead him to worse situation.

Washing machine, refrigerator, these are electronic goods, these do not actually fall under the category of property. If he wants to sell these goods, he has to sell them at a much lower price than the purchase price. So here confusion arose between property and electronic goods. However, I think since he has no savings and would struggle to repay the loan, selling his refrigerator is not a bad move considering his current situation.

I will not consider taking loan as a good idea as it can be dangerous for us to give that loan back to that person. Selling something that is necessary object of your home is also not good idea because you will hardly buy these things again.

It will be better if you save some amount of money on monthly basis so with passage of time you will save large amount of money which you can invest in something useful for fruitful future. So in this case you will not sell your property as well as also will avoid taking loan from others.

Selling landed property for the purpose of investment is better but for that reason which don't provide you profit is useless.

Sometimes selling your property or item that you really need just not to take a loan is sometimes painful because you need it, but if you just sell it just because you don't need it and yet you just need money then it is okay to sell it , and the advantage of it is there's no loan that you need to pay and you don't need to pay interest as well, so like me I will just sell my property than taking a loan as much as possible.

you have really helped that person even though you didn't give him a loan, but Anag helped sell the belongings of the person who needed it.

actually i don't really mind loans, if i really need it in large amounts what else when it's urgent then i will apply for loans to friends, relatives or banks ^{(when the person concerned can't give me a loan)}
we will not know what will happen in the future, so it is very important for us to make as much money as possible while we are still able to make money, don't let it happen when an emergency or urgent happens, we are confused where to look for money. 

Any firm that is dynamic and always moving can benefit from taking out a loan because a retailer has entire freedom to invest his funds as he sees appropriate. The constant profit and business outcome are essential considerations. Any lender is simply concerned with repayment or return in accordance with their "rate of interest" or "terms and conditions." As a result, anyone can establish a business with the help of a loan of a specified amount based on the investor's credit worth and capacity. There are many financing packages for small and large firms. In this age of digitization, different digital lenders offer loans in a simple method that can help any aspiring business owner. In general, any organization that has a specific outcome or efficiency can benefit from taking a loan.

It depends on the situation. If it is possible to sell a property quickly, I will consider this option first. But if it is unlikely to get money quickly from selling a property and it is very urgent to get money, I will try to get a loan from my close people, especially from my family members. Taking a loan for urgent needs is understandably, everyone must consider this naturally. However, if it is for unnecessary thing, taking a loan should be avoided.

Which one is better, selling a properly looks better but it is not always easy to sell it quickly. Taking a loan can be the option if it is in a very urgent situation.

Everyone's condition is different and we cannot equate our experience. And basically, I believe that every decision I make is the best, even if it looks sad or not good from other people's point of view.
Regarding your friend who prefers to sell his property instead of going into debt, that's also his decision. And in my opinion this is quite wise. Maybe he really is in a difficult condition and does not have enough money for some reason.
FYI, I've never been in a situation like this. As long as I still have goods or anything that I can sell at critical times, then I'd better sell it, let it be one day when I have the money back, I can buy it. Instead I have to take loans, because this will only make it more troublesome. not to mention if we can't pay the debt when it's due, this will become a more complicated problem.

I’m the type of person that don’t like selling my properties. I’d rather give them out than sell them. But the question you asked is kind of an interesting one and one will ponder which to go with, either selling of property or taking loan. Since I don’t like selling my properties, I would rather go for a loan but it’ll still be with a condition. The condition been that I’ll not inconvenience myself in order to get to pay back the loan, if not I will go with the option of selling my property. Sometimes having valuable assets at home helps when you’re in dire need of money to solve a problem. It is better to solve your problem within yourself by using what you have than having to solve it outside with tensions keeps ringing in your mind on when to pay back.

I absolutely believe you did the right thing by not given him the loan he requested from you you knowing fully well he has got no means of repaying anytime soon. Howbeit the diplomacy you played out by bringing in someone other than you in buying his property vindicates you of your excuses of not having money to loan him.

People make mistakes of loaning money to a person you clearly know doesn't have a means to repay the loan under thee sympathy of friendship, and later mounting of pressure to retrieve your money may end up posing a  threat to your friendship. Certain things are better avoided than tolerating.
Things happen to people, challenges we never plan for and it's alright if we decide to sell a property or go for a loan to cover for the challenging need. In a situation I have no eligibility or access to a loan I won't hesitate to sell out my property to solve the problem.

Good a thing I have a property to sell to solve my  problem when access to loan fails. What if I never had one in both options wouldn't that have been worst?

This thread's title and its example in the opening post is totally different at all. Most people would assume that property means real estate property but honestly in whatever case it is, taking a loan with your property as collateral is always the better choice instead of selling those property. Isnt this the sole reason why people are hoarding real estate property? to use it as leverage on potential future loan

When we are faced with an urgent need and must be hastened. There is always a choice between selling property or borrowing. And I chose to borrow from other people on the grounds that by borrowing from other people I felt there was more demand to return it immediately which made me have to work extra hard to repay the loan. Meanwhile, if I sell a property, I don't feel there is a demand that the property be returned immediately, which makes me relax.

  And one more reason I don't sell property and choose to borrow is because when faced with a sudden need, I tend to sell the property at a cheap price, even below the market price, so it will make me lose money and I will always try to avoid that.

My choice will be to go for a loan. When it comes to property, it won't decrease in value over time. Over time the value of the property will grow high based on the location. Next thing it is possible to keep the property as collateral and get loan which needs to be paid regularly. When you have got a job that pay regularly, it'll be easy to settle loan within specific time period. Same time it is also possible to make some earning from the property and regularly pay the loan from the money earned. So, my choice will be a loan and not selling property.

Depends on circumstances.
If the property that you would be selling is a property not being used anymore then that would be a better thing to do but if it is  then you should be using the money from it on something which qould be profitable or more useful. With regards on taking a loan I guess it depends on urgency and utility of where would it be spent simply because this is a borrowed money. If it will just be spent on "want" then you are simply giving yourself a headache. But between the two? Taking a loan would be better for sure in most instances. A property's value especially if it is a land property would increaase in years.

Everyone chooses to borrow compared to selling property like your statement above, the need to buy a refrigerator and a washing machine is not a big cost requirement with an estimate of under $ 600 is enough to buy both of medium quality goods, so there is no reason to sacrifice property investment for low needs but he can apply for guarantees to get loans from other people when the status of employment is down due to inflation occurring in various countries. He had to get another job to repay the loan on time so he would gain the trust of others if he asked for another loan in the future.

I think selling a property is the first step to be able to get money or additional capital, and we must predict that taking a loan is the last solution because we must pay more because of the interest that is usually high, of course not all of our financial plans are successful because there are many obstacles or challenges, but as long as we can focus on the goal we will be successful.

I don't know where you came from, but we both have a double meaning of "property, which is either land or a house, and assets, like appliances or anything that you have that you can sell, like phones or even shoes. I have really experienced this a lot before. When I was too young, my mother would always pawn her phone or ring, but this was only when the amount needed was small because she tended to pay it and was able to get the money. When the amount needed was big, she would take a loan and pay it in installments, but again, this kind of loan has high interest.

Borrowing money is never bad, but borrowing money without a plan to repay it on time will lead to bigger problems in life, so people advise each other to limit borrowing. And as you said, as long as we borrow money for urgent purposes, it is very normal to borrow money. Even there are many people who see borrowing money as a motivation to help them try harder in life. In other words, borrowing money or selling property is bad or good, depending on how we see it and our intended use.

I also got confused by OP's question, I initially thought they were referring to land properties which are usually sold for financial purposes. However, when I realized that they were referring to items, it was easy to answer that it would be taking loans for me. Selling secondhand items are hard and can be so cheap right now so it wouldn't really be that worth it.

Op what you you refer to as a property is just electronics, they are not property in a real sense.
Getting a loan is not a bad idea but it depends on the repayment plan, the interest rate, and what you want to use the secured loan for.
Before you approach a loan facility or individual registered lenders, there should have been a perfect plan to invest the loan in something profitable in other to fast-track your repayment process.

Selling your property and taking a loan, none of these approaches is good, and that's why we need to build our skills and save for emergency and unplanned expenses to avoid the occurrence of this, I know shit happens, but we have to do what we can so that matters will not escalate to this extent analyzed by op. 

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.

 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.

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.

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.

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.

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.

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).

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.

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.

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’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.

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.

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.

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.

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.

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.

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.

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.

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.

"$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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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 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 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.