AFFORDABLE HOME OWNERSHIP THROUGH ISLAMIC FINANCE BY: PERVEZ NASIM - - PowerPoint PPT Presentation

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AFFORDABLE HOME OWNERSHIP THROUGH ISLAMIC FINANCE BY: PERVEZ NASIM - - PowerPoint PPT Presentation

Dec 13, 2023 431 likes •742 views

IN THE NAME OF ALLAH,MOST GRACIOUS, MOST MERCIFUL AFFORDABLE HOME OWNERSHIP THROUGH ISLAMIC FINANCE BY: PERVEZ NASIM President ISLAMIC CO-OPERATIVE HOUSING CORPORATION LTD. TORONTO, CANADA PREAMBLE THE VERY FUNDAMENTAL CONCEPT FOR MUSLIMS

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IN THE NAME OF ALLAH,MOST GRACIOUS, MOST MERCIFUL

AFFORDABLE HOME OWNERSHIP THROUGH ISLAMIC FINANCE

BY: PERVEZ NASIM President ISLAMIC CO-OPERATIVE HOUSING CORPORATION LTD. TORONTO, CANADA

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PREAMBLE

THE VERY FUNDAMENTAL CONCEPT FOR MUSLIMS TO UNDERSTAND AND ACCEPT IS THE FACT, AS REVEALED BY ALLAH, OUR CREATOR AND SUSTAINER, IN THE HOLY QURAN: “AND IT IS FOR ALLAH WHATEVER IN THE HEAVENS AND WHATEVER IN THE EARTH.”

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IN OTHER WORDS, WE THE HUMAN BEINGS;

DO NOT OWN ANY THING IN THIS WORLD, ARE JUST A TRUSTEE , AND, WILL HAVE TO ACCOUNT FOR ANY AND ALL BREACHES OF THIS TRUST, ABUSE, MISUSE AND INJUSTICES

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SLIDE 4

`

RIBA (INTEREST) IS FORBIDDEN

THE HOLY QURAN, IN NO UNCERTAIN TERMS, FORBIDS AND CONDEMNS ALL DEALINGS WITH RIBA, AS WELL AS, PARTICIPATION AND WITNESSING SUCH TRANSACTIONS

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MISCONCEPTIONS AMONG MUSLIMS PARTICULARLY, AND AMONG NON MUSLIMS, AS WELL !

INTEREST FREE BANKING AND FINANCING MEANS; ‘CONVENTIONAL BANKING AND FINANCING, DELETE THE WORD “INTEREST”, ADD THE WORD PROFIT”!’`

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WHAT IS THE DIFFERENCE BETWEEN A BUSINESSMAN AND A MUSLIM BUSINESSMAN?

– TRUTHFUL AND NO DECEPTIONS; – HONESTY AND INTEGRITY; – EXPECTS BLESSINGS AND REWARDS FROM THE CREATOR, IN ADDITION TO, MONETARY PROFIT; – CONSCIOUSNESS OF SOCIAL AND ENVIRONMENTAL BENEFITS RATHER THAN JUST MONETARY BENEFITS;

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WILLINGNESS TO SHARE THE CONSEQUENCES SHARING OF GAINS, AS WELL AS, LOSSES IN SOME PREDETERMINED RATIO

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INTEREST FREE INTEREST FREE ISLAMIC ISLAMIC FINANCING FINANCING MODELS: MODELS:

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LET US NOW EXAMINE SOME OF THE INTEREST FREE ALTERNATIVES AVAILABLE TO US FOR FINANCING: MODEL A: IJARAH OR LEASE/RENTAL MODEL B: MURABAHA OR PURCHASE ON INSTALLMENTS MODEL C: MUSHARIKAH OR PARTNERSHIP MODEL D: MUDARABAH OR LABOR AND MONEY PARTNERSHIP

`

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Islamic Co-operative Housing Corporation Ltd.

  • North America’s First

Islamic Financial Institution

  • An Interest-free Housing and

Investment Scheme

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Islamic Co-operative Housing Corporation Ltd.

THE SHARIA MODEL ADOPTED BY THE CO-OP

  • Musharikah or Partnership model was

adopted;

  • For its simplicity and practical nature for the

long term transactions;

  • The model was modified a little to make it a

Decreasing Partnership;

  • A Partnership between a Family and the

Community (Co-op);

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SLIDE 12

A PARTNERSHIP

Between the Islamic Financial Institution and The Prospective Home Owner

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FACTORS AFFECTING THE FINACING COST

  • EXPECTED RATE OF RETURN ON

INVESTMENT

  • APPRECIATION IN THE PROPERTY

VALUE

  • SHARING THE APPRECIATION WITH

THE HOME BUYER (WHAT RATIO)

  • ADMINISTRATIVE OVERHEADS
  • LENGTH OF FINANCING CONTRACT
  • DEFAULTS AND LOSSES
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Islamic Co-operative Housing Corporation Ltd.

MEMBERS COMMITMENTS:

  • PAY $75 MEMBERSHIP FEE TO JOIN
  • BUY 6 SHARES OF $100 EACH ANNUALLY
  • INVEST FIRST AND BUY SHARES
  • 20% OF 1ST $100,000 COST OF HOUSE
  • 40% OF UP TO THE NEXT $100,000 COST
  • SHARE GAIN/LOSS 10% WITH CO-OP`
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Islamic Co-operative Housing Corporation Ltd.

SHARING OF GAIN OR LOSS

  • As a result of sale/transfer of the housing unit any gain or

loss realized will be divided as follows:

– A. If, at that time, the member has more than 50% shares - 10% to the Co-op and 90% to the member. – B. If the member has 50% or less shares - 20% to the Co-op and 80% to the member.

  • The capital gain or loss will be shared after making an

adjustment for authorized improvements, expansions and certain legal expenses incurred by the member.

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Islamic Co-operative Housing Corporation Ltd.

THE CO-OP IS BEING MANAGED BY A BOARD OF SEVEN VOLUNTEERS

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Islamic Co-operative Housing Corporation Ltd.

500 1000 1500 2000 2500 Members 1982 1983 1985 1987 1989 1991 1993 1995 1997 1998 1999 2000 2001 Year

Increase in Membership

Current year f igures to April 2001

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Islamic Co-operative Housing Corporation Ltd.

55

1187

1 1 26 3 34

16

30 2 13

Canada

M em bers by P rov in ce

1 Y ukon , PEI (2) 2 New Brunsw ick (1) 3 New foundland (1) 13 Nova scotia (1) 16 S aska tchew an (1) 26 M anitoba (1) 30 B .C. (1) 34 Q uebec (1) 55 A lberta (1) 1,187 O ntario (1)

C a n a d a

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Islamic Cooperative Housing Corporation Ltd.

O verseas - 8 0 M e m be rs

  • N. Carolina

Georgia Illinois

  • W. Virgina

Minnesota

Indiana Missouri Florida

New York Washington

California Utah Texas 5 5 5 2 7 4 6 1 1 1 1 1 1 4 8

United States

M em bers by Sta tes 1 M em ber (6) 2 M em bers (1) 4 M em bers (2) 5 M em bers (3) 6 M em bers (1) 7 M em bers (1) 8 M em bers (1)

United States

Virginia New Jersey

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Islamic Co-operative Housing Corporation Ltd.

50 100 150 200 250 300 350 400 450

  • No. of Units

1982 1983 1985 1987 1989 1991 1993 1995 1997 1998 1999 2000 2001 Year

Increase in Housing Units

Current year f igures to April 2001

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Islamic Co-operative Housing Corporation Ltd.

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

Income in Million $

1983 1985 1987 1989 1991 1993 1995 1997 1998 1999 2000 Year

Increase in Income

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Islamic Co-operative Housing Corporation Ltd.

Sharing Income

Patronage Dividend 80% Operating Expenses Maximum Limit 20%

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Islamic Co-operative Housing Corporation Ltd.

0.0 2.0 4.0 6.0 8.0 10.0 Dividend % 1983 1985 1987 1989 1991 1993 1995 1997 1998 1999 Year

Patronage Dividend

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Islamic Co-operative Housing Corporation Ltd.

PRESENT STATUS

  • In nineteen years, purchased over four

hundred and ten (410) houses;

  • Sold over $28 Million worth of Shares;
  • Gave Dividends between 6% and 10%.

For the last year it was 7%;

  • Membership has grown to over 2,300

including a good number from overseas as investors;

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  • Islamic Co-operative Housing Corporation Ltd.
  • Serving the Muslim Community since 1981
  • OUR OTHER PROJECTS:

OUR OTHER PROJECTS: OUR OTHER PROJECTS: OUR OTHER PROJECTS:

  • ANSARCO INC.

ANSARCO INC. ANSARCO INC. ANSARCO INC.

–Investments in Muslim Businesses

  • AL

AL AL AL-

  • AMIN

AMIN AMIN AMIN ASSOCIATION

– INTEREST-FREE RETIREMEMT SAVINGS PLANS

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OUR OTHER PROJECTS THROUGH ANSARCO GROUP OF COMPANIES:

  • CAR PURCHASE PLANS (COP)
  • RETAIL PLAZA JOINT VENTURE IN

ALBERTA

  • BUSINESS & EQUIPMENT FINANCING
  • INTEREST FREE RETIREMENT PLANS
  • HEALTH CARE RELATED PROJECTS .. …….
  • MEDICAL BUILDING PURCHASE …….
  • MEDICAL CLINIC
  • HOUSE BUILDING PROJECT … 150 HOUSES

(ANSAR CONSTRUCTION LTD.)

  • ISLAMIC INSURANCE CO. (TAKAFUL)

SOON INSHALLAH!

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Islamic Co-operative Housing Corporation Ltd.

OTHER COMMUNITIES COPIED OUR MODEL:

  • ST. LOUIS

MONTREAL SAN FRANCISCO NEW JERSEY/NEW YORK AND MANCHESTER, U.K. …….. ………. LONDON IN PROGRESS

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FUTURE DIRECTIONS

  • Now we are focusing more on major

business projects that can provide community services in an Islamic environment, as well as, provide employment opportunities for the community;

  • For example Health Care Projects;
  • Real Estate Property Development Projects,

INSHALLAH! (GOD WILLING)`

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PLEASE VISIT OUR WEB SITE The Financial Link to the Community

http://www.isnacanada.com/ichc.htm

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THANK YOU AND MAY ALLAH BLESS YOU!

THANK YOU FOR YOUR PATIENCE!