Category: Business Matters
Fatwa#: 40924
Asked Country: United States

Answered Date: Sep 26,2018

Title: Buying an investment property (for renting) using Islamic financing

Question

Aoa. Is it permissible to buy an investment property (for renting) using islamic/shariah financing ? (assuming that the bank is sharia compliant). I was once told my a local Imam that I should avoid islamic financing (when i was purchasing my own home) if I can (e.g., buy a smaller/cheaper home w/o loan, instead of trying to buy a nicer home with islamic financing)

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

If the Islamic/Shariah financing is Shariah compliant, it will be permissible to buy an investment property through that.

However, one should be alert that there are many banks/Islamic investment schemes incorrectly claiming to be Shariah compliant.

 

And Allah Ta’āla Knows Best

Mirza Mahmood Baig

Student Darul Iftaa

Jeddah, KSA

Checked and Approved by,
Mufti Ebrahim Desai.

 

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