Interest - based financing:

This is what I was confused about. If these Islamic mortgage companies are also borrowing money from the high street banks doesn’t that constitute as still "dealing with interest". Even worse, you're getting a bad deal!
I am afraid I am not quite privy to the finer details, or the under the bonnet handshakes, but some years ago, when was in the market for one of my earlier commercial investments, I researched the matter, contacted a handful of those firms, and even had a mortgage issued by one of them, which was how I found out about their methods. For all intents, and purposes, they are just similar to your local high street banks; there is even a small charge of what is being classified as a 'profit' fee (7asir, fasir), and their billing is managed by a third party, most probably by one of the bigger banks.

Ive never heard of this, that is interesting. It is for my own use.
interest loans=okay for personal use, and not okay for profit?
Yes, according to Al Azhar scholars, if one's intent is to purchase a family home, and not commercial 'in the West ', where no Islamic financing is available, I think that is one of the requisites, then one could take out a mortgage.

Do run it by, consult your local Imam; hopefully, he is acquainted with financing minutiae.

Postscript:
Good for you for looking into real estate; it is a great investment with a decent ROI, not to mention equity. Not the best time for a first time home buyer, with the interest rate and inflation being rather high, and considering what is unfolding in the banking industry at the moement, but a great time for an adventurous investor. Best of luck.
 

Yaraye

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How is the hunt coming along, by the way?
I plan on starting the hunt in a year or 2. I've recently gained weight. Gotta look my best to catch the best

Spongebob Squarepants Nickelodeon GIF
:gaasdrink::gaasdrink:
 
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Good for you for looking into real estate; it is a great investment with a decent ROI, not to mention equity. Not the best time for a first time home buyer, with the interest rate and inflation being rather high, and considering what is unfolding in the banking industry at the moement, but a great time for an adventurous investor. Best of luck.
Thank you for the advice!
I wanted to buy a place instead of renting. I don't think renting is worth it at this point. Its getting expensive and you're basically paying off someone else's mortgage.
The interest rates and even the housing prices are a bit high where I live. I don't think I'll be buying a house in the short term. Wanted to figure out this whole mortgage thing first.
 

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