Sharia Law at work.

[Eman]

Part of the expose on PIPS:

The other flavour, where individuals come to PIC Realty and basically say "This is the house we found and we want to live there", is not active yet, but will be very very soon.

Here PIC Realty will buy the house and lease it to you at 80% of the
market value. You have to come up with 10% down payment though, and that 10% is not provided by PIC Realty . You then can lease the house for 20 years and own it after that for $1. The best part is that PIC Realty will ensure a long term, ongoing flow of money coming into Pips.

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To Western eyes, these arrangements may look immensely strange; hence the warning by Talkgold. The Arabs and Moslems amongst us will recognise it immediately as something they have been doing successfully for yonks.

Receipt or payment of "interest" on capital is forbidden by the moslem religion; hence these arrangements.

To the initiated, there is nothing suspicious here. Consider where PIPSINC is HEADQUARTERED.

I am not a moslem.

eman.

[kpaddle]

Well eman you go for it! Jump in feet first and good luck to you.

[investor88]

Originally Posted by Eman

To Western eyes, these arrangements may look immensely strange ...

Receipt or payment of "interest" on capital is forbidden by the moslem religion;

In Malaysia you have the choice between banks operating the "Western" way and those working the "Islamic" way.

Now assume you need RM (MalaysianRinggit) 10,000.00 for two years.

The "Western" bank will tell you that the current interest rate is 6 % per annum. So if you make only one payment at the end, you have to pay the bank RM 10.000.00 plus RM 1,236.00 accrued interest. A total of RM 11,236.00 .

The "Islamic" bank will not charge you any interest which they call "riba" and which is "haram" (=forbidden). But they will ask you to pay back after two years the amount of RM 11,236.00 . The difference of RM 1,236.00 they consider as payment for their service.

So - where is the difference for the borrower?

Normally you do not care whether you pay "interest" or "bumbabumba" or "glumglum" - what you pay is RM or US$ or Yen or Euro.

In my opinion, religion should be left out of the world of finance - and in particular out of PIPS.
.

[Eman]

Originally Posted by investor88

In my opinion, religion should be left out of the world of finance - and in particular out of PIPS.
.

investor88,

I agree with you entirely but try telling that to the self righteous Imams.

eman

[Eman]

Originally Posted by kpaddle

Well eman you go for it! Jump in feet first and good luck to you.

kpaddle,

I would have were it not for the fact that my mortgage is entirely paid off, my two girls have achieved their varsity degrees and are now expesively employed and I drive about the city in Lexus comfort. Thanks to Pips, me being a pioneer of PIPS.

I got lucky? Perhaps, but please try not to denigrade things that you do not understand.

eman.

[maouse]

Originally Posted by Eman

Part of the expose on PIPS:

The other flavour, where individuals come to PIC Realty and basically say "This is the house we found and we want to live there", is not active yet, but will be very very soon.

Here PIC Realty will buy the house and lease it to you at 80% of the
market value. You have to come up with 10% down payment though, and that 10% is not provided by PIC Realty . You then can lease the house for 20 years and own it after that for $1. The best part is that PIC Realty will ensure a long term, ongoing flow of money coming into Pips.

--------------------------------------------------------------------------

To Western eyes, these arrangements may look immensely strange; hence the warning by Talkgold. The Arabs and Moslems amongst us will recognise it immediately as something they have been doing successfully for yonks.

Receipt or payment of "interest" on capital is forbidden by the moslem religion; hence these arrangements.

To the initiated, there is nothing suspicious here. Consider where PIPSINC is HEADQUARTERED.

I am not a moslem.

eman.

This doesn't sound weird to me (a US citizen). Most banks here try to get you to give them 5-20% downpayment. Then you pay "mortgage" for upteen years. The difference between a lease and a mortgage are slight IMHO. Except of course for who actually holds title. In a lease agreement, the leaser actually owns the property. In a mortgage agreement, the payer actually owns the mortgage (until/if it gets sold by the bank, which is "illegal" as heck but still happens all the time). In any event, the deal sounds just hunky dory. They are offering a 10% price reduction for a 10% deposit front-loaded. Essentially, they are frontloading their loans. No big whoop.

How this adds "continuing income" is beyond me, though. Since, in effect, they would only be getting paid a total of 90% of the property value. Even if they buy it for only 45% of cost, that is only 100% interest in 20 years. Not 300% in one year.

Must be the volume they expect to do...

-Marcel