Islamic financing model makes it so much easier to buy a house
Like many Kenyans, Mr Elias Mwangi’s ultimate dream was to own a home and say goodbye to landlords and their pesky agents. But after looking for an appropriate house with a comfortable payment period, his dream appeared unachievable.
“For one year, I had been shopping around for a house and after looking through most vendors’ websites, I found the payment terms out of reach. In fact, when you look at the real estate market, only a few middle class and the upper class individuals can afford it right now,” says Mr Mwangi.
As an example, he cites the case of a leading real estate company whose off-plan purchase payment terms are a 20 per cent deposit, then a similar deposit within the two years it takes to complete the construction, by which time the buyer should have paid the full amount for the house.