Posted by: islamicfinancingnews | November 4, 2012

Islamic Finance and Property Value Work Together

Islamic finance needs to consider several different values to be successful. Avoiding riba and staying compliant with Sharia Law are a necessary cornerstone of these mortgages, but there are some other practical concerns that you need to take into account as well. For example, property value is one of the concepts that should be looked at carefully before you make any purchases.

Property value is one of the ideas that should tell you whether you’re making a good or bad purchase and the location of the property is the first factor you need to consider. If the home you’re thinking about is conveniently located near amenities like a good transportation network and schools and shopping, the chances are you’re looking at a property with some solid investment potential that will pay off when you go to resell.

Find out if the area that you’re looking at is in demand. When people want to buy in the area that means the prices will be higher. Be careful here since even if there is a high demand for homes in the neighborhood you are contemplating, supply can dictate the price and overall property value as well. The more homes there are of the type that everyone wants, the less they will sell for.

Looking at the entire picture is a good idea when you’re considering getting involved with Islamic mortgages.


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