Are saving certificates better than isb property? 3 million in hand

[mani1]

It's a misconception. It indeed loses its value. I have seen many people who bought property in 2007, now seeing serious decline in the value. It's all about proper timing.

I disagree. Real estate is a long term investment. 2005-07 was the peak of real estate market. Obviously anyone who bought property during that period is going to face loss today. Infact if you buy a plot today and sell it tomorrow you are going to face a loss. As I said, real estate is a long term investment and should be treated as such. Investment horizon when it comes to real estate should be minimum 10 years.

It will increase obviously sometime but it may take a lot of time and time is money. Anyone remember how much property values increased in the whole decade from 1990 to 2000? Very little. People who bought properties in 1990 had to endure 10 years before the values sky rocketed.

Let me share an interesting fact with you. On average, value of a property increases 10 times (1000%) in 10 years. If you don't believe me, you can ask around for prices in 1975,85,95 and 2005

Here I am not talking about all properties but most properties which are carefully selected. I am not going to share the parameters of a valid case. In lahore's case you can search for property prices of johar town, garden town, mall road, main boulevard gulberg

[VCheng]

An important thing to keep in mind: The VALUE of any investment, property or not, is very different than its PRICE. These terms are NOT interchangeable.

[abdullah922]

Interest rate(saud) is always bad so your idea is not very right religiously.
Buying dollars and wait for them to increase in value is like gambling plus dollar is likely to fall to 90 if oil import bill keeps going down.
Stock market is better idea as you can pay zakat on time using dividends. Buy shares of strong companies which are cheap now.No regular trading is gambling just hold shares for few years then sell when you need to sell.
Real estate building house and putting it on rent is also good idea.Buying land and then holding it is not very bright idea these days because the residential plot are over supply so i personally think prices of real estate will go down because we have property bubble.Plus, we know all the people behind curtains who are playing the market creating a "demand".
Farming and food related business require expert help.This sounds like best but require personal involvement.

[autophile]

The investment in Saving Certificates and returns are not haram or "sood" because the govt uses that money to run the country and various projects and the money gets circulated into the economy, creates jobs and makes lives better.

Similarly investments in the banks and profits earned are not haram, because banks do business with the money, which creates jobs and the money is also circulated into economy.

The sood is haram when individual lenders lend to individuals and survive on the interest only. Though in that case a businessman might borrow money, do business with it, make profit and repay the loan with interest. That interest which the lender taking is haram.

But if both the parties agree that the lender becomes sleeping partner the returns on the investments are shared according to agreed formula then it is halal.

In Pakistan nobody is forced to take profit, if he she thinks its against his her beliefs. You cannot and should not judge others and issue fatwas here as you are not a mufti or aalim.

[Haider53]

Invest in Property.

[IsbCap]

Nice... digging a 5 year old thread. The poster wanted advice for 5 years investment, and by now, he'll either be millionaire or a big loser...

[pistonhead]

Lets wait to hear from the poster. I want to know where his 3 million stands now.

[abdullah922]

@auotphile i still think banks are interest(saud) because of various involvement with international lenders(how much Pakistan has to pay to international lenders?SC go into debt servicing).Let me give you an example Fauji fertilizers has 90% income generated from Halal sources and 10% from interest based so Fauji fertilizer is usually considered to be halal.Many in FF have been trying their best to ensure their company investment do not involve banks. Similar applies to many other shares.Not that i am expert in religion but i don't support interest based investment because interest rate based system cause poverty and problem for mankind in general.

[pistonhead]

I would not agre with the Fauji Fertilizer example, as no business can survive without dealing with banks or loans. Just a look at their financial statement for 2012 reveals long terms loans in excess of Rs. 3870 million and short term in excess of Rs. 4990 million which mean they are paying interest on around Rs. 900 million (900 crore).

[abdullah922]

That is what i heard from someone that FF tries to avoid loans but then again in these troubled times it is almost impossible to live in interest free times.

[syedfaizan1]

Making live this Thread again after 10 years I have same question right now and what you guys suggest as per current standing of this Country

@Capsat bhai please suggest. Thanks

[capsat]

my concept of ROI is different. any type of interest is haram in my school of faith.

i keep credit cards only as back up and into passport wallet. if & when used during travel or in any local emergency, bill is cleared immediately upon reaching home without waiting for a payment alert.

if any item is in my possession for a period of time applicable for ZAKAT calculation. I calculate it over its present day value not upon value it is purchased zakat payment is 1st priority.

profit upon sale at any given time is 100% legitimate because i blocked my resources. Be it property gold or foreign currency. In my school of faith possession of an item is important for any item am investing spare change. Spare change is invested to freeze the depreciation of its buying power. profit return of which is variable not fixed.

am not sure about such certificates bond or lottery tickets, am sorry.

[hassan918]

Property can give you greater rewards but there is a chance that you may end up with some loss as well. With saving certificates you are safe to get the promised amount after a specific time.

[despacitod362]

This post was flagged by the community and is temporarily hidden.

[drabdulrahman]

Can some one guide me about good investment opportunities in Islamabad with handsome monthly return. Got 9 million in hand

[anon35615524]

Why not start some type of business, trade, etc.? i.e. "Tijarat"?

Trust me, there is lots of "Barkat" in "Tijarat", provided income and investment both are halala, and Tijarat is done in right ways.

[drabdulrahman]

Business is full time job which is not possible for people like me with 9 to 5 job routine

[anon35615524]

Then Dr. Sb. what about partnership with any of your trustworthy friend, relative, colleague, etc. who runs business?

[salmanshah1]

Partnership and business are risky things. I think we have no option other than national savings certificates for a secured investment.

[drabdulrahman]

We cannot trust anyone in such matters other than family members. National savings is good but i was looking for any other suitable opportunities