Darul Iftaa Mahmudiyyah

Is it permissible to buy an investment property (for renting) using islamic/shariah financing?

Published as Buying an investment property (for renting) using Islamic financing

· 16 Muharram 1440 AH1 min readFatwa 40924English

Question

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.

Answered by
Mirza Mahmood Baig
Checked & approved by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/40924
Fatawa SA: https://fatawa.co.za/fatwa/askimam-40924

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