Need to buy house on staggered payment

Discussion in 'Housing' started by shakila banu, Mar 20, 2008.

  1. shakila banu

    shakila banu Bronze IL'ite

    Messages:
    285
    Likes Received:
    18
    Trophy Points:
    33
    Gender:
    Female
    Dear friends
    I need to buy either a independent house or a flat in chennai preferrably in chempakkam or porur area.
    Now let me express my thoughts to you all. I am not interested in getting a loan from the bank on religion point of view to pay the interest. So my query to you all is there any idea of getting either a flat or an independent house in chennai on installment basis that is as per our religion banker is a third party whereas i can pay the same amount on installments like the bank to the seller. By this it is not an interest and it becomes legal. I am sorry if I am wrong in any way to you all expressing my thoughts. Awaiting your valuable suggestions and ideas. Thanks in advance.
     
    Loading...

  2. vkrithika1

    vkrithika1 Gold IL'ite

    Messages:
    927
    Likes Received:
    582
    Trophy Points:
    195
    Gender:
    Female
    hi bhanu,

    There are so much legal issues in these transactions.You have to be very careful and the sellers may register only when the instalments are paid in full.It is very difficult to find genuine sellers in this way.

    So be verycareful before you take any step.
     
  3. beenas64

    beenas64 New IL'ite

    Messages:
    16
    Likes Received:
    0
    Trophy Points:
    1
    Gender:
    Female
    Dear Shakila,
    Are you looking for a new construction or a second sales apartment?
    If it is a new apartment or independent house,then the developer will give you a payment schedule based on the time lines of construction. Typically they will ask you for a booking advance, some amount when sales agreements are enterd, then some amount during registration, then on foundation etc.This way you are directly paying the developer and in installments.
    Now if you are talking about second sales, then it is next to impossible, because the seller, most often an individual, will insist on full payment, possibly in two or three tranches.He or she will ask for a down payment initially, when they part with all the documents of the property, for your verification. Then in your own interest, you must insist for an Agreement. In which case the seller will normally want a substantial down payment. Both of you, the buyer and seller will have to agree on a date for Registration, by which time the balance amounts need be paid.
    If you can afford it go for new construction because it would make your task simpler.Also you need not pay too much on Registration this way.
    Additionally, there are banks today which offer Islamic Funding. I do not know where you are posting from, but if it is the Middle East there should not be a problem. There are some banks which are considering Islamic Funding in India as well- Please check out in the banking circles. Meanwhile if I come across any information I shall inform you through subsequent posts.

    Best of luck [​IMG]

    Beena
     
  4. beenas64

    beenas64 New IL'ite

    Messages:
    16
    Likes Received:
    0
    Trophy Points:
    1
    Gender:
    Female
    Dear Shakila,
    I think the people of Indusladies are all broad minded. Our members are very helpful.. It does not really matter which caste or creed or religion we may individually belong.We all belong to the same community of human beings- I do not think there is any need for you to feel sorry.
    Here is some more information on Islamic Banking.....


    ``Globally, Islamic finance is estimated to be worth about $300 billion, growing at 20% annually. With this growth, the need for Shariah compliant financial products has also increased. The product offerings are similar to normal banking products; however the main difference is that the funds collected are not for the purpose of accumulating/ paying interest or invested in any negative businesses that harm morality of the society. The basic principle of Islamic banking is the prohibition of interest.
    India with a 13% Muslim population, the highest in a non-Islamic country, should have been in the forefront of Islamic banking initiatives, but it is yet to be permitted here. It will hugely benefit the Indian economy by attracting investments from the cash rich Middle Eastern economies on the lookout for new investment destinations. Five Indian companies, Reliance Industries, Infosys Technologies Wipro, Tata Motors and Satyam Computer Services figure in the Standard & Poor’s BRIC Shariah Index.

    Under Islamic banking, the conditions for investing in shares are:
    1. It is not permissible to acquire the shares of the companies providing financial services on interest, like conventional banks, insurance companies, or the companies involved in some other business not approved by the Shariah, such as companies manufacturing, selling or offering liquors, pork haram (prohibited) meat, or involved in gambling, night club activities, pornography, gold trading, advertising and media (with the exception of newspapers).
    2. If the main business of the companies is halal (lawful), like automobiles, textiles etc, but they deposit their surplus amounts in an interest-bearing account or borrow money on interest, the shareholder disapprove such dealings.
    3. If income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given to charity, and must not be retained by investor.
    4. The shares of a company are negotiable only if the company owns some illiquid assets. If all the assets of a company are in liquid form, i.e. in the form of money, they cannot be purchased or sold except on par value, because in this case the share represents money only and the money cannot be traded in except at par.
    5. For companies whose main activity is not un-Islamic but a part of their income is not purely Islamic or a minor part of it comes from un-Islamic activities are prohibited, for example hotel, sugar, entertainment etc.
    Once companies are chosen from the above criteria, further screening is done on the basis of following financial ratios:
    • Exclude companies if Total Debt divided by Trailing 12-Month Average Market Capitalization is greater than or equal to 33%.
    • Exclude companies if the sum of Cash and Interest Bearing Securities divided by Trailing 12-Month Average Market Capitalization is greater than or equal to 33%.
    • Exclude companies if Accounts Receivables divided by Total Assets is greater than or equal to 45%.
    For profits made through capital gains, the accepted rule is that if requirements of the ‘halal’ shares are observed, then most of the assets of the company are ‘halal’, and a very small proportion of its assets may have been created by the income of interest, so the whole price of the share therefore, may be taken as the price of the ‘halal’ assets only.
    The real estate sector is attracting investment from Middle East, as fund raising has got difficult in this sector. Around 50% of Indian stocks are believed to be Shariah complaint, but very few companies realize the potential., which is primarily due to non-availability of data on Shariah based investment appetite among local Muslims. Investors, local as well as global, will find Indian stock market a better place to invest, and sectors like IT, pharmaceuticals, automobile, energy, cement, steel and mining to choose from. Thus Islamic investment options available in India are wider and much better than the availability of the same in many Islamic countries.''

    Beena
     
  5. shakila banu

    shakila banu Bronze IL'ite

    Messages:
    285
    Likes Received:
    18
    Trophy Points:
    33
    Gender:
    Female
    Dear beena

    thank you very much for your detailed reply. Let me read and understand clearly and will be back to you. Thank You very much for spending your valuable time in answering me. Bye.
     
  6. shakila banu

    shakila banu Bronze IL'ite

    Messages:
    285
    Likes Received:
    18
    Trophy Points:
    33
    Gender:
    Female
    Dear beena

    After your detailed explanation i also went through various sites on net regarding the shariah loan. It is like the bank buys the house on our behalf and it sells it to us keeping some profit for them. In this way it becomes legal. Could you please help me out still further the name of all the banks with shariah in chennai so that it would be more easier for me to contact them from Saudi and also to know the maximum amout they can give and the time duration to repay. Please help me. Thank You.
     
  7. syedmdharis

    syedmdharis New IL'ite

    Messages:
    2
    Likes Received:
    0
    Trophy Points:
    1
    Gender:
    Male
    Shakila.. Did you get any information after this?
     

Share This Page