The buyer obtains the required financing sum from the investors in advance, who in return receive shares in his property. Until the entire debt is paid off, the buyer pays a monthly installment or annuity, thus buying back the investors' shares piece by piece. The buyer's monthly installment consists of two components, the rental share and the investment share. The amount of the rent share is based on the one hand on the rent that is usual in the locality and on the other hand it depends on the investor's shares in his property. In total, the annuity remains the same every month. With each payment that the buyer makes, investors get back a portion of their investment. As a result, the next month the rent share in his installment decreases and the repayment of the investment share increases. This process will end once the client has acquired 100% of the shares in the property from the investors.
The Musharaka partnership Plan
The installments are paid monthly. The following table shows the monthly payments for the first year and the total monthly payments for the following years.
#repayment, #return, #FAQ buyer: How much do I have to pay back?
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