The housing market might be slowing down but the demand for Islamic mortgages and a second-home remains healthy. Now might be the perfect time for an ijara loan and your next property.
Here’s the top five things you need to know to make it a smart investment.
Resist Impulse Buying
Don’t grab the keys to a second house before you do some research. Take a deep breath and be realistic about what you can afford to fix. Don’t downplay flawed thinking that you can repair everything yourself. That could be a costly mistake.
Over bidding can be another expensive part of impulse buying. It can cause issues with ijara mortgages, the appraisal and even reselling the home.
Check Out The Location
Buying a new home using the crypto tokens offered by Ethical Finance.co will keep you free from riba. However, you can’t change the location of a second property after you’ve bought it. Maybe you’re buying a second property as a vacation spot?
It’s important to understand the history of the place you want to purchase. Connect with local real estate agents so they can help you determine the property’s appreciation value.
Go Over The Costs and Don’t Forget Those Ijara Mortgages
It’s important to remember that even if you have ijara mortgages, real estate is a long-term investment. You don’t want to forget about additional costs like maintenance and insurance when you’re adding up what it will set you back to own a second-home.
If you’re looking at an area that’s at a higher risk for flights or hurricanes and other natural disasters, the insurance can be more. Make sure to get several different quotes before deciding on one.
As far as the upkeep goes, you should put aside 2% of the market value every year for repairs and upkeep.
Consider The Lifestyle
Considering a vacation home? People buy these because they don’t need reservations. They can go and enjoy the property whenever they want. Many people planning on buying a vacation home will want to retire there.
That’s why you need to consider location, layout and if it will fit your needs. Keep in mind that a townhouse in a bigger city might have too many stairs when you’re older. Likewise, a vacation home in a place in central america might not have access to the healthcare you will need.
Finally, it’s a good idea to think about your second home as a potential investment.
Some people can offset the cost of the second-home by renting it to the right people. It can be a long-term rental if you bought it and plan to retire in it. It can also be a short-term rental if it’s located in a vacation hotspot.
Remember, we offer ijara mortgages as an alternative to a conventional bank loan. Get in touch with us today to go over our riba free financing alternatives and the right Islamic home financing option for you.