Let’s take this example:
I am an individual with a lot of money. Someone comes up to me and requests for a loan of $500,000 so they could buy a house. I will lend them that money and they will pay me back in regular instalments without any interest (they’ll pay $500,000 in total in x years). However, I want a partial ownership in their house (let’s say around 20%). If they rent the house to someone for $1000/month, they’ll pay me $200 on top of their regular instalment. Then let’s say they have paid the mortgage in full and plan to sell the house for $1,000,000, I’d want $200,000 from the sale.
Now is this 20% stake in the house considered as riba? Please lemme know.
I am an individual with a lot of money. Someone comes up to me and requests for a loan of $500,000 so they could buy a house. I will lend them that money and they will pay me back in regular instalments without any interest (they’ll pay $500,000 in total in x years). However, I want a partial ownership in their house (let’s say around 20%). If they rent the house to someone for $1000/month, they’ll pay me $200 on top of their regular instalment. Then let’s say they have paid the mortgage in full and plan to sell the house for $1,000,000, I’d want $200,000 from the sale.
Now is this 20% stake in the house considered as riba? Please lemme know.