Oiler Posted October 22, 2013 How do you feel about getting a mortgage in order to buy a house? Do you already own a mortgage? if so, what's your interest rate like? Quote Share this post Link to post Share on other sites
Caano_Geel Posted October 22, 2013 Interesting is HARAAAAAAAAAAAAM. Riba = interest Stay away oo ha isugu dhawaan. Haddaad se ka maarmi waydo take halal mortgages without interests. Quote Share this post Link to post Share on other sites
Nin-Yaaban Posted October 22, 2013 Oiler;982611 wrote: How do you feel about getting a mortgage in order to buy a house? Do you already own a mortgage? if so, what's your interest rate like? I don't own property, but know few people who do. Mortgage is the only way you can buy a house now a days, unless you have $200k sitting around. So many people bought homes, and when the housing market collapsed, they owed more than their house was worth it. They just walked out of it and let it go into foreclosure. Just be very careful, since it's 20+ yrs of investment. Quote Share this post Link to post Share on other sites
SomaliPhilosopher Posted October 22, 2013 Somalida waa reer guuraah. Getting a mortgage is the least somali think you can do sxb! Quote Share this post Link to post Share on other sites
Guzel Posted October 22, 2013 I do. Interest rate is low at the moment, less than 4%, 25 years term but I intend to pay it within 10 years. Without mortgage, I cannot get on the property ladder, no other options unfortunately. I am not going to spend my money renting and paying off someone else's mortgage. Quote Share this post Link to post Share on other sites
guleed_ali Posted October 22, 2013 Guzel;982674 wrote: I do. Interest rate is low at the moment, less than 4%, 25 years term but I intend to pay it within 10 years. Without mortgage, I cannot get on the property ladder, no other options unfortunately. I am not going to spend my money renting and paying off someone else's mortgage. Do you believe you are sinning or do you know that getting a mortgage is haram but you've given into temptation? I'm just curious, I apologize if the question is too personal... Quote Share this post Link to post Share on other sites
Guzel Posted October 23, 2013 guleed_ali;982680 wrote: Do you believe you are sinning or do you know that getting a mortgage is haram but you've given into temptation? I'm just curious, I apologize if the question is too personal... Yes i am sinning, i don't like having a mortgage so there was no temptation there. I just made a sound financial decision with my limited option of either renting or getting a mortgage. Quote Share this post Link to post Share on other sites
underdog Posted October 23, 2013 Guzel;982745 wrote: Yes i am sinning, i don't like having a mortgage so there was no temptation there. I just made a sound financial decision with my limited option of either renting or getting a mortgage. What stopped you from considering an Halal mortgage option? There are a multitude of choices is any country. http://www.ijaraloans.com/index.php Quote Share this post Link to post Share on other sites
guleed_ali Posted October 23, 2013 Guzel in shaa Alah you get through these tough times quickly and you pay off your mortgage and repent to Allah, may Allah make it easy for you (Allahuma ameen). Underdog that topic requires a new thread, not all so called "halal" mortgages are shar'iah compliant. This led a lot of people to just give up and get a conventional loan. Some of the better options require a larger down payment and may take a couple of years until you're able to get your desired home. Quote Share this post Link to post Share on other sites
Guzel Posted October 23, 2013 underdog;982754 wrote: What stopped you from considering an Halal mortgage option? There are a multitude of choices is any country. http://www.ijaraloans.com/index.php Not in the UK, halal mortgages has dwindled in recent years, HSBC no longer offering their amanah finance here. There is not much choice either in that they stipulate getting residential mortgage and i want to let out the property so that i can repay the mortgage quicker. Quote Share this post Link to post Share on other sites
Khadafi Posted October 23, 2013 SomaliPhilosopher;982670 wrote: Somalida waa reer guuraah. Getting a mortgage is the least somali think you can do sxb! +!... I have to agree with you somali ph. It seems that it's "un-somali" to be stuck with a house on a certain place for a considerable time. I remember during the late 90-ties when thousands of Somalis from Scandinavia were moving to the UK. A couple of years ago I saw the same family during an event. I guess they moved back to Sweden. That's how we Somalis are, if some hears the rumors that the others side of the river has gold, soon hordes of his family will be heading to that side. Positive things with this form a "euro-nomadism" might be that we would have a lot of more experience and be adaptable to new environments but I do believe that the negative outweighs more then the positive, moving your family and kids to different locations and culture will probably make them feel not belonging somewhere. To the thread starter: Regarding buying a house, I have thought about it, if my family would have bought a house in 1991 we would not need to pay rent now but I guess my parents back then were refugees who did not think that we would be here for 20 years. But unlike my parents I I or my generation grew up here and are well into the 30-ties now. Somalia seems distant and why pay rent if I am probably going to be here in Europe for another 20 years? Paying money for rent for 20 years is a lot of money, and not being able to sell the house your renting means that the house is not yours. You are in another words simply throwing away your hard earned money. Another observation that I have made is that the greatest socio-economical difference between mainly immigrant youths & native swedes is that the native swedes have great capital by buying a house and then when they are old giving it to their off-spring. A close Swedish friend currently lives in a big villa that he inherited from his family. He does not need to pay a dime in rent. The only thing that is currently holding me back from buying a house is my faith in God. I believe that taking interest or paying interest is forbidden but do not blame others if they do it. Hey its a free world! , everyone reaps what he sows. I have heard of Islamic banks but here in Scandinavia they are not so well established and are not an option but who knows.They might be a reality soon and if so I will be the first to buy a house. Ps: I am not so educated in how Islamic banks work but could someone explain how they finance themselves if they do not take interest? Quote Share this post Link to post Share on other sites
Blessed Posted October 24, 2013 ^You raise a good point re - leaving assets for your children, that' very important for me personally. I do think that you don't neccessarily have to stay put if you buy property, one can move around for better work/ lifestyle opportunities but still invest in property. As for Islamic finance.. There are two main approaches, 1- the bank will buy your property of choice but it will belong to the bank initially, you pay instalments which includes rent (as the bank is your landlord) and payment towards the house , the banks ownership of the property decreases over time until you owe the property out right, it's like those 'rent to buy' schemes. The second approach is based on the basic trade principle, the bank buys the property and sells it you at a higher price which you repay over an agreed period of time. Profits and losses on the property are shared equally. - You can read more about Islamic finance here... http://www.islamic-bank.com/ Quote Share this post Link to post Share on other sites
Rahima Posted October 24, 2013 ^ The problem with Islamic banking these days is that whilst in principle they appear to be halal, when you get down to the nitty gritty detail you find that there really isn’t much difference between them and the interest based banks. With the two options you described, option 2 is only halal if the bank owned the property before you even approached them and option 1 is often fudged by these banks when it comes to the calculations where you realise that they just replace interest with rent. In saying that though- I too believe that wanting to move away does not mean that we shouldn’t invest in property if you can find a halal way. The way I see it is, even if I move (which I plan to inshallah), I can always rent out my house. Quote Share this post Link to post Share on other sites
RaMpAgE Posted October 24, 2013 Whiles I am not the most religious or Knowledgeable person, theirs one thing i would never consider and that's Riba, especially in regards to the way its described in the Quran: 275. Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: "Trading is only like Ribâ (usury)," whereas Allâh has permitted trading and forbidden Ribâ (usury). So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire - they will abide therein. 276. Allâh will destroy Ribâ (usury) and will give increase for Sadaqât (deeds of charity, alms, etc.) And Allâh likes not the disbelievers, sinners. 277. Truly those who believe, and do deeds of righteousness, and perform As-Salât (Iqâmat-as-Salât), and give Zakât, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve. 278. O you who believe! Be afraid of Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers. 279. And if you do not do it, then take a notice of war from Allâh and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums). 280. And if the debtor is in a hard time (has no money), then grant him time till it is easy for him to repay, but if you remit it by way of charity, that is better for you if you did but know. 281. And be afraid of the Day when you shall be brought back to Allâh. Then every person shall be paid what he earned, and they shall not be dealt with unjustly. Quote Share this post Link to post Share on other sites
