Buying a house

SOULSEARCHING

SOULSEARCHING

Hakuna matata
VIP
How many of you have brought a house in th west?

Is it worth it ?

I've heard it's Haram, because of interest , but I don't know why interest is Haram.
 
A

Ayubi

I heard mortgage is Haram as it includes interests. You can save up your money and buy the house all together without including mortgages.
 
Helios

Helios

Certified Liin Distributor
AQOONYAHAN
VIP
SOULSEARCHING said:
How many of you have brought a house in th west?

Is it worth it ?

I've heard it's Haram, because of interest , but I don't know why interest is Haram.
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Interest is unavoidable in the West anyways our whole systrm runs on it

Others can explain this better but, interest is a percentage fee being fixed to a loan. The creditor affixes a certain interest based on risk levels and the amount of the loan. It's haram because the person in debt has to pay more than what they borrowed and the creditor profits from this.

Nothing productive is being added in a interest based loan compared to trading stocks. Where you are giving a corporation cash to invest and grow and in return receive a dividend of the profit.
 
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astorecalledkmart

astorecalledkmart

Interest is haraam, but Islam is a religion of reason. If someone is starving and there is no other food, they are allowed to eat pork. Most Somali immigrants cannot buy a house outright. People who demonize mortgages want Somalis to stay in the ghetto forever. Next thing they'll say is that student loans are haraam. They want Somalis to stay ignorant, then get killed by shootings in the ghetto
 
416

416

Lmao
astorecalledkmart said:
Interest is haraam, but Islam is a religion of reason. If someone is starving and there is no other food, they are allowed to eat pork. Most Somali immigrants cannot buy a house outright. People who demonize mortgages want Somalis to stay in the ghetto forever. Next thing they'll say is that student loans are haraam. They want Somalis to stay ignorant, then get killed by shootings in the ghetto
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You could easily just rent an apartment that’s not in the hood. The total costs of renting for 20 years is still less than a mortgage in today’s market.
 
R

Ras

It's all so tiresome
VIP
SOULSEARCHING said:
How many of you have brought a house in th west?

Is it worth it ?

I've heard it's Haram, because of interest , but I don't know why interest is Haram.
Click to expand...


There are more expensive "halal" mortgage options available and cheaper ones on the horizon.

BTW if there's no alternative available then in Islam you could mortgage a house using conventional finance.

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Whether it's a good idea to buy?

It depends on your lifestyle but Imo even if you move around a lot it's still a worthwhile investment if you can find a good deal.

Everything is overpriced at the moment.

Probably be better off leaving your down payment invested jn the market until the housing market cools down.
 
astorecalledkmart

astorecalledkmart

416 said:
You could easily just rent an apartment that’s not in the hood. The total costs of renting for 20 years is still less than a mortgage in today’s market.
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A house is a proper investment. Rent is paying someone else's mortgage. Again, the issue could be extended to things such as student loans.

Riba as a concept refers to the exploitative accumulation of wealth over and beyond the principal value of the loan. Surah al-Imran and al-Baqrah both prohibit "devouring" interest, i.e., you being the one to charge and benefit from interest. You as the victim of interest are in a different predicament which is not one of condemnation, but rather of pity. In a mortgage, you're the victim. If Muslims don't buy property and improve their fortunes, we'll be stuck dealing with interest forever
 
416

416

Lmao
astorecalledkmart said:
A house is a proper investment. Rent is paying someone else's mortgage. Again, the issue could be extended to things such as student loans.

Riba as a concept refers to the exploitative accumulation of wealth over and beyond the principal value of the loan. Surah al-Imran and al-Baqrah both prohibit "devouring" interest, i.e., you being the one to charge and benefit from interest. You as the victim of interest are in a different predicament which is not one of condemnation, but rather of pity. In a mortgage, you're the victim. If Muslims don't buy property and improve their fortunes, we'll be stuck dealing with interest forever
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A house wouldnt be a proper investment if housing prices weren’t so inflated as it is rn. Might as well use the money you saved up as down payment and open up an investment portfolio.

so what your saying is, Muslims should engage in riba to get the upper hand or do you mean we should save up money and pay the entire amount straight up?
 
astorecalledkmart

astorecalledkmart

416 said:
A house wouldnt be a proper investment if housing prices weren’t so inflated as it is rn. Might as well use the money you saved up as down payment and open up an investment portfolio.

so what your saying is, Muslims should engage in riba to get the upper hand or do you mean we should save up money and pay the entire amount straight up?
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An investment portfolio has greater risk, and your returns often get mauled by the bank or banker you use. If you're savvy, you can get better returns by investing on your own, but few people are, and its still risky. Real estate is almost always a good investment. You are purchasing a hard assets, not some nebulous concept. It is folish though to buy in certain markets at certain times

It's infinitely better to pay in cash and avoid riba. All I'm saying is that Muslims need to escape the poverty trap. Once they do, we'll be able to open more halaal banks which avoid riba altogether. Until then, riba is a necessary evil for most people wanting a house or university education in the west who aren't independently wealthy
 
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D

Desert Flower

VIP
astorecalledkmart said:
An investment portfolio has greater risk, and your returns often get mauled by the bank or banker you use. If you're savvy, you can get better returns, but its still risky. Real estate is almost always a good investment. You are purchasing a hard assets, not some nebulous concept. It is folish though to buy in certain markets at certain times

It's infinitely better to pay in cash and avoid riba. All I'm saying is that Muslims need to escape the poverty trap. Once they do, we'll be able to open more halaal banks which avoid riba altogether. Until then, riba is a necessary evil for most people wanting a house or university education in the west who isn't independently wealthy
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I agree. May Allah forgive us. My dream is to save money for my children so that they don't have to take out loans for school like I did.
 
416

416

Lmao
Desert Flower said:
Where do you live? I'm assuming Toronto based on your username. Good luck saving up a million + dollars to buy a home there. As @The Good said, interest is embedded in our financial system and unless you want to live off the grid and pay cash for everything, its unavoidable. I believe that Allah is Just, is All-Seeing and All-Knowing, and the intentions of one who buys a home in order to not live and raise their children in a ghetto, violent neighbourhood is seen.

My issue with Somalis who say that buying a house is haram is that they typically cherry pick the deen to suit their needs. As I've mentioned before in another post - what is the alternative? Paying rent? Well that is paying someone else's mortgage. Is THAT not haram then? Rent is expensive and precarious and your landlord can tell you to move because he/she needs the unit for his/her own personal use. Do you/your family want to live in constant fear of being evicted in an instant?

I've noticed recently that there are ALOT of xaasid, jealous Somalis who regret not buying homes 10 -15+ years ago within the Toronto/GTA area when homes were affordable and are using the deen to justify their financial ignorance and low income situation. It is frankly embarrassing now to say that you live in TCH in 2020. This wasn't the case 15+ years ago. So to those people, I pay them dust.
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I’ve already accepted that I’ll be renting for the rest of my life unless Allah blesses me with extreme wealth.

Avoiding interest is impossible in the west but We should try to avoid it as mush as we could. Lots of the people back then who were getting accepted for TCH were claiming to be single parents while they were married so they shouldn’t even talk about what’s haram or not.

I’m not sure if you could constitute renting as being haram since the only other option would be getting a mortgage from the bank or being homeless; and like the how the user said Islam isn’t a strict religion, if there’s nothing to eat than you could eat pork.
Tbh, I don’t know the ins and outs about Riba so don’t take my word for it, ill have to ask someone more knowledgeable in the subject.
 
astorecalledkmart

astorecalledkmart

416 said:
I’ve already accepted that I’ll be renting for the rest of my life unless Allah blesses me with extreme wealth.

Avoiding interest is impossible in the west but We should try to avoid it as mush as we could. Lots of the people back then who were getting accepted for TCH were claiming to be single parents while they were married so they shouldn’t even talk about what’s haram or not.

I’m not sure if you could constitute renting as being haram since the only other option would be getting a mortgage from the bank or being homeless; and like the how the user said Islam isn’t a strict religion, if there’s nothing to eat than you could eat pork.
Tbh, I don’t know the ins and outs about Riba so don’t take my word for it, ill have to ask someone more knowledgeable in the subject.
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InshaAllah it isn't easy bro. As was mentioned above, may Allah SWT make it easier for us
 
SOULSEARCHING

SOULSEARCHING

Hakuna matata
VIP
I work with a Pakistani lady, she told me she has insurance for everything life, health, car , mortgage, I said isn't Haram and he reply was God knows what I'm doing.

??
 
kickz

kickz

Engineer of Qandala
SIYAASI
VIP
SOULSEARCHING said:
How many of you have brought a house in th west?

Is it worth it ?

I've heard it's Haram, because of interest , but I don't know why interest is Haram.
Click to expand...

There are Islamic Lending companies that help you avoid Interest when buying a house.

Guidance Residential is a big one in America.
 
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