I know there's a few halal options for those that wish to buy a house:
1. Buy a house outright.
2. Pool some money together from friends family.
3. Same as #2 but where there is a queue and everyone eventually gets a house in this group.
4. Housing co-op. To be honest I'm not too sure how this works or if it really is halal.
... and then there is the option of renting a property.
Everyone I know took out a mortage. There are some family that rent but this might just be because they couldn't afford a mortage.
I know that I need to avoid mortage. I need advice! It's really a depressing situation. What did you guys do?
I was looking at new properties being developed which use a shared ownership scheme. Basically you pay £50,000 to own a 25% share of the property. Then you pay reduced rent. Over time you can sell your share or save up to buy more shares and eventually own the property.
Some places cap share ownership at 75% - so you never fully own the property. Even then this would be okay because you can sell your shares which are worth what, £150,000.
I was looking at new properties being developed which use a shared ownership scheme. Basically you pay £50,000 to own a 25% share of the property.
how many people have 50K in the bank though ? Its a lot of money, could take a lifetime of saving. its a good time to buy now, as the property market, is at an all time low, but forking out that sum of money is difficult for anyone. If your not fussy, about it being mod, con etc, then you could prob buy a property much cheaper than that, if you look around, as long as you dont mind putting work into it.
Last edited by Banu_Hashim; 12-29-2010 at 02:15 PM.
Reason: wrong thread.
‘Say: If the ocean were ink wherewith to write out the words of my Lord, sooner would the ocean be exhausted, even if We added another ocean like it.’~Al Qu'raan (18:109)
A lot will depend on where you live. In just the past 2 years my wife and myself have bought 5 houses. We do so by using contracted deeds, It is essentially a lease between you and the owner. You take ownership of the property and agree to pay the seller an agreed upon monthly payment for a set number of years with house being the collateral. You can sell the house with the lien attached to it and the buyer becomes the payer to the original owner.
It is a little more complicated than what I said but it is quite easy once you have done it a few times. Insha Allah We are now putting up the 5 properties we have as collateral towards the purchase of a rather large Ranch . Which should be our last venture into real estate.
Look into the laws governing "Contracted Deeds" where you live and it could be an option for many.
A word of caution you have to buy from an individual and be absolutely certain the deed covers all conditions. We lost our house in Minnesota because the seller neglected to sign all of the papers before leaving the country. We ended up liable for all of the sellers debts and the house was taken from us without notice, to pay them.
Yes, I think they call it a rent to own scheme in UK. I've looked into it, it's not that common but yeah it does exist. I would actually be worried about keeping up with the payments though because the weekly rent is rather high!
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