Business Book Lovers

What should I liquidate right now - mutual funds or real estate?

I want some more cash on hand to clear up a few debts and do home renovations. Should I sell a piece of commercial property? Or sell off some mutual funds that are roughly the same value? Both these things could increase in value and provide income in the future. But if I was going to turn one of them into cash right now, what would be the best choice? And why?

Public Comments

1. What real estate and what mutual funds? Where is the real estate located? If the real estate is currently producing income that is a consideration. If the neighborhood is growing or improving versus declining that is a consideration. Would you be selling at a loss or a gain and do you need the loss or can you afford the taxes on the gain? Is there a market for the property right now? Does the mutual fund generate dividends? Would you be selling the mutual fund at a profit or a loss and what are the tax considerations either way? In general terms, it would appear that the stock market is coming back faster than the real estate market. However, with the recent uptick in mortgage interest rates, which would appear to be the start of a trend, your existing mortgage if at a favorable rate is also a consideration. And finally, for what purpose do you need the cash? Could you borrow the money collateralizing either the mutual fund or the real estate? Far too little information provided for anyone to give you valid advice.