Buying properties on interest loans : buying a condo on interest and renting it for income

Fatawa Question

Assalaamu 3alaykum, I got your email from a tele-presentation you did at the MAS convention 2 years ago. I have three urgent questions : 1. My fiancé has a condo that he has a mortgage on and rents out. He plans on renting another apartment closer to his work and keeping the condo. Is that Islamically allowed ? I suppose he got it to live in, then he found out the importance of distance from work, this does not make it purchased for investment. Buying a place to live in is not Haram, in America, on Riba, in like buying for investment (renting). There is a very sound Fatwa on this matter and I agree to it because buying a place of residence is a high priority and a lot of convenience ; this makes it permissible when Islamic finance is not available. 2. He originally was approved to get his mortgage through guidance financial (shari3a compliant company) but they backed out last minutes due to the location of the condo. He now wants to sell the condo to me through a Shari3a compliant sale. What should I do in that case ? I don’t believe in mortgages and I would rather rent the rest of my life but if doing it is less Haram on him should I do it ? I don’t blame you although I don’t agree with you as mentioned above. If change of ownership is to your convenience, both as would be husband and wife, I see no reason for being not permissible. 3. My fiancé recently got a job working at an investment management firm booking trades and checking contracts. These are all types of trade including derivatives. Is this Islamically allowed ? What are the limits in working in such a field ? I believe that booking a trade for a client of a Haram item is not permissible. Most derivatives and bonds and many shares and their likes are Haram to buy / sell and equally Haram to book a trade for any of them. giving an advice is not like that, definitely is lesser to the extent that I cannot claim it is Haram. Jazakallahu Khayran for your assistance. I actually know you son Yaman's family and your daughter and Masha Allah you have a beautiful family. Jazallahu Khairan again Waasalaamu 3alaykum Warahamtullah

Fatwa

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Publication Date

2012-10-14

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Dwellings
• Income
• Purchasing
• Rent
• Usury

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-729863

• APA
• MLA
• AMA