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Buying an investment property (for renting) using Islamic financing

Answered according to Hanafi Fiqh by Askimam.org

Aoa. Is it permissible to buy an investment property (for renting) using islamic/shariah financing ? (assuming that the bank is sharia compliant). I was once told my a local Imam that I should avoid islamic financing (when i was purchasing my own home) if I can (e.g., buy a smaller/cheaper home w/o loan, instead of trying to buy a nicer home with islamic financing)

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

If the Islamic/Shariah financing is Shariah compliant, it will be permissible to buy an investment property through that.

However, one should be alert that there are many banks/Islamic investment schemes incorrectly claiming to be Shariah compliant.

And Allah Ta’āla Knows Best

Mirza Mahmood Baig

Student Darul Iftaa

Jeddah, KSA

Checked and Approved by,
Mufti Ebrahim Desai.

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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