To open a sharia property business, you should know what it is first, its benefits, and its weaknesses. This business is different from the property business in general. The related stakeholders who run this business are also distinct, even though there are similarities in some parties, such as subcontractors.
The use of sharia principles makes this property business unique. Everything is different, from the financing agreement to the property ownership rights. Therefore, you need to learn it deeply to make potential customers trust your new business. Learn the ins and outs of the sharia housing business in this article!
An Overview of a Sharia Property Business
Sharia property business is a housing business with sharia principles that prioritize transparency and avoid usury. This business does not apply confiscation, fines, or penalties. This different concept from the conventional one makes the sharia property business much in demand by the public.
Starting a sharia property business is quite easy. Yet, you must learn several things first to be able to gain the trust of potential customers. Here is a complete explanation.
The Difference between Sharia and Conventional Property Business
As explained above, the sharia property business is different from the conventional one and you must understand the technical mechanisms in the purchase agreement. Both parties must agree on the handover schedule, construction period, house specifications, and other things. Learn the complete differences below.
1. Using Sharia Principles
Sharia principles in the property business are used in every step. This business avoids interest, gharar (uncertainty), and maysir (speculation). Therefore, transactions must be carried out as clearly as possible without interest, hidden costs, or relying on market speculation.
2. Financing Contracts
The sharia housing business ensures that both parties benefit equally in the business. This business encourages justice and benefits and avoids losses. For this reason, this business applies several contracts, namely:
- Murabahah: Buying and selling with an agreed amount of profit.
- Musyarakah: An investment cooperation to build a business.
- Istishna': Making house specifications exactly according to customer orders.
3. Cost Transparency
Cost transparency is important in the sharia property business. All cost details must be shown to customers as clearly as possible without any additional or hidden costs. These details already include profit margins, basic prices, notary fees, and other administrative fees.
In sharia transactions, there should be no additional costs that have just emerged and are not clear about their use. Moreover, all payment agreements must also be approved by both parties. If the buyer chooses an installment scheme, the transaction process must also explain in detail how much and when the installments must be paid.
4. Asset Ownership Rights
As mentioned above, all sharia transactions must be clear, including asset ownership rights. The property whose purchase has been agreed upon must include a clear certificate of ownership recognized by the government to ensure that the transaction is free from all kinds of ambiguity.
How to Start a Sharia Property Business
Sharia property business offers benefits following Islamic teachings. Finding a way to do sharia property business without capital may sound impossible, but with the support of the right investors, it is possible. Here are the steps you can learn.
1. Learn Sharia Principles in Property Buying and Selling
Sharia business intends to seek blessings according to Islamic teachings, not to seek profit. As explained above, this business avoids interest, uncertainty, and speculation. Therefore, you must study the murabahah, musyarakah, and istishna' contracts in depth.
2. Conduct Market Research
Market research is conducted to determine market needs, the economic conditions of the target market, and the right location. This is important because each prospective customer has unique needs, whether it's housing, business spaces, or other requirements. Research on economic conditions is also useful for determining public interest in the price of the assets offered.
3. Determine the Business Model
There are several sharia property business models available. You can try becoming a sharia property agent if you decide to do business with little or no capital. Your job is only to market other people's properties. You can also try the musyarakah or investment cooperation and the rental cooperation.
4. Learn the Related Permits
The legality of property ownership is indeed important. However, this is even more important in the sharia property business which avoids ambiguity. Thus, you must learn the legal aspects and PBG (Persetujuan Bangun Gedung/Building Construction Approval). If you find it difficult, try to consult a legal expert or sharia business consultant.
5. Find a Business Partner for Collaboration
Finding a business partner who understands sharia principles can ensure that your property business is indeed carried out according to Islamic teachings. If you start this business with little capital, an investment partner becomes even more important. Regarding this, you can make an agreement using sharia contracts with a clear profit-sharing scheme.
The business cooperation that you will do with your partner must also be based on sharia principles. You must avoid usury in applying for loans, make business details as clear as possible, and prioritize transparency and honesty so that neither party experiences losses.
6. Do Marketing with Sharia Principles
Don't forget the marketing aspect of doing business. You can create a website, social media pages, and other marketing strategies to market your business. Also, you must explain the sharia principles that are the focus of your business in every marketing strategy you do.
That's how to start a sharia property business and its various advantages. You can start by understanding the sharia principles first. This basic understanding is very important so that you can carry out all these business activities under sharia principles.
To support your future property needs, you and potential buyers need to use the best cement. For this reason, Semen Merah Putih provides various high-quality cement variants, one of which is Semen Merah Putih Watershield.
Semen Merah Putih Watershield has water repellent technology that makes buildings more waterproof both from the inside, outside, and from the ground. This technology works like a taro leaf that prevents water from seeping in.
Semen Merah Putih Watershield is a super premium multi-purpose cement for various needs of your property building. This cement is suitable for all construction needs such as concrete roofs, castings, brickwork, plastering, and plastering.
Make your sharia property building sturdy and more protected from all weather obstacles with Semen Merah Putih Watershield! Contact us for more information.
