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However, realty is far too expensive for many people to buy outright utilizing cash: Islamic mortgages resolve this issue by having the home change hands twice. In one variation, the bank will purchase your house outright and after that serve as a landlord. The homebuyer, in addition to paying rent, will pay a contribution towards the purchase of the home.
This is since in some nations (such as the UK and India) there is a stamp duty which is a tax charged by the federal government on a change of ownership. Since ownership modifications twice in an Islamic home mortgage, a stamp tax may be charged two times. Lots of other jurisdictions have similar transaction taxes on modification of ownership which may be levied. https://www.ranker.com/writer/nuallahxy0 |
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