Premium Essay

The Pros And Cons Of Housing

Submitted By
Words 986
Pages 4
Housing is for many households around the world constitute both the largest expense and probably the single-most important asset. For the majority in developed countries, and for some in emerging market economies, housing is adequate. However, in Malaysia, as in other third world countries, rapid urbanisation has increased the ranks of the urban poor and created a demand for housing and more importantly—its mean of financing. Ebrahim (2009) argues that the formal housing finance system is onerous to the underprivileged. For instance, although some financial institutions, i.e. commercial banks and finance companies, are also populating provision for mortgage financing, the facilities tend to be extended to middle- and upper-income households …show more content…
It is a particular form of cooperative financial institution (herein after CFI). Essentially, this not-for-profit CFI consist of a group of people who share some bond of association through their profession, social interest, political inclination, and religious affiliation, which pooled their capital together, usually on a regular basis. These savings, or commonly known as ‘shares’ are then used to provide financing to its members. Since their main purpose is to help other members (and themselves) in obtaining lower-than-market profit rate financing, they have to contend with lower-than-market profit rate return on their deposit. They primarily rely on voluntary effort to organise and administer the pooled fund. Although some of these credit unions have since hired professional managers, and received on lending, the core, self-help principles still soldier on. Some of the prime examples of Shari'ah-compliant mortgage finance provider in those region are American Finance House LARIBA, Guidance Residential, LLC (both in the U.S) and Ansar and Islamic Cooperative Housing Corporation Ltd. …show more content…
Why? Shari’ah-compliant mortgage financing represents an important risk profile for many CFI—restrictions on how to raise finance (Cornforth and Thomas, 1990; Peterson and Kidwell, 1983). By venturing into the mortgage finance market however, these CFI may be repeating some of the mistakes made by the savings and loan industry in the U.S by expanding their financing into areas where they have little or no expertise in assessing default risk (Tripp and Smith, 1993). Therefore, in honouring the self-help principles of a cooperative society by providing Shari'ah-compliant mortgage financing to their religiously conscious-members, they will encounter issues and challenges that will inhibit their Shari’ah-compliant mortgage finance intermediation capabilities. Therefore, how are these CFI are going to address

Similar Documents

Premium Essay

On Post Housing vs. Off Post Housing

...Jenei Lewis English 0310 10/21/11 On Post Housing vs. Off post Housing Being a part of the military comes with a lot of amenities and benefits. One of the most popular amenities offered to soldiers and their family members is housing. As a soldier, the army pays for your living arrangements. Soldiers are given a basic housing allowance; with that allowance, soldiers can either choose to live on post or off post. There are pros and cons to both ways of living. A few things to consider are bills, maintenance and your basic housing allowance and security. Many soldiers have their own preference to why it’s better to live on post or off post. Speaking as a member of a military family, I believe it’s better to live on post and be secure financially, but some people beg to differ. Living on post can be good for most soldiers and their families. The army gives soldiers a basic housing allowance. The normal rate for the basic housing allowance is $1000.00. If the decision is made to live on post, the army keeps that allowance and provides a nice home. One of the pros of moving on post is there are no utility bills. Some soldiers are not used to paying bills, and often pay bills late. So living on post is a great idea for soldiers and their families that are just starting out. Another amenity offered on post is the maintenance. If there is any maintenance issues or problems with the home you’re living in, the army will send someone to your home to fix it for free. Security...

Words: 608 - Pages: 3

Premium Essay

Early Civilization

...of this cultural makeup? As cultures developed at different paces their level of intelligence evolved as well. The separation would then lead to cultures that had different beliefs and values and the fact that they had different opinions could cause problems between the different cultures. What were the main cultural influences on early civilizations? The need for food, clothing and housing were some of the main cultural influences on early civilization. The housing, food and clothes that they had depended on geography and their access to natural resources. Depending on where they were located they would grow crops or they might hunt. The food they could hunt or grow depended on the climate. From your perspective what are the pros and cons of revisionist history? Explain your response Revisionist history is the term that describes taking historical facts and changing or interpreting them in a different way. There are pros and cons to this. The pros are that it might help us to understand things that happened a little bit better and we can use the new information to educate others. The cons to revisionist history are...

Words: 351 - Pages: 2

Free Essay

Mobikash

...available software. Is it in fact better for companies to use other software available on the market or to create the software themselves and create the code and house the servers. The answer in the end like many broad questions such as this is, it depends. It depends on the usage the company will give it and the company itself. In this case we have MobiKash, an African based company who most has the vision to give this service to many countries but doesn’t have the software and or capital investment needed to create such software. For them it would be more useful to use and outsource this software. As with many scenarios in real life it is always a good idea to do a Pros and Cons list or a SWOT analysis (Strengths, weaknesses, opportunities, and threats). For MobiKash there may be even the same quantity of pros and cons, but what it mostly comes down to is the opportunity cost and the comparative advantage of...

Words: 1390 - Pages: 6

Free Essay

Unicon Operation Strategy

...Executive Summary The Government of the Peoples Republic of China (PRC) in 1997 introduced a housing project with the intention of creating an opportunity for affordable housing in Hong Kong (HK). Hong Kong was recognized as having one of the most important ports in the country with a growing middle class. The project would cover a 90 block radius by 1998. Unicon, given an opportunity to complete this project for the PRC, faced a big challenge. The capacity of the project was 90 blocs. The company has only been able to complete a 7 block per year radius. The total capacity of the industry itself was 20 blocks per year. Demand for 2 of its 4 products - precast concrete facades & slabs, which are in current production, is in high demand for the Hong Kong market. These 2 products already represent close to 54% of the sales of Unicon. The fact that the total capacity of the industry is 20 blocks per year clearly indicates that competition will be entering the Hong Kong market. Unicon, in fact, already expects a minimum of 5 new competitors to enter the HK market for construction suppliers. There are currently already 4 competitors in the HK market. Unicon needs to move fast to be able to stay ahead of the competition entering the market. The opportunity for expansion is great. Based on our evaluation, we recommend that Mr. Li: • Work on the blanket approval with the HKHA to short cut the approval process; • Re-organize the company structure by moving from “make...

Words: 2193 - Pages: 9

Premium Essay

Zoning in Houston- Real Estate Principles

... In this short essay I will discuss the pros and cons of pubic real property zoning regulations as well as the effectiveness of this policy as it relates to Houston, Texas’s overall real estate market. I will then relay my thoughts as to whether this is a model that other municipalities should adopt or not. Before we dive into the pros of public real property zoning regulations, first lets answer the question, what is the purpose of zoning? The main purpose of zoning is to use the land or a property for the common good of society. Zoning is also used to maintain the unique characteristic of the society, to protect and conserve the value of buildings, and to prevent new development from meddling with the existing uses. So what are some pros of these zoning regulations? One of the more important benefits of zoning is that it can give a community some control over its land uses, appearance, and quality of life in the future. This may help with implementing community goals and objectives such as allowing potential nuisance uses to be located away from residential neighborhoods or other sensitive areas as well as preventing the mixing of incompatible land uses (such as erotic dance clubs and schools). Zoning can also protect and enhance property values, recreational spaces and open space as well as help conserve existing neighborhoods, structures, and environmentally sensitive areas. A few other pros of property zoning regulations are that...

Words: 915 - Pages: 4

Premium Essay

Research Paper On The Tiny House Project

...It is only human nature to strive to attain more material possessions. The Tiny House project invites individuals to stray from a lavish life to a more minimalistic life. These “tiny houses” are, essentially, houses stripped from expensive add-on features and left with bare essentials. The average American spends a third to a half of their income on housing. Over a 30 year period, the average American puts about one million dollars towards their housing. The Tiny House project is a positive departure away from expensive lifestyles many people may desire. There are many positives to living in a tiny house but, there are also negatives as well. Millions of Americans live a life of debt and uncertainty. The tiny house movement focuses on a lifestyle...

Words: 461 - Pages: 2

Premium Essay

A New House Decision

...life soldiers sought after was complete with a wife, three children, a dog, and a cookie cutter home in suburbia. As many American civilians watched television programs that painted this pretty picture, and seeing veterans achieve this life style, it wasn’t long before the country began to chase the fantasy of owing a home and living the America Dream. Limited knowledge about buying a home was available to the consumer, as this was a fresh new concept. Since this concept of the American Dream was introduced, every generation seeks to achieve it year after year. In the process much information and statistics have been obtained; and the risks and rewards have since changed. There are huge risks involved in buying a home, and multiple pros and cons that should be thought out before buying. One should strongly consider the 10 principles of economics such as “A Trade-Off”, “The Cost of Something Is What You Give Up to Get It”, and “Rational People Think at the Margin” to name a few. A buyer should compare the marginal benefits, and the marginal costs; and be aware of the strength of the economy. As I consider these factors I also look at other markets that may affect my decision, and compare different outcomes. Personally I do not chase the “American Fantasy” as I like to call it; I buy homes for financial gain. It does not matter the reason for buying, every buyer should follow my pattern or something similar. My buying pattern differs from the average buyer seeking a new home...

Words: 1948 - Pages: 8

Premium Essay

Writing an Arguement

...enormous commitment of time, personal sacrifice and financial investment and those who consider pursing it need to consider its value prior to pursing it. This brings me to discuss why I want to pursue my MBA degree. As the old saying goes, “A mind is a terrible thing to waste” and someone has at least heard this phrase told to them, “Knowledge is power” so therefore education is a lifelong process and you could never have too much knowledge. I will discuss my reasons for pursuing my MBA, share my personality traits and look at the pros and cons on obtain an MBA. My decision to pursue my MBA After obtaining my degree in Business Administration in April 2011, furthering my education immediately became an option in efforts to broaden my career opportunities. I am currently employed by the City of Tucson as a Housing Services Agent working with low-income families who are in need of housing under the Housing and Urban Development (HUD) public housing sector and have been with the city for 12 years. On occasion, I am second in command when my supervisor is not available so my decisions merit the same when choices have to be made in regards to tenant or staffing issues. The reason I needed to go back to school is to help with my personal growth, be apart of this competitive market, build up my confidence and further my career choices. I want to make more money and would...

Words: 1117 - Pages: 5

Premium Essay

Juvenile Death Penalty Case Study

...In New York and North Carolina the age you are legally allowed to be executed is sixteen years old (Pros and Cons Part Two). Two states allow children sixteen and up to be sentenced to this, all other states have a eighteen limit (Pros and Cons Part Two). It should be legal to have the death penalty for juveniles, because dangerous criminal juveniles deserve the same punishment as adults. Juveniles are equal to a grow adult when they break these severe laws. Dangerous criminal minors deserve the same punishment as anyone else. Countries that support these executions include the United States, Iran, Pakistan, Saudi Arabia, and Yemen(History of the Death Penalty, Linn). Ninety Seven children have been executed since the year 1900 (HIstory of the Death Penalty, Linn). These children are dangerous people and we cannot trust them again in a public setting. The counties that allow this penalty see them as criminals , there is no age limit for committing crimes. Another reason for juvenile death penalty would include how they would live the rest of their lives out....

Words: 537 - Pages: 3

Premium Essay

Buying vs. Renting

...Buying Versus Renting Ashley Mawhorter 1/11/2011 Axia College of University of Phoenix Every American has dreamed of owning their own dream home, whether they are young or old. Still many Americans choose to rent apartments. Why is this? There are many more pros when individuals decide to buy a home. That is why buying a home is a better option than renting an apartment. Jumping right into the first home one sees is also not the proper way to buy a home. Much time and research needs to be done and many things taken into consideration before deciding the best decision. Do I want to have a landlord, or be the landlord? How much can I afford if I choose to buy a home? Where do I want to be located and what style home am I looking for? Are there any pros and cons to buying verse renting? How much would property taxes be yearly? These are all important questions to take into consideration, and that will be covered in paragraphs to come. First and most important is figuring out how much each individual can afford. On ginniemae.gov there are two calculators that can help to determine individual financial status. The first calculator helps individuals to determine the advantages and considerations of owning verse renting a home (http://www.ginniemae.gov). Using the calculator I have come up with an example. If I were renting a home that cost 800 dollars a month and I wanted to buy a house I found for 100,000 I would simply calculate the percentage of down payment, length of...

Words: 1361 - Pages: 6

Free Essay

Management

.............................................................. 3  County Map for Scenario A ......................................................................................................... 4  Urban Map for Scenario B .......................................................................................................... 5  . County Map for Scenario B ......................................................................................................... 6  Urban Map for Scenario C  .......................................................................................................... 7  . County Map for Scenario C ......................................................................................................... 8  Pros and Cons Summary Table ................................................................................................. 11  2. Urban Form ............................................................................................................................... 21  Issues to Consider for Future .................................................................................................... 21  Review of Scenarios...

Words: 42946 - Pages: 172

Premium Essay

Owning vs. Renting

...OWNING -VS- RENTING Principles of Macroeconomics Professor John Weber October 17, 2013 Low mortgage rates and rising apartment rentals all over the country has led some people to dive into homeownership more quickly than originally planned. There are many that are still waiting for the housing market to recover, even with incentives to buy. All rely on the personal financial situation in making this decision. Renting vs. Owning both presents a number of pros and cons: Renting: Pros Cons Flexibilty and free Can’t build equity Terms of lease Restrictions No maintenance and upkeep Approval by owner to paint or remodel Ownership: Pros Cons Build Equity Pay for Maintenance Tax Breaks Illiquid Asset Stability of Mortgage Property Taxes Investment Lose of Value Location Use of your savings for down payment Remodeling as you please Owners insurance is Mandatory However purchasing property can be for many reasons, such as, an investment for flipping, to fix up and resale or to occupy. Maintenance of up keep, roof, windows, snow removal, and credit score is all things to consider for purchasing a home. When purchasing there are many different options row home, single, development all are investments. There are many financial parts that play into the option of purchasing and renting. When buying you must be very aware of purchase costs which are the down payment and closing costs. Yearly...

Words: 482 - Pages: 2

Premium Essay

Mergers and Acquisitions

...------------------------------------------------- Top of Form Bottom of Form |  RSS     |   | *  0 items - £0.00 * Economics Help * Blog * UK economy stats * * * * * * * * * * * * * * * * * A Level Blog * Shop * Ask question You are here: Home > Economics help blog > Pros and Cons of Mergers Pros and Cons of Mergers by Tejvan Pettinger on February 22, 2012 in economics A look at the pros and cons of mergers. Are mergers in the public interest or are mergers just beneficial for top executives and shareholders? When looking at mergers it is important to look at the subject on a case by case basis as each merger has a different possible benefits and costs. These are the most likely advantages and disadvantages of a merger. Pros 1. Network Economies. In some industries, firms need to provide a national network. This means there are very significant economies of scale. A national network may imply the most efficient number of firms in the industry is one. For example, when T-Mobile merged with Orange in the UK, they justified the merger on the grounds that: “The ambition is to combine both the Orange and T-Mobile networks, cut out duplication, and create a single super-network. For customers it will mean bigger network and better coverage, while reducing the number of stations and sites – which is good for cost...

Words: 1102 - Pages: 5

Premium Essay

Death Penalty

...IS THE DEATH PENALTY Is the death penalty the right form of punishment for crimes such as murder? 1 IS THE DEATH PENALTY Is the death penalty the right form of punishment for crimes such as murder? 2 During this paper you will hear supporting and opposing arguments for the death penalty when a murder charge is sought. You will hear information on the trial, the families, and the way it affects the jury. The death penalty has long been an ongoing debate. There are numerous reasons to be pro-death penalty, as well as, con-death penalty. When is the death penalty appropriate? What types of crimes should be considered for the death penalty? Throughout the course of this paper were going to look at the pros and cons of the death penalty when dealing with murder charges. We’ll discuss the money that goes into a trial and sentence of an inmate on death row, weather the death penalty actually gives the family a sense of justice, as well as, weather the death penalty is the right punishment for murder. We will also look at if the death penalty is the only answer for murder and weather the evidence and information given to the jury plays apart in the way they vote. The death penalty can mean many different things to many different people. Many people think that if you take a life you should have yours taken away. The question there, is it really effective? Taking the life of someone else isn’t going to bring the dead back, but allowing them to sit in jail gives them many...

Words: 1076 - Pages: 5

Premium Essay

Death Penalty

...Pros of the death penalty include: The drugs used in lethal injection are surprisingly very cheap, only $83 dollars. (“Death And Taxes: The Real Cost of The Death Penalty”, 2011) While the initial cost of capital punishment may be much higher, some studies have shown that the overall cost of housing an inmate for the entirety of their life totals 3 to 10 times more than it would to have executed them with our current system. (Sharp, 1997). Cons of the death penalty: High initial cost. Depending on the state, the costs of the trial and first few years can range anywhere from 48% to 70% more than if the inmate was sentenced to life without parole. (“Death And Taxes: The Real Cost of The Death Penalty”, 2011). The high cost of capitol punishment can have a negative effect on employment and actually end up releasing some other inmates early. California has actually released many inmates early, (after serving only 20% of their senetence), due to an inability to cover the costs. (“Death And Taxes: The Real Cost of The Death Penalty”, 2011). Wrongful Conviction Compensation statutes: ("Wrongful Conviction Compensation Statutes", 2012). “The compensation to people wrongly imprisoned varies widely by state, and in 24 states, there is no money awarded at all. California: $100 a day Florida (highest): up to $2 million. Texas has paid over $65 million to 89 people in wrongful conviction compensations. Tab for Wrongful Convictions in Texas. (2013)...

Words: 341 - Pages: 2