Well, the following analysis is based on conventional Haram Riba, which shows that buying with interests is not a good model. Bare in mind that this comparison did not consider the sin of dealing with Riba and the evil consequence in this life and the hereafter.
If we do the analysis comparing equity (co-owing a house vs. financing with Riba), you’ll see that the Halal equity model is far better. BTW, Halal equity model mentioned here is not what the so-called “Islamic” financial banks offer.
Recommended Resource:
CD Set: Let’s Buy a House Islamically, By Ghassan Barqawi
After a quick search online, the following result was found:
[disclaimer: We have no affiliation with the result pasted below]
Buying a home is a major dream for almost every family. However, it is a decision that goes well beyond finances. You want your home to reflect your values and your lifestyle. The biggest advantage to owning a house over renting an apartment is that your house belongs to you. It’s your home, and that’s a pretty big achievement in itself. This is why when a person is ready to buy a house, emotion can often get in the way of effective decision making. Not only can it hinder sound financial planning, but it can lead one into major sins. This CD Set is a guide to know what Islamic Finance really is, how one can understand the different terms used by various Islamic financial institutes, and how to make the best decision for your family in this life as well as the next. Shiekh Ghassan had the honor to study under the late scholar of Yemen, Shiekh Muqbil bin Haadi al-Waadi’ee, and earned an Ijaazah in Hadith from him. He has a Masters degree in Business and is an advisor who is able to give guidance in the field of Finance. He is also the founder of the Islamic Institution of Islamic Studies of Columbia, South Carolina. At present he is the Imam of the Islamic Center of Mobile, Alabama.
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