6 Benefits to Owning Your Own Home from Islamic Finance Professionals

Getting an ijara mortgage with Islamic finance is a great way to enter the real estate market. You will be able to enjoy staying sharia compliance and the benefits of owning your own home. Here are six of those benefits you might not have considered.

You Get Control Over Your Space

If you rent, you don’t have a lot of options to change your living space. If you want to alter your atmosphere, the chances are you’ll need to move. That’s not the case when you get the keys to your own home through Islamic finance.

Not only can you change the house to the way you want it. You can enjoy the added bonus of home improvements that increase the value. Here’s another bonus. When you own a house, you have equity in it. At a certain point, you can draw on that cash to make further improvements.

You Gain A Community

The longer you stay in one place, the more you put roots down. Homeowners tend to get to know one another and build lasting relationships. Having a community adds to the security and peace of mind you get with your own place.

You Don’t Need Too Move Around

Buying a house through Islamic finance means you can put down roots. When you get the keys to your own property you gain financial security. You’ll stop moving from place to place looking for a better economic situation and cheaper rent.

With your own house, you’ve made an emotional and financial investment. Your life will be more stable.

You Get Equity

Islamic finance will make sure that you are sharia compliance when you enter the real estate market. However, there are some more traditional Western advantages to owning property. The more payments you make to the trust, the more equity you gain.

Eventually, you’ll see the balance you owe on drop and your equity rise. Soon you’ll be able to use that money for renovations or other projects.

Some people even take the equity in their home out to help with relative’s educations.

You Get Tax Benefits

There are certain tax benefits to home ownership. If you have a home-based business, you can make certain deductions every calendar year. The American government offers tax incentives for homeowners regardless of whether they have a business in the house.

You can deduct the interest from your mortgage payments. There are other tax benefits depending on your situation. Remember, it all starts with getting an Islamic finance loan.

You Can Reinvest

Once you start to put together some equity, you’ll see there are other possibilities to reinvest. Paying your mortgage down means that you can make future investments in things like a second home.

There are other options like a home equity line of credit. That tool allows homeowners to use the power of the property that they’ve already paid off. There’s a nice balance between the Western investment model and Islamic finance.