@@practicalislamicfinance what is the solution? If not we won't have options to buy homes. How will islamic finance companies make money via trade/business to continue the business
Hard to do but I think putting basically all your wealth into it and perhaps borrowing from relatives and family members are the only options. At least if there’s more to be paid then they can be paid sooner
the only thing i will disagree with here is unpick is correct, unpick = to undo or take apart something that has been picked or sewn together. AND unpack = To remove the contents of a container, or to analyze or explain something in detail. so ill say Unpick is the correct word to use in this context
Very calmly and logically explained. This is how refutations should be - not shaming and mocking, but focus on calm, polite and logical exposition so the listener can judge for themselves. However, I definitely (and respectfully) do not agree with his point that Brits should be learning English from Americans! 😅
Really interesting topic and easy to follow what has been a murky world for those of us not versed in islamic fiance. Please can you review pfida mortgage available in the UK
The extra amount is how lenders make money. It isn’t really hidden like an interest rate is. It’s a better financial decision to take a conventional loan if you know you’re getting an inheritance to pay it off, but it’s the honesty that matters.
i mean they are both riba based, one is in your face, the other is disguised with rant, but at the end of the day they both want to profit from the buyer's need of money
It's almost like ppl who want to own a home should save the money and buy one while accepting the possibility that they may never have enough money to do so (it won't make a difference if you owned a home or not on the last day). And, ppl with more money than they know what to do with should lend ppl money and only intend to receive back what they let the ppl borrow while keeping in mind the virtue of forgiving debts.
@@practicalislamicfinance Salam aleikum brother, Could you explain more about this commercial way? Already alot of people have asked you about a follow up in the comments. Jazakallah Khairan
Great video, would appreciate hadiths backing up what is halal/haram rather than logically 'unpicking' the current islamic mortgages on sale, even though I do agree with what was said, hadiths would solidify your arguement more.
There are no hadiths discussing musharaka or murabaha. There is no agreement on what exactly riba was. Was it interest (conventional view) or arbitrary exploitation of debtors (modernist view) - redoubling of unpaid debt?
Your content is very important, and more power to you. But Fiqh is firstly taken from scholars, books are tools. Our deen is based on isnad. You're basically doing ijtihad and don't have ijaza in the field, but you should obtain it.
@@n.a.1397LOL don't need a scholar to tell you what is CLEARLY wrong. Now if he makes his own idea and says its islamic that's a different matter. Scholars have already refuted these so called Islamic banks anyway if you don't like to use your own brain at all
Spot on. This video is "unpacking* the arguments, in a derogatory tone mostly, probably to sound a bit funny, but without a deeper understanding of the topic. While the arguments are generally OKish mostly, but they can always be countered as well. It would help that before posting a video like this, you had taken the time to engage with an islamic finance scholar. It is a disservice to yourself and the audience that you take up such an important topic without due qualification.
@skhan_28 The same argument can be made on IFG's take. And to be perfectly honest there are very few (if any) people out there that understand both finance and Islam to a level needed in these situations. So in any case, why take a risk when it's not guaranteed that Islamic mortgages are acceptable, particularly when we know the consequences are severe.
Asalaamu'alaikum...Masha'Allah great video.... would it be better do get a conventional mortgage or better yet, just keep on renting to stay clear of riba and what is a grey area... leave which you are unsure of
Generally speaking 2 options: 1) Diminishing Musharaka 2) Murabaha 1) Financier/bank/investor and customer jointly purchase a property. Customer who stays in the property pays rent on the portion they don't own and has an option to buy equity back from the financier. 2) House sold at cost plus a mark up
The issue with the Islamic mortgage is they take far too much rent e.g. I’m paying £900 in rent and my capital payments are £500 per month. This isn’t fair. They make more. They increase rent payments based on interest rate increases.
Great video 👍🏽 What does "Sharing in the Outcome" in a true partnership actually mean? Does it imply a 50/50 distribution of profits, losses, and risks, or can partners agree on a different split, such as 60/40? Is there any evidence (Daleel) suggesting that a partnership must have an equal division of outcomes? What are your thoughts on the opinion that two-in-one agreements are Haram? What are the evidences (Daleel) supporting this view? جزاك اللهُ خيرًا
Please post a video with sharia compliant alternative and also cover whether such products exist or are likely to be available in the near future. Jazakallah
asalam aleykum you have explained well what they are doing wrong jazaka Laah. Can kindly do a vedio on what exactly needs to be the correct halal way to deal with this issue of morgage/islamic
As salaamu alaikum, I’ve just come across this video. I think the company Pfida genuinely fixes these problems of the Islamic mortgages and they are the only one in that model where you are under no obligation to buy so there is no debt. If you have the time please do check it out in sha allaah
Valid points! Is it fair to say that islamic mortgage providers are taking less risk (vs the borrower/client) and making more money as compared to traditional banks?
undoubtedly yes in my opinion. Listen to what he says from 7:40 to 9:01 Islamic bank is basically guaranteed the full interest/“profit” amount. With conventional bank, it would depend how early you pay off the loan, The earlier it’s paid off the less interest.
i think with musharakah theres a stipulation aswell where if the person defaults on the loan their amount is returned vs a conventional loan where their loan is not returned and the house is foreclosed on i might be wrong but this is something I've heard
Can someone explain how renting is technically permissible? If you think about it, you end up paying the same if not more over say 30 years than if you were to take a conventional loan and buy a home at the same value (especially with these inflated rent prices). You borrow the apartment/property without ever actually owning it at the end and if the place isn't already paid off, you potentially use it to pay off the mortgage indirectly. Is it halal because you don't ever get to own the property and the landlord decides how they want to finance the place?
You are right. The financiers are just using a bunch of arabic / islamic terms to legitimise the produc... it's defacto interest based. As was mentioned in the video, the ones who heavily promote Islamic finance are the ones who benefit from it.
I have always agreed with Rakan....but not this time. He is not considering the sharing of risk aspect that is key to an Islamic mortgage. In interest-banking, in case of default, aperson ends up losing not just what he used the money for, but also whatever asset he had prior to the loan, until he pays off the loan. Whereas in Islamic mortgage, the loss is shared! That is a BIG DIFFERENCE! Not only that, if a person is unable to pay off the property share, the property is put on sale, and the borrower will still get back a proportion of what he paid to the Islamic bank for his share. So you dont lose the entirety of your investment.
Thank you for your amazing research and information spreading, your videos has been very much helpful to me and im pretty sure to many others. However, was just wondering if you can give details about leverged currencies to trade on spot market, example btcup/btcdown/bnbup...etc
I agree with his view of Islamic mortgages and financing. I suspected than the things he says were true - that there is no sharing of the outcome - there is no sharing of maintenance and expenses, and that 'rent' on the bank's share of the house is just based on interest rates, and that the payment schedule is based on a fixed markup price than does not change if the market price of the house changes. So I am gratified to have him confirm these things. It makes common sense that since you are using the bank's money to finance your house purchase you have to compensate the bank just as in a conventional loan. Where I differ is in permissibility. Riba was really like loan sharking and predatory lending burdening the poor. Interest (conventional or disguised Islamic as discussed here) is not Riba.
Actually the problem (to my knowledge could be wrong though) with most Islamic mortgages isn’t really the rent issue it’s more so that the bank usually forces the buyer to buy their share of the property. BTW can please mention any sharia compliant reit.
quick question: I want to know in the salam contract it says to take payment in full. Is it fine in dropshipping if the customer has paid me in full and the money is in my shopify store meaning the money is mine however I pay the manufacturer with my money. The reason I ask this is because it takes 3 business days for funds to be processed from shopify to my bank card which can ruin fast shipping times. Bear in mind the money in shopify is guaranteed mine and is already in the process of being sent to me however is taking a few days due to processing. Please do answer this as soon as possible.
My question is why do mosques, Islamic institutions and other community initiatives take out riba based loans and everyone just nods there head as if it’s the only to move Muslim community forward. Then when the individual does it becomes 100% haram. Why the double standard? What’s the alternative?
"Islamic mortgages" are a trojan horse. Loans Islamicaly are simply a form of charity. Any talk of "investor" should be an immediate red flag. In my opinion the root cause of this is a lenders reluctance to give money for a lengthy amount of time with no benefit. Any loan that derives a benefit is riba, hence the whole word smithery around "interest" and disguising it as something else. I have an alternative I worked on awhile back, you need to cut out any incentive for personal gain by eliminating the "lenders "or "banks". Loans are a charity and they need a not-for-profilt charitable organisation to issue them not a bank. Now its obviously impossible to compete with banks that can print money out of thin air, the only counter is to rally support from the public collecting money via monthly donations into a pool that can be used for lending by the charity. Since this money doesn't belong to any "lender" or "bank" it eliminates the incentive for profit. You can then form a loan agreement on a mushaaraka basis where the charity has diminishing equity in the property without all the disguised riba "rental" nonsense. Just a fixed repayment of the remaining equity spread over 25 years or better yet 50 to 100 years. Why not? There's no rush to pay a lender back because there isn't one besides the charity which isn't looking to profit. It could greatly help with the cost of living and incentivises starting a family for inheritance. Considering the size of the Ummah I know its viable, I did the numbers a while back on the averages that muslims give in charity in the UK, you could in theory pool tens of millions of pounds on a monthly basis if we all simply give £5 to £10 monthly. Interestingly though when the loan agreements are made the repayments make their way back into the pool. It would be an ongoing charity that could just keep growing. Those of you from a urdu speaking background might of heard of "qamayti" it's sort of something similar where the community gather funds in a pool for whatever needs, house deposits, funerals, weddings etc. Utilising the power of the ummah in a interconnected world is greatly lacking. With the help of AI it could be interesting to build a model around this but I simply don't have time or resources to develop this further. Thought I'd share my idea though, perhaps someone is working on a solution and could take some ideas from it.
And lastly the issue of who gets given homes first. When there's a small group of people they can decide the order of who gets money etc but when it's out of a few million.....not likely to work so smoothly
Is rent of an apartment haram is we know that the owner has a mortgage ? Essentially, we are paying their interest on their mortgage, further contributing to this system
It’s completely halal to buy an inflated product in case of mubaraha transaction no? Cant a buyer and seller decide and agree to what the price of any asset is between their transaction? So if the lack of capital is an issue on the buyers end, another entity buys it with their capital and wants to sell it over time to the buyer.
as you said shaytan is in the detail. i believe musharaka is potentially halal depending on how the contract is written. 1) murabah is clearly not. 2) ijara usually is not, as the contract is written in a haram way imo. 3) musharaka is potentially halal, but never been tested. the reason why i think the last one is potentially halal depending on the contract details is that so long as the banks are taking on the risk thst occurs when the buyer decides to no longer pay rent and decides to sell or dies for instance or negative equity occurs. It becomes halal. At that point how the house would be sold and the value profit or loss of the property split determines the halal or haram nature of the musharaka contract. On paper they are halal as on paper the bank takes the loss on equally to their ownership share. In reality it has never been tested, as no one i know of has defaulted on an Islamic mortgage on a property with negative equity. and the paperwork is always grey. which is unacceptable. I would have also said ijarah is halal, but having just googled it, it seems the nature of how the ownership is transferred at the end of the contract makes it basically a murabah contract and haram as the entire value of the contract is based on the promise that the ownership would be transferred at the end. And the lease is overvalued and not at market rate.
Dyou know what, I feel like in the uk and prob most of the rest of the world it's actually so hard to get a deposit together to be able to afford to buy a house in a halal way. I feel like I'd rather put money towards masjids and gain that house in jannah insha'Allah.
So if im understanding you ok should they do it for free would you go buy a house then sell it to me for 0 profit? And take the risk that im not gonna pay you? So everything is riba then someone buy bread then sell it for bigger price is also riba?
No the bread example is a case of supply chain. You can’t get finance to buy bread. Look into pfida and how their product works. Effectively they are a landlord and enter into a partnership with you. You can buy back equity at your own pace with no obligation to buy at all and can pay rent only. There’s no debt involved.
A faulty explanation, first use respectful descriptions, “banana land”. Second, you cannot cut a phrase from musharaka-based mortgages, you cannot cut musharaka that means partnership and start assessing the first type the speaker talks about under the false title of mortgage. If you are partners, it means you have no 100% ownership, you have a percentage which was mentioned as 20%, and you buy out your partners shares little by little. Also, you are partners in an asset that has a function to be used as a place of residence, so if you are using it, you should pay, now you pay less than 100% that is 80% because it is not yours, it belongs to your partner, and so on as you pay him out your rent payment decreases because the partner owns less and less of the 80%. I will continue on as I continue watching.
This is a total scam, if we're partners we should share/split appreciation/depreciation of the value, if not then someone's fooling the other. 97% of their money supply is created by interest banks!!! what the heck, is this guy a lunatic or what.
Loan is the same as investments 😂. They can do whatever they want but please stop calling it an “Islamic” mortgage . I quite like banana land bank😂. On a serious note by calling it Islamic they are killing real innovation- Pfida in UK are doing authentic work - there is no debt - regulator doesn’t view them as a debt provider only a real estate investor.
No. Don't agree with your thoughts on major bits. Please read the fiqh. Unfortunately, people like you think it's going to a completely new structure. That's not possible. In the most simplistic term. The only difference between halal and haram chicken is slaughtering. So it's the design. Yes, there are elements which aren't perfect. I agree but at least it's a setup towards something ideal.
My friend you become the owner of the portion what you have put as a deposit and gradually you keep buying the share...the more you buy the less the rent you pay...If the scholars have confirmed what is Islamic and what is unIslamic, you should accept...the same way you go to doctor n whatever he prescribes you take it....the scholars have spent 16-18 years gaining Islamic knowledge..the point is dont step on someone else shoes
I dont agree abt the UK person needing to learn english from the Americans…. How does that relate or affect how permissible the option is? What makes you feel American english is more superior than UK english? To say such a statement that’s not a right approach & its kinda showing arrogance ? just noticing.
Please do provide an alternative structure… if truly the other option of something islamic is not exactly what it is, we should have the right to know. May Allah make it easy for us who are really stunted with almost no alternative
@@practicalislamicfinancenoo not IFG, they do really good work! Have a discussion with Ibrahim or Mohsin please. Talk it out publicly or privately then we’ll arrive at the truth!
@@deFreijtas can this not suffice as a public dialog? Why the anguish? Isn't arriving at the truth and staying as far away as possible from riba important?
@@TheCookieOverload Because having a direct dialogue is more dynamic. In communication misunderstanding and misinterpretation are very common. (I am not saying that both parties are misunderstood it’s just a general statement) Face to face you can dynamically correct or adjust the other parties assumption thus getting the right message across is more effective. I think it’s a key part for having fruitful discussions, especially surrounding topics with high disagreement and of a complex nature.
![[LIVE] : ONE ลุมพินี 91 | คู่เอก "คมอาวุธ vs อเล็กเซย์"](http://i.ytimg.com/vi/V0RkEfYFsgM/mqdefault.jpg)
Yes please a good alternative would be appreciated.
insha' Allah
@@practicalislamicfinance so how to buy a house fully in halal way? :( I dont wanna rent for the rest of my life
I haven’t seen the video yet, but this type of integrity is why I love your channel.
I really appreciate your trust
@@practicalislamicfinanceafter watching: Absolutely hilarious and Spot on.
Keep up the good work bro.
Saving people’s Akhira.
@@practicalislamicfinance what is the solution? If not we won't have options to buy homes. How will islamic finance companies make money via trade/business to continue the business
Your explanation makes sense to anyone that wants to understand.
glad it came out clearly
Please propose a structure that is halal and point out the theoritical aspects from the practical, jazakallah khair brother
Inshallah
Exactly what I was thinking as well. It's okay to oppose an argument, it's much better to suggest alternatives.
Hard to do but I think putting basically all your wealth into it and perhaps borrowing from relatives and family members are the only options. At least if there’s more to be paid then they can be paid sooner
Thanks
the only thing i will disagree with here is unpick is correct, unpick = to undo or take apart something that has been picked or sewn together. AND unpack = To remove the contents of a container, or to analyze or explain something in detail. so ill say Unpick is the correct word to use in this context
I absolutely commend your straight forward and digestible explanations. I can’t help but feel sad for the lot of Muslims that this info doesn’t reach.
glad it was useful. share so others see it.
Very calmly and logically explained. This is how refutations should be - not shaming and mocking, but focus on calm, polite and logical exposition so the listener can judge for themselves.
However, I definitely (and respectfully) do not agree with his point that Brits should be learning English from Americans! 😅
brother please review more of their videos, because i have a feeling they are leading people astray with a lot of their videos. Jazak Allah
Great explanation. You have integrity which is highly appreciated jazakallahu khairan
lol, I saw that video just a couple of days ago, I was scratching my head with these questions.
Please do propose a halal structure!
Really interesting topic and easy to follow what has been a murky world for those of us not versed in islamic fiance. Please can you review pfida mortgage available in the UK
Great video, thanks for the spitting the knowledge
Thank you, if you have a better structure please share it in your next video
The extra amount is how lenders make money. It isn’t really hidden like an interest rate is.
It’s a better financial decision to take a conventional loan if you know you’re getting an inheritance to pay it off, but it’s the honesty that matters.
Very sad that Islamic finance seems to be more predatory in some aspects compared to its riba based counterparts
We will change it insha Allah
i mean they are both riba based, one is in your face, the other is disguised with rant, but at the end of the day they both want to profit from the buyer's need of money
It's almost like ppl who want to own a home should save the money and buy one while accepting the possibility that they may never have enough money to do so (it won't make a difference if you owned a home or not on the last day). And, ppl with more money than they know what to do with should lend ppl money and only intend to receive back what they let the ppl borrow while keeping in mind the virtue of forgiving debts.
i think there is a commercial way to do it... it doesn't have to be charity
@@practicalislamicfinance
Salam aleikum brother,
Could you explain more about this commercial way?
Already alot of people have asked you about a follow up in the comments.
Jazakallah Khairan
Excellent informative video
Yes, alternative, please.
Jazzak Allah Khair brother
Thank you for the well explained perspective, halal alternative please!
Great video, would appreciate hadiths backing up what is halal/haram rather than logically 'unpicking' the current islamic mortgages on sale, even though I do agree with what was said, hadiths would solidify your arguement more.
There are no hadiths discussing musharaka or murabaha. There is no agreement on what exactly riba was. Was it interest (conventional view) or arbitrary exploitation of debtors (modernist view) - redoubling of unpaid debt?
Have you studied Islamic Finance with a scholar of Islam?
formally, no. through books, yes.
Your content is very important, and more power to you. But Fiqh is firstly taken from scholars, books are tools. Our deen is based on isnad. You're basically doing ijtihad and don't have ijaza in the field, but you should obtain it.
@@n.a.1397LOL don't need a scholar to tell you what is CLEARLY wrong. Now if he makes his own idea and says its islamic that's a different matter. Scholars have already refuted these so called Islamic banks anyway if you don't like to use your own brain at all
Spot on. This video is "unpacking* the arguments, in a derogatory tone mostly, probably to sound a bit funny, but without a deeper understanding of the topic.
While the arguments are generally OKish mostly, but they can always be countered as well.
It would help that before posting a video like this, you had taken the time to engage with an islamic finance scholar. It is a disservice to yourself and the audience that you take up such an important topic without due qualification.
@skhan_28 The same argument can be made on IFG's take.
And to be perfectly honest there are very few (if any) people out there that understand both finance and Islam to a level needed in these situations.
So in any case, why take a risk when it's not guaranteed that Islamic mortgages are acceptable, particularly when we know the consequences are severe.
Asalaamu'alaikum...Masha'Allah great video.... would it be better do get a conventional mortgage or better yet, just keep on renting to stay clear of riba and what is a grey area... leave which you are unsure of
Yes, Propose a structure please! And if the structure is hypocritical then discuss alternatives to current options
Generally speaking 2 options:
1) Diminishing Musharaka
2) Murabaha
1) Financier/bank/investor and customer jointly purchase a property. Customer who stays in the property pays rent on the portion they don't own and has an option to buy equity back from the financier.
2) House sold at cost plus a mark up
@aek8541 He explained any both options are incorrect in the video
The issue with the Islamic mortgage is they take far too much rent e.g. I’m paying £900 in rent and my capital payments are £500 per month. This isn’t fair. They make more. They increase rent payments based on interest rate increases.
Which company you with ?
Great explanation
Yes, please, offer alternative Islamic home finance solution.
Great video 👍🏽
What does "Sharing in the Outcome" in a true partnership actually mean? Does it imply a 50/50 distribution of profits, losses, and risks, or can partners agree on a different split, such as 60/40? Is there any evidence (Daleel) suggesting that a partnership must have an equal division of outcomes?
What are your thoughts on the opinion that two-in-one agreements are Haram? What are the evidences (Daleel) supporting this view?
جزاك اللهُ خيرًا
Is there any alternative we have? What about those different options like wayhome ???
Please post a video with sharia compliant alternative and also cover whether such products exist or are likely to be available in the near future. Jazakallah
Guidance does share in outcome
asalam aleykum you have explained well what they are doing wrong jazaka Laah. Can kindly do a vedio on what exactly needs to be the correct halal way to deal with this issue of morgage/islamic
Walaykum Salam , alhamdulillah it was useful, insha Allah I plan on it
@@practicalislamicfinance shukran wajazakalaah kheyr, many Muslims are really suffering with this issue
@@practicalislamicfinance look into pfida’s product and review that please
How can we buy a property in uk then ? Rent prices are going crazy, we’ve paid more than 100k in rent 😢
rent is crazy indeed. 100k rent is banana land.
Same in Australia mate rent is insane but my house in jannah ain't worth risking
As salaamu alaikum, I’ve just come across this video. I think the company Pfida genuinely fixes these problems of the Islamic mortgages and they are the only one in that model where you are under no obligation to buy so there is no debt. If you have the time please do check it out in sha allaah
Baraka Allahu Feekum. What structure is actually halal? From what I understand, there is one company in California doing it the rich way.
wayyakum. insha' Allah will share my thoughts.
Valid points! Is it fair to say that islamic mortgage providers are taking less risk (vs the borrower/client) and making more money as compared to traditional banks?
undoubtedly yes in my opinion. Listen to what he says from 7:40 to 9:01
Islamic bank is basically guaranteed the full interest/“profit” amount. With conventional bank, it would depend how early you pay off the loan, The earlier it’s paid off the less interest.
Is Manuka honey better than normal honey?
i think with musharakah theres a stipulation aswell where if the person defaults on the loan their amount is returned vs a conventional loan where their loan is not returned and the house is foreclosed on i might be wrong but this is something I've heard
Works the same as a normal loan. Islamic bank will stipulate their portion needs to be paid back just like the interest based bank
Can someone explain how renting is technically permissible? If you think about it, you end up paying the same if not more over say 30 years than if you were to take a conventional loan and buy a home at the same value (especially with these inflated rent prices). You borrow the apartment/property without ever actually owning it at the end and if the place isn't already paid off, you potentially use it to pay off the mortgage indirectly. Is it halal because you don't ever get to own the property and the landlord decides how they want to finance the place?
You are right. The financiers are just using a bunch of arabic / islamic terms to legitimise the produc... it's defacto interest based.
As was mentioned in the video, the ones who heavily promote Islamic finance are the ones who benefit from it.
I have always agreed with Rakan....but not this time. He is not considering the sharing of risk aspect that is key to an Islamic mortgage. In interest-banking, in case of default, aperson ends up losing not just what he used the money for, but also whatever asset he had prior to the loan, until he pays off the loan. Whereas in Islamic mortgage, the loss is shared! That is a BIG DIFFERENCE! Not only that, if a person is unable to pay off the property share, the property is put on sale, and the borrower will still get back a proportion of what he paid to the Islamic bank for his share. So you dont lose the entirety of your investment.
Assalaamu Alaikum!
Please give us an alternative that is halal. We do need it since many years ago.
Salam. grateful for the video. but what about the solutions? and please share what YOU personally use as well.
Thank you for your amazing research and information spreading, your videos has been very much helpful to me and im pretty sure to many others. However, was just wondering if you can give details about leverged currencies to trade on spot market, example btcup/btcdown/bnbup...etc
Great to hear! Avoid financially-leveraged anything.
Please propose a structure that is halal
I agree with his view of Islamic mortgages and financing. I suspected than the things he says were true - that there is no sharing of the outcome - there is no sharing of maintenance and expenses, and that 'rent' on the bank's share of the house is just based on interest rates, and that the payment schedule is based on a fixed markup price than does not change if the market price of the house changes. So I am gratified to have him confirm these things. It makes common sense that since you are using the bank's money to finance your house purchase you have to compensate the bank just as in a conventional loan.
Where I differ is in permissibility. Riba was really like loan sharking and predatory lending burdening the poor. Interest (conventional or disguised Islamic as discussed here) is not Riba.
As always, great video from PIF. Easy and simple to understand. Jazak Allah Kairan.
wayyakum Rachad, thank you for your continued support
The offer i had on the house was accepted. All i have is a sharia mortgage. What alternative can i do?
Actually the problem (to my knowledge could be wrong though) with most Islamic mortgages isn’t really the rent issue it’s more so that the bank usually forces the buyer to buy their share of the property. BTW can please mention any sharia compliant reit.
quick question: I want to know in the salam contract it says to take payment in full. Is it fine in dropshipping if the customer has paid me in full and the money is in my shopify store meaning the money is mine however I pay the manufacturer with my money. The reason I ask this is because it takes 3 business days for funds to be processed from shopify to my bank card which can ruin fast shipping times. Bear in mind the money in shopify is guaranteed mine and is already in the process of being sent to me however is taking a few days due to processing. Please do answer this as soon as possible.
My question is why do mosques, Islamic institutions and other community initiatives take out riba based loans and everyone just nods there head as if it’s the only to move Muslim community forward. Then when the individual does it becomes 100% haram. Why the double standard? What’s the alternative?
Asalamualykum warahmatullaah wabarakatu.
Allah reward you and increase your rizq.
Do you know of any companies that offer halal type of Ijaara
Can you comment on alternatives? If all the so called Islamic mortgages are haram, what options do Muslims have for home ownership?
I will insha' Allah. This is important
I second this
@@practicalislamicfinanceplease help on this ASAP!!!!
@@practicalislamicfinance have you already released a video regarding halal alternatives to home ownership?
Salam, did you ever end up proposing a better alternative video?
"Islamic mortgages" are a trojan horse. Loans Islamicaly are simply a form of charity. Any talk of "investor" should be an immediate red flag. In my opinion the root cause of this is a lenders reluctance to give money for a lengthy amount of time with no benefit. Any loan that derives a benefit is riba, hence the whole word smithery around "interest" and disguising it as something else.
I have an alternative I worked on awhile back, you need to cut out any incentive for personal gain by eliminating the "lenders "or "banks". Loans are a charity and they need a not-for-profilt charitable organisation to issue them not a bank. Now its obviously impossible to compete with banks that can print money out of thin air, the only counter is to rally support from the public collecting money via monthly donations into a pool that can be used for lending by the charity. Since this money doesn't belong to any "lender" or "bank" it eliminates the incentive for profit. You can then form a loan agreement on a mushaaraka basis where the charity has diminishing equity in the property without all the disguised riba "rental" nonsense. Just a fixed repayment of the remaining equity spread over 25 years or better yet 50 to 100 years. Why not? There's no rush to pay a lender back because there isn't one besides the charity which isn't looking to profit. It could greatly help with the cost of living and incentivises starting a family for inheritance.
Considering the size of the Ummah I know its viable, I did the numbers a while back on the averages that muslims give in charity in the UK, you could in theory pool tens of millions of pounds on a monthly basis if we all simply give £5 to £10 monthly. Interestingly though when the loan agreements are made the repayments make their way back into the pool. It would be an ongoing charity that could just keep growing. Those of you from a urdu speaking background might of heard of "qamayti" it's sort of something similar where the community gather funds in a pool for whatever needs, house deposits, funerals, weddings etc. Utilising the power of the ummah in a interconnected world is greatly lacking.
With the help of AI it could be interesting to build a model around this but I simply don't have time or resources to develop this further. Thought I'd share my idea though, perhaps someone is working on a solution and could take some ideas from it.
That's a solution. The only issue is who would be the ones in charge implementing it. Possibility for corruption and stealing of funds etc.
Maybe smart contracts via block chain but again will still have people able to control aspects and thus corruption.
And lastly the issue of who gets given homes first. When there's a small group of people they can decide the order of who gets money etc but when it's out of a few million.....not likely to work so smoothly
If Islamic Mortgage is not fair or allowed, then how should people do mortgage? the conventional or what type? I hope you answer that.
none just keep renting or you would go to hellfire
Is kucoin future trading halal or haram?
Is rent of an apartment haram is we know that the owner has a mortgage ? Essentially, we are paying their interest on their mortgage, further contributing to this system
So what you suggesting is traditional mortgage is better than so called Islamic mortgages?
It’s completely halal to buy an inflated product in case of mubaraha transaction no? Cant a buyer and seller decide and agree to what the price of any asset is between their transaction? So if the lack of capital is an issue on the buyers end, another entity buys it with their capital and wants to sell it over time to the buyer.
Watch my video on murabaha
as you said shaytan is in the detail.
i believe musharaka is potentially halal depending on how the contract is written.
1) murabah is clearly not.
2) ijara usually is not, as the contract is written in a haram way imo.
3) musharaka is potentially halal, but never been tested.
the reason why i think the last one is potentially halal depending on the contract details is that so long as the banks are taking on the risk thst occurs when the buyer decides to no longer pay rent and decides to sell or dies for instance or negative equity occurs. It becomes halal.
At that point how the house would be sold and the value profit or loss of the property split determines the halal or haram nature of the musharaka contract.
On paper they are halal as on paper the bank takes the loss on equally to their ownership share.
In reality it has never been tested, as no one i know of has defaulted on an Islamic mortgage on a property with negative equity.
and the paperwork is always grey. which is unacceptable.
I would have also said ijarah is halal, but having just googled it, it seems the nature of how the ownership is transferred at the end of the contract makes it basically a murabah contract and haram as the entire value of the contract is based on the promise that the ownership would be transferred at the end. And the lease is overvalued and not at market rate.
Dyou know what, I feel like in the uk and prob most of the rest of the world it's actually so hard to get a deposit together to be able to afford to buy a house in a halal way. I feel like I'd rather put money towards masjids and gain that house in jannah insha'Allah.
So if im understanding you ok should they do it for free would you go buy a house then sell it to me for 0 profit? And take the risk that im not gonna pay you? So everything is riba then someone buy bread then sell it for bigger price is also riba?
No the bread example is a case of supply chain. You can’t get finance to buy bread.
Look into pfida and how their product works. Effectively they are a landlord and enter into a partnership with you. You can buy back equity at your own pace with no obligation to buy at all and can pay rent only. There’s no debt involved.
You only taking about problems not the saying about solutions.
You save your money if Allah allows you buy it with cash. Brother why would you risk your achira.
A faulty explanation, first use respectful descriptions, “banana land”.
Second, you cannot cut a phrase from musharaka-based mortgages, you cannot cut musharaka that means partnership and start assessing the first type the speaker talks about under the false title of mortgage. If you are partners, it means you have no 100% ownership, you have a percentage which was mentioned as 20%, and you buy out your partners shares little by little. Also, you are partners in an asset that has a function to be used as a place of residence, so if you are using it, you should pay, now you pay less than 100% that is 80% because it is not yours, it belongs to your partner, and so on as you pay him out your rent payment decreases because the partner owns less and less of the 80%.
I will continue on as I continue watching.
Would love to know your suggestions
insha' Allah
That juice beer example is a very lame example 😂
Most Islamic Mortgages take normal Mortgages and increase prices.
practically speaking, yes
Ijarah-based mortgage was the only one you did not oppose. Would you mind reviewing Pfida (formerly Primary Finance)?
I’ve heard this name twice now … it’s getting more likely :)
Its disgusting that Shariah compliant mortgages are taking advantage of there own community.
This is a total scam, if we're partners we should share/split appreciation/depreciation of the value, if not then someone's fooling the other.
97% of their money supply is created by interest banks!!! what the heck, is this guy a lunatic or what.
Why you making this so hard.
as long as bank buy property and its owner first then sell its to you buyer. its correct contract.
Loan is the same as investments 😂. They can do whatever they want but please stop calling it an “Islamic” mortgage . I quite like banana land bank😂. On a serious note by calling it Islamic they are killing real innovation- Pfida in UK are doing authentic work - there is no debt - regulator doesn’t view them as a debt provider only a real estate investor.
sounds interesting, will be looking out for this.
No. Don't agree with your thoughts on major bits. Please read the fiqh. Unfortunately, people like you think it's going to a completely new structure. That's not possible. In the most simplistic term. The only difference between halal and haram chicken is slaughtering. So it's the design. Yes, there are elements which aren't perfect. I agree but at least it's a setup towards something ideal.
He does this cause he apparently is an founder of an "islamic" bank,what a shameless man
My friend you become the owner of the portion what you have put as a deposit and gradually you keep buying the share...the more you buy the less the rent you pay...If the scholars have confirmed what is Islamic and what is unIslamic, you should accept...the same way you go to doctor n whatever he prescribes you take it....the scholars have spent 16-18 years gaining Islamic knowledge..the point is dont step on someone else shoes
I dont agree abt the UK person needing to learn english from the Americans…. How does that relate or affect how permissible the option is? What makes you feel American english is more superior than UK english? To say such a statement that’s not a right approach & its kinda showing arrogance ? just noticing.
Please do provide an alternative structure… if truly the other option of something islamic is not exactly what it is, we should have the right to know. May Allah make it easy for us who are really stunted with almost no alternative
Why are you starting an argument in the Islamic financial world? There's enough of that going on as it is in the Ummah...
the point is not to argue, the point is to arrive at the truth which I think is important.
@@practicalislamicfinancenoo not IFG, they do really good work! Have a discussion with Ibrahim or Mohsin please. Talk it out publicly or privately then we’ll arrive at the truth!
@@deFreijtas great, I hope they do even more good work. I did reach out prior to making the video but got no response.
@@deFreijtas can this not suffice as a public dialog? Why the anguish? Isn't arriving at the truth and staying as far away as possible from riba important?
@@TheCookieOverload Because having a direct dialogue is more dynamic. In communication misunderstanding and misinterpretation are very common. (I am not saying that both parties are misunderstood it’s just a general statement)
Face to face you can dynamically correct or adjust the other parties assumption thus getting the right message across is more effective. I think it’s a key part for having fruitful discussions, especially surrounding topics with high disagreement and of a complex nature.
I am not sure about this but i don't think i wana live in banana land, sounds tasty though
you'll never need potassium again
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