Halaal way to benefit from your savings without interest

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#1 [Permalink] Posted on 28th August 2021 14:53

السلام عليكم و رحمة الله و بركاته

I started something a few months ago for friends and family to put savings into an account to purchase and own property.

In UK, from immediate yield it takes an average of 23 years to recover the cost of a property. With inflation, appreciation and rent increase, it takes an average of 17 years. To buy it outright and not wage war on Allah by dealing with Riba in mortgages could take a lifetime of saving and is practically impossible for the majority. It's just not for everyone. But there is way I hope.

I knew that savings sit in an account and depreciates every year. You receive 1% interest from the Jewish banks which a Muslim cannot use. Instead, what if there was a way to put it into an account with savings from others, purchase a buy to rent property with an option to withdraw your ownership and savings any time you want? Until then, you can get back 4-8% each year on the money that sits from the rental income.

Alhamdulillah this is all done and ready. We have our first property as well and the shares are available to grab to put your savings into.

This is for UK bank account holders only.
I have enabled my PM's for this. You may PM me for the link so you can read more and read some examples scenarios.
I am personally involved and part of the running of this. There's transparency and accountability so feel free to PM me any questions you have.

Wassalam

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#2 [Permalink] Posted on 28th August 2021 15:27

Salaam.

Send the link please.

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#3 [Permalink] Posted on 28th August 2021 15:53

Salam

Send me the link please. Not in a position this year but insha'Allah in future.

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#4 [Permalink] Posted on 28th August 2021 16:20

Sent to both. You are free to share the PM I sent to you with anyone privately.

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#5 [Permalink] Posted on 29th August 2021 01:46

I have family in the UK who may be interested. Please send me a link as well. Jazakallah.

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#6 [Permalink] Posted on 29th August 2021 03:21

AssalÄmu `alaikum WarahmatullÄhi Wabarakatuh.

Please send me a PM.

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#7 [Permalink] Posted on 29th August 2021 11:28

Yasin wrote:

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I am interested please send me a link

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#8 [Permalink] Posted on 29th August 2021 14:05

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sharjan8643 wrote:

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Yes that's fine. In fact, one does not need to be in UK. A UK bank account is required for withdrawing rental income and to deposit savings without any charges, exchange, losses.

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#9 [Permalink] Posted on 30th August 2021 00:41

Please could you also send me link/further info
Jzk

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#10 [Permalink] Posted on 30th August 2021 08:37

Salaam.

So in a nutshell, a group buys a property together and profit is made on the monthly rent after overheads and expenses are taken out. Each person gets paid out based on how much they invest. You can buy in and sell out anytime.

Is that correct?

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#11 [Permalink] Posted on 30th August 2021 10:53

xs11ax wrote:

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xs11ax wrote:

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Yes pretty much. But to be more accurate, it's not "depending on how much is invested" but rather "equivalent to their ownership" because 2 people can invest the same amount but a year apart. Property values increase every year in UK so the one who went in a year before will most probably earn more as he owns more of the property as the second purchased after the value increased. The holding company doesn't own or earn anything, it's the ones who purchased.

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#12 [Permalink] Posted on 30th August 2021 12:40

Yasin wrote:

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So pay out is equivalent to the number of shares a person holds and the price per share is dependant on the value of the property?

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#13 [Permalink] Posted on 30th August 2021 13:43

xs11ax wrote:

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Exactly. This way, if a person sells a year later and the property value increased, the share value goes up with it so upon selling, he'd get a little more than he paid. At the same time, if the property value drops then he'd get less than he paid for. It's exactly as if you owned your own property and sold it. You can get more, sometimes less. But all the rent you received during ownership is always yours. So it's the same thing but at a smaller scale coz no average regular person really has 300k sitting around so this makes it possible to start somewhere. This was the real purpose (lesson taken from Yahood in working together)

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#14 [Permalink] Posted on 30th August 2021 14:05

Yasin wrote:

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It's a really good idea. But I'm guessing there will be a lot of details that will need ironing out.

Examples.

Maintenance and repair costs. Will there be money put aside to cover this? Or will shareholders get charged as and when required? What if a shareholder does not have the required money to cover unanticipated repairs?

What if the property gets damaged beyond repair or the repair costs are too high? Will this be covered by 'halal' insurance? (I don't know if such a product exists.)

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#15 [Permalink] Posted on 30th August 2021 15:12

xs11ax wrote:

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You're right, many questions were asked like this. I say the main thing to remember is that it's like owning your own, you'll have costs and that'll be equivalent to your ownership only. For the current property already attained, it's low yield (4.08%) which is decent according to openpropertydata as we went for safety and track record first. 6-10% would be amazing and possible but those properties come with higher risk. Maybe in future it can be considered. Better to go safe and steady first. There's standard required insurance for tenanted properties so the management company deals with all of that. There's a lot of certificates required as well, all these costs are deducted before rent is received so investors will never have to pay separately, it's deducted before the rent is distributed.

As for unexpected high costs, future rent can cover it, we have extra balance as well but either way, the owner is responsible. This is why I don't call it an investment plan or scheme which I'm always sceptical about when they say "no risk investment" as there's no such thing in reality. It's literal ownership without the extra headache. It falls under all the general Islamic rules of trade, ownership and transactions.

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