Another fantastic podcast Areeb, may Allah reward you brothers for bringing this to the fore and increase your rizq and barakah in this pursuits. Super important and insightful conversation!
The WHOLE time I was thinking hope the brother does not get diverted from his initial INTENTION of preventing RIBA and getting misled by finance but Alhamdulillāh he hasn’t. That’s why it’s important to CONSTANTLY RENEWING our intentions that it’s all for Allāh’s sake. Along the journey one can easily get diverted by doubts and desires but we must always go back to renewing our intentions. May Allāh grant him and us all sincerity. RIBA is no joke, it’s a system that destroys society.
This conversation had many highlights. But this part hit home: "And Allah forgive me, I remember at that point saying, 'No Mom, you don't understand. You're wrong. It's not just about making dua, it just can't be done.' And SubhanAllah, I kid you not, the very next day... it’s like I could see Allah's hand just removing this boulder from the way like it never existed." Masha' Allah. I finished this episode feeling especially inspired.
If Pfida are going to be charging tenants/partners the current ludicrous rental rates then they will be making huge profit, more than banks supplying conventional Islamic or Haram mortgages. It's a good business model but costly for tenants unless they can quickly pay off the house...but may pay even more if the value of the house doubles over time... 🧐🤔
The biggest issue I have found in uk Islamic mortgage is that you are forced to by buy the percentage although some may allow just to rent the property this is only for a period of time and your are eventually going to have to buy the house.
I am with gatehouse and my brother is with primary finance so I can compare the two products. The primary finance model is great and the only big difference I found that if you can’t pay the mortgage due to financial difficulties then you can just pay the rent. If you use their calculator then there is not much difference in monthly payments. The waiting list is very long unless you invest 50k plus. Just remember, if you buying the first house then the stamp duty is very high. You will pay the stamp duty of second house. All Islamic home products including PF don’t share the burden. You will have to pay for the home insurance, house maintenance and etc.
Salaam, that is valuable insight to be able to compare the two products within your family Allahuma baarik. I’ve heard somewhere the stamp duty must be paid twice or something with PF, could you confirm if that is the case? Also how do they calculate the target rent per month? And how long did your brother have to wait? Jazakallahu Khairan for the insight once again
@@mektrodeWalaikum Asslam, Yes, you pay the stamp duty of second house. My brother hated it. My brother invested over 50k, I don’t know the exact amount but he only had to wait 6-8 months. The more you invest the quicker you will get the house. Also, bear in mind the purchasing new build is not allowed. They are bit picky with the house choice.If the house survey report is not that good then you will be asked to look for another house. If you email brother Raza then he will Inshallah break down the monthly rent and your share. As far as monthly payments are concerned, there is not much difference between PF and gatehouse. I hope it helps.
I got the islamic mortgage but it felt like I have got the same traditional mortgage but with higher rates. They charged me £1000 product fee, rent is based on BOE, can’t make a repayment of more than 10% same as traditional mortgages then what’s the difference? Just calling it a rent makes it halal?
You need to understand the basics of Islamic finance. Specially musharka and mudharba, the Islamic mortgages are based on Afofi principles and we may not be agreed with every single principle. There are some clauses in your Islamic mortgage contract which doesn’t make it 100% sharia compliance but does this make the whole contract invalid? Discuss clauses with a scholar who is specialise in Islamic finance and then do istekhara after you have made up your mind.
@@sarahumarrehman646 thank you for your reply. I did do istekhara before making the decision. I’m with Gatehouse because all other providers like Pfida, wayhomes etc either have long waiting times or currently not financing.
Islamic banks being helpful - so Muslims can preserve wealth is a an untested simplistic argument in my view . Imagine if there were no Islamic banks - would Muslims not invest more in entrepreneurship? Would pfida like firms not be 10x bigger - would there not be real innovation ? With this line of argument we should have tried to find shariah complaint gambling - It does pay taxes and help shareholders make money The primary beneficiary of Islamic banks have been unfortunately the shariah scholars, shariah lawyers and shariah bankers Sheikha Akkram nedawi ( teacher of yasir Qadhi) talks about why not make an exception for one home if we really believe in preserving wealth argument.
All these companies seem to be targeting the individual market. How does this apply to commercial? For ex. how can a developer wanting to build an apartment complex do so in a Sharia compliant manner?
I just used the pfida calculator. For a £400,000 house with £80,000 deposit. They have calculated a monthly payment of £2025. But it does not break down how much of that is rent and how much is equity purchase, thought its separate.
