Halal Property Investing: What You Need to Know
The COVID-19 pandemic has not only affected people’s health but also the global economy, including the property market. According to the FT, house prices in almost every major economy are booming, with annual price growth across the OECD group of rich nations hitting 9.4%, the fastest in 30 years. As the property market continues to grow, Muslim investors must ensure that their investments are halal or permissible under Islamic law. In this article, we will provide an introduction to halal property investing and explore three possible ways to invest in property.
Halal investing is investing in a way that is compliant with Islamic law. For Muslim investors, it is important to ensure that each investment contract is shariah-compliant, meaning that the subject matter is halal, there are no interest charges, and the investor must have a form of ownership of the property. Moreover, it is essential to use halal capital in property investments. If the capital is haram or unlawful, any profit made from the investment will not be halal either, even if the investment itself is halal.
Three Possible Ways to Invest in Property
Conventional mortgages are considered haram based on the element of interest present. It would not be permissible to apply for one to finance an investment opportunity. However, there are halal alternatives available. In the UK, for example, there is a sharia-compliant halal buy-to-let scheme that provides halal financing for property purchases.
A Real Estate Investment Trust (REIT) is a company that owns and manages property on behalf of shareholders. Sharia-compliant REITs are similar to conventional REITs but must undergo property and tenancy screening. Properties selected for Islamic REITs must be compliant with shariah law. Additionally, a sharia board manages the REIT to ensure it remains compliant.
Crowdfunding platforms connect people seeking equity or debt funding with investors. The investor is part of a large group of people who finance a project put forward by its owner. For debt-based crowdfunding, investors expect the borrowers to repay the full amount, including interest. This is haram under shariah law. However, halal financing options such as tawarruq or murahaba agreements could be used for Islamic debt-based crowdfunding. For equity-based crowdfunding, the investor must ensure that the investment is shariah-compliant, including the screening process, and that the portfolio excludes properties that facilitate activities such as gambling.
Zakat is an Islamic obligation, a form of charitable giving, that Muslims must pay on their wealth annually. Depending on the structure of the investment, zakat will be calculated based on the investor’s intention at the time of making the initial investment. If the investment’s aim is to generate rental income, the investor pays zakat only on the money they have on their zakat anniversary date, not on the properties value. However, if the investment’s aim is for capital growth, the investor pays zakat on the market value of their investment on their zakat day.
Q: What is halal investing?
A: Halal investing is investing in a way that is compliant with Islamic law. It means ensuring that each investment contract is shariah-compliant, using halal capital, and investing in halal subject matter.
Q: What is haram money?
A: Haram money refers to money that is obtained from haram sources, such as gambling, alcohol, or illegal activities.
Q: Can I invest in property using a conventional mortgage?
A: No, conventional mortgages are considered haram under Islamic law due to the interest charged. However, there are halal alternatives available, such as sharia-compliant buy-to-let schemes.
Q: What is a sharia-compliant REIT?
A: A sharia-compliant REIT is a Real Estate Investment Trust that complies with shariah law, meaning that properties selected for the REIT must be shariah-compliant, and a sharia board manages the REIT to ensure it remains compliant.
Q: Can I invest in property through crowdfunding?
A ; Yes, but the financing options used must be halal, and the investment must be shariah-compliant.
Q: How is zakat calculated for property investments?
A: Zakat is calculated differently based on the structure of the investment. If the investment is for generating rental income, zakat is paid on the money the investor has on their zakat anniversary date. If the investment is for capital growth, zakat is paid on the market value of the investment on the zakat day.
Halal property investing requires Muslim investors to ensure that their investments are compliant with Islamic law. This includes using halal capital and investing in shariah-compliant subject matter. As the property market continues to grow, Muslim investors can consider alternatives such as sharia-compliant buy-to-let schemes, shariah compliant Investments, and crowdfunding. Additionally, zakat treatment for property investments varies based on the structure of the investment, and investors must ensure that they pay zakat accordingly.
Umar Nisar was born and raised in the busy city of Abbottabad. As a journalist, Umar Nisar has contributed to many online publications including PAK Today and the Huffing Post. In regards to academics, Umar Nisar earned a degree in business from the Abbottabad UST, Havelian. Umar Nisar follows the money and covers all aspects of emerging tech here at The Hear Up.
How Titan Decking Outperforms Other Decking Materials
If you’re considering replacing your old, worn dock decking or simply want to upgrade your pier or marina, you should consider a few things. Titan dock decking offers many benefits over other decking materials.
It’s designed to minimize damage from wind, waves, high water, and storm surges. It also won’t rot, warp, dent, or splinter and never needs staining or painting. Here is how titan decking outperforms others.
Titan Decking is made from 100% polypropylene plastic which is a sturdy marine decking material that will take all the wear and tear mother nature can throw at it. It’s UV protected to minimize fading and has a barefoot-friendly surface that stays cool in extreme temperatures.
It’s ideal for commercial and residential boat piers, marinas, and marine docks. It also works well for gangways, stairs, and section decking.
Installation of Titan Decking from this website is simple. Simply screw the individual boards to your existing dock system frame. They can also be assembled into panels that allow easy winter removal or access to water dock utilities such as electrical and plumbing.
Unlike composite decking, which can be prone to cracking and warping, Titan Deck is designed with your performance and building requirements in mind. It’s engineered to be stronger, longer lasting, and the last dock decking you’ll ever use.
Your boat dock or pier is where you and your family love to spend time, whether fishing, casting a line, or simply enjoying the view. It’s the place where memories are made and a place you will never forget.
A well-built boat dock system is the backbone of your boating experience and will last a lifetime. However, years of use, sunlight, and extreme temperatures can take their toll on your dock boards.
To extend the life of your dock system, it is important to re-deck with new boards. Using Titan marine decking on your old dock system will give you the long-lasting strength and durability you need to enjoy your time at the water’s edge for decades.
The Titan plastic marine decking is built to withstand years of use and bare feet. It is molded with a knurled surface to prevent slipping, even when the surface gets wet.
Titan decking is available in a variety of styles and colors. Whether you’re looking for a classic dock board or an eye-catching accent to your dock, you will find the right style of Titan decking for your project.
Titan Decking is designed to last a lifetime without painting or staining. It’s barefoot friendly, skid-resistant, and stays cool to the touch in extreme temperatures. It’s made from 100% polypropylene plastic, which means it will never rot, warp, dent, splinter, or bend. It’s also UV protected to minimize dock deck fading.
You can choose from three popular styles of decking for your dock. Titan’s Classic and X-Series decks feature the look of natural wood with a slotted surface to give them a classy appearance. They’re available in gray and med cherry colors.
When planning your next dock project, consider all the options and decide which material is best for your boat dock system. The key is to choose a material that will meet your needs and budget. It’s worth considering how long you’ll use your dock, the weather, and any potential environmental factors before deciding. With that knowledge, you can be confident you’re making the right choice for your dock.
Titan Deck is a 100% polypropylene plastic, barefoot-friendly dock decking material. It’s UV protected and stays cool to the touch even in extreme temperatures, making it an ideal choice for a commercial boat pier or marina.
Titan decking is manufactured in individual boards for flexible installation and is easily screwed to your existing dock frame. It can also be assembled into panels that allow easy removal of your water dock system at the end of each season.
One of the best aspects of the classic series is that it can be customized to fit your unique dock space. Our experts can help you choose the right color and shape to match your property, ensuring a seamless transition from indoor decor to outdoor enjoyment.
Cool in Extreme Temperatures
Titan Decking is strong and durable, with a knurled surface that prevents slipping even when the deck is wet. It has a UV-protected finish to minimize fading and will not rot, warp, dent, or splinter.
This 100% polypropylene plastic material is environmentally safe and will never need painting or staining. It is barefoot-friendly and stays cool to the touch in extreme temperatures. It’s a great option for boat docks, gangways, and stairways subject to harsh weather conditions.
Hamza Fazal is a reporter for The Hear UP. After graduating from the University of Abbottabad, Hamza got an internship at the NPR and worked as a reporter and producer. Hamza has also worked as a reporter for the Medium. Hamza covers health and science for The Hear UP.