Once again u replied without even reading my post, second time. u might be superman but u cant read such a long thread and type ur reply in the matter of some blinks. anyways i would still keep on answering everything INsha Allah.
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1- I am not worried about fancy words ecoshan. I just dont like fancy words getting in the way of a simple answer. I appreciate your financial experience, but I did work in the investment banking groups of one of teh largest financial institutions so please dont think of me as some business neophyte thanks
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By the way u and Ume-Zafeerah are multi nicks??? u were telling her ke araam se bhi baat hosekti hai and now u r doing the samething. Quote me just one sentence where i said i know more than u do, or u dont know anything or i challenged ur expertise, just show me one post and i'd quit.
What i said was ppl in past used fancy wording like Mudaraba, murabaha, musharakah, Riba, Qadr, riba il nisa'ee just to play with words and to hide the word riba so that ppl could think its something islamic, i didn say u didn know anything.
This kinda attitude really makes me uncomfortable when mature ppl just assume something and make it ego prob. no thanks.
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similar to how your payment for principal is increasing and interest is deceasing in a conventional mortgage and if you think of the interest as the banks 'share' of the profit, you are really not doing anything much different.
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Similar but not same, right?? i told u in the begining that there is a very thin line, u have to leave all ur bias to see that.
millionth time m gona repeat the samething, they are renting money, they are renting money, they are renting money, and rent is decided by the fed reserve, and its totally haram.
but shariah bank is renting the house, and renting a house is not haram in islam, everyone rents, m sure when ur family came to US u didn buy a house the very first day unless u were super rich, must've had rented the house. and the rent is not decided by Fed reserve or islamic bank or u, its decided by taking quoutes from 6 different real estate brokers.
There is a difference between similar and same.
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if the house sells, if your house sells and you have a conventional mortgage you get your equity back too.
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that is true, but what if u go bankrupt??? would u get ur equity back??? no sir u wont, bank would keep all ur equity that uve been paying for years, on top of that bank would also keep ur house and resell it and make more money.
on the other hand in islamic financing u would still own ur equity even in the case of bankruptcy and bank wont take the house back, infact they would try to sell it, when its sold u keep ur share (suppose ur share is 19%) and bank would keep their share (81%)
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ask the lariba boys what happens when the property value tanks. they cant sell the house or the house sells for much below the initial price. so lets say teh $400K house is now $300K, and its sold, what happens. you are saying that i dont lose my shirt?
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i think m really bad in explaining.
Ayite if the house is $400K and u own 50% and islamic bank owns 50% so it means u own $200K and the bank owns 200K, now recession hits ur door and the prices drop, and the house is now 300K, so 50% of ur share is 150K and banks is also 150K. so both of u took 50% of the loss.
BTW wat part of the statements below u couldnt understand and didn show the difference between conventional and Islamic banking??
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Islam forbides u to rent money.
-Conventional are renting money on fixed monthly payments
-Lariba is not renting money they are renting the house which is halal in islam, aur monthly payments are not fixed they keep on decreasing every month.
Islam tells u to do partnership
-there is no partnership wat so ever in conventional system. and they are just renting money.
-In Lariba its pure partnership, both of u own % of the house, u only pay rent for the % Lariba owns. and each month Lariba's ownership would keep on decreasing.
islam wants to share profit and loss
-Conventional there is no sharing of profit and loss, they keep all the proft. if u have 50,000 in ur equity and u have to declare bankruptcy they would keep ur 50,000 and also take the house from u and sell it and keep that money aswell and u are just like a stinky rat on the street now.
-Lariba doesn take ur house, they let u keep ur house and help u to sell it, both of u find a buyer and sell it, they keep watever percentage they own and u keep ur percentage.
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