5 Good Reasons to Use Islamic Financing To Buy Real Estate

Using Islamic financing to invest in real estate isn’t just for rich and famous people. You can get involved. Even if you’ve only got a tiny down payment to begin with.

Ijara Community Development Corp. understands there are different things you need to think about before one of these transactions. Here are five good reasons to buy real estate.

1. Stability. Staying in the same place for several years gives you a chance to build a community. Your children also have educational and social anchors.
2. Equity. This is the current market value of your house minus what you owe. Here’s a handy equity calculator that can help you figure some numbers out.
3. Tax Breaks. Sharia-compliant financing will help you to stay away from riba. However, there are some homeowner tax breaks you should know about. For example, lower-income households get a break. And there are some excellent incentives from the IRS for energy efficiency.

Here’s How Islamic Financing Works

It’s important to understand how the Islamic financing system we use works. We use an asset-based process. Rather than credit based. The ijara loan works with the lessor-lessee relationship.

• The first step is a trust purchasing a property with the customer supplying the down payment.
• The customer pays back a percentage of the purchase price every month. The money is paid off as rent. However, the customers’ percentage of ownership grows with each payment.

This system allows everyone to stay sharia compliant. All the more reason to read the other points about why homeownership is a good thing.

4. Prices Go Up Over Time. Home prices may have dropped recently. However, the historical trend is they rise over time. A home is still a safe long-term investment.

5. You Will Own The Place. Eventually, you will pay the place off and own it. That means you’ll be able to renovate and do what you want with the property. You will own a piece of the American and Canadian dream.

Islamic Financing and Funding A Purchase

Ijara Community Development Corp. provides an excellent way for a family or business person to fund the purchase. One of our Islamic financing alternatives can help you with the decision-making process.

Islamic Finance Residential and Commercial Programs

We have both residential and commercial programs. Entrepreneurs want to know about our commercial loan programs that include investment real estate, and business expansion. And acquisition and other programs for owner-occupied properties.

Staying on top of recent developments like decentralized common sense tokens is important too. That’s why we like to suggest people have a look at what Ethical Finance. co has to offer. Read all about  #DECOM and how it makes homeownership affordable.

An Alternative

This is a big part of how Ethical Finance. co offers an alternative to traditional mortgage financing. Ijara CDC is involved . Ethical finance is behind this new venture. It is also called sustainable finance.