Owning a house

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How important is it to you? Would you do it knowing interest is haram and no islamic loan is available??

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Re: Owning a house

i've saved enuf to buy in cash...so, it's NOT a problem...i would rather buy it NOW when prices are lower but my Bro and Bhabhii don't let me...they think i'll move out then. :(

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Re: Owning a house

Those who know interest is haram and they have no Islamic alternative available and do not have enough cash to buy one they have no choice but to rent and live happily ever after.
But for others there is a very easy alternative it is called mortgage and they can become homeowners in no time and live happily ever after. For me it is important to provide a comfortable home and save my money from renting which can be used for my family's well being. I do not believe that paying interest is haram , I have done my home work.
I am not issuing a fatwa. If you are interested to know why I consider that paying interest is not haram I opened a thread long time ago in these forums search for it.

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Re: Owning a house

If you aee in the us, yes there is Islamic financing available..we almost bought a house but some other factors came in way and we had to delay our plan. I was in contact with guidance, la rib a, and found guidance's system better. If you have any specific questions, call them up or email..they were very quick in responding back as well. We had our pre approved letter in our hand but couldn't move forward due to personal issues.

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Re: Owning a house

Here is the link..

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Re: Owning a house

Mirch uncle plz share link of that thread

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Re: Owning a house

whats actually a mortgage is? isnt is you borrow money from bank to buy a house and pay monthly with interest?

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Re: Owning a house


YES!

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Re: Owning a house

so what is the real difference between guidance financial's 'utility' fees vs interest.
how is it calculated?

and in this joint ownership model, if people who were underwater on their home value vs purchase price, and sold it, was the loss distributed between the two parties as well?

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Re: Owning a house

  1. There is no difference one is called Bhagat Ram the other one has been named Allah Ditta. The Genetic makeup is same. 2.No the so called home owner had to take the loss. Father of Allah Ditta i.e so called Islamic Finance company still does not have to share loss on the market value of the home.
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Re: Owning a house

http://www.paklinks.com/gs/religion-and-scripture/275788-is-paying-of-interest-not-allowed-in-islam.html?highlight=interest

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Re: Owning a house

Islamic banks are a joke. They're no more Islamic then conventional banks.

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Re: Owning a house

So explain teh concept of Islamic Banking for me. How does taking your home loan from an Islamic instituion differ from the conventional mortgage?

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Re: Owning a house

Islamic mortgage play with words to appeal the sentiments of Muslims. It's their marketing strategy and nothing else. Banking is a business and if banks are not making profits they go bankrupt. Islamic banks can't do loans pro Bono...they just use other names for their methods.

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Re: Owning a house

I smiled when I read this as someone who has studied financial institutions knows only too well they're not as Islamic as they come off.

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Re: Owning a house

bebo has explained above.
The only Islamic model of mortgage will be via a bait-al-maal owned and operated by Islamic government. Government builds the house and rents it to folks on rent to own basis. If they want to get out before the term of rent ends , the house is auctioned and if the house fetches a profit government and renter split the bounty , if there is a loss then the renter and government both loose.
Magar iss billy k galay main yay ghantee koun bandhay ga ?

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Re: Owning a house

SO how does it work in Pakistan?

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Mirch, yep we have talked about it before and it's interesting how their service fees are parallel to interest rates. :-)

And if they are not sharing the loss in this co ownership model, then they are all talk and should face a class action lawsuit. If they own 80% and I own 20% of a house and the value goes down by 100K and the place is sold, my loss should be 20K and their loss 80K. Otherwise they are all topi drama.

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Re: Owning a house

you participate with Bank in joint ownership of your property, where the Bank will provide a certain amount of financing. You agree to a monthly payment to the bank of which one component is for use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows.

When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property.