Fatwa: # 17125
Category: Financial Transactions
Country: South Africa
Date: 12th September 2008

Title

If I bought a flat as an investment with the hope that I could sell it some time in the future

Question

If I bought a flat as an investment with the hope that I could sell it some time in the future and use it to fund my children’s university studies or even their marriage do I have to include the value of the flat in my zakah calculaton? If so do I include the cost I bought it for or the current market value? If you could assist I would appreciate

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

Zakāt will only be obligatory upon the flat if the purpose of your purchase was to re-sell the flat.

Zakāt will be obligatory upon the current value of the flat.

And Allah knows best

Wassalam

Ml. Ehzaz Ajmeri,
Student Darul Iftaa

Concurred by:

Ml. Yusuf bin Yaqub,
Student Darul Iftaa

Darul Iftaa

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]