We are not aware of Baytulmaal's concept being used elsewhere in Australia. The Baytulmaal concept is used overseas and recognised by respected scholars as a valid form of a Shariah-compliant finance and investment.
You can start investing at anytime; however, you need to read the PDS, TMD and FSG before investing your funds in our financial product. You can also email us at info@baytulmaal.com.au, meet us in person at our office, or call us. The homebuying will start once the fund has sufficient monies to acquire property.
Under the Murabaha contract, the seller discloses to a potential buyer the total cost of the property, including its acquisition cost and profit. Under Ba'i Mu'ajjal, the sale occurs now, and instalments due under the contract of sale are paid over an agreed period of time. The seller under Baí Mu'ajjal does not need to disclose the cost of the property, including its acquisition cost and profit.
Please refer to our PDS page 10 on "How does the Fund achieve compliance with Islamic finance and investment principles?" The first and main difference is that the source of investment monies is from investors and not from conventional banks or other interest-based financiers who charge interest. Secondly, the Fund acquires the property by entering into a purchase contract with a third party vendor. There is a real contract of sale, not a "spiritual contract" adopted by other funds stated to meet Islamic principles. Thirdly, repayment instalments are fixed for the life of the sale contract.
Distributions are generally made quarterly, subject to Fund performance and Responsible Entity's determiantion. At present, distributions are made in the form of additional unites in the Fund rather than cash payments. This means you will receive more units, not a cash transfer to your bank account. This may change in the future. Please refer to to the PDS Section 6.14.
Yes. Subject to the PDS and Baytulmaal Finances Limited (BFL) 's eligibility criteria, investors may include individuals, joint investors, companies, trusts and SMSFs. Overseas investors may be eligible subject to additional due diligence requirements under our AML/CTF obligations. Please contact us before applying.
Withdrawal requests are subject to Fund liquidity and the Responsible Entity (RE)'s discretion. A minimum holding period of 6 months applies. This Fund is illiquid. Withdrawal is not guaranteed and may be delayed or unavailbale depending on Fund liquidity. We strongly recommend reading PDS Section 5,6 and 7.
Individual/joint: $5,000 initial ($1,000 additional). Others: $30,000 initial ($10,000 additional). A lesser amount may be approved at the Responsible Entity's discretion where consistent with the Fund's PDS Section 5 and 6.
Yes. Existing SMSFs may apply, subject to the Fund's eligibility criteria. SMSF trustees should carefully consider their Superannuation Industry Supervision (SIS) Act compliance obligations including the sole purpose test and in-house asset rules before investing. We strongly recommend obtaining independent financial, legal and taxation advice.
Yes ,but only through a Self-Managed Super Fund (SMSF). You cannot invest your existing industry or retail superannuation directly. Establishing an SMSF is a significant decision and we strongly recommend obtaining independent financial, legal and taxation advice first.'
Fund pools investors' capital for Shariah-Compliant property and motor vehicle financing.As with any investment elsewhere, returns are notguaranteed and capital is at risk. Please refer to the PDS Section 6, 7 and 9.
Please refer to our PDS page 4, "Why the Baytulmaal Property Trust?" point 7. Return on investment varies according to the profit and loss of the Fund during the financial year and is targeted to be competitive with the Reserve Bank of Australian cash rate.
As homes become available for sale, we will place details of the house on our web site. Those investors that also have an interest in the home can apply to Baytulmaal. We will then conduct our selection process from our list of preferred buyers to assess their capacities to meet the instalments and other requirements under the Ba'i Mu'ajjal contract. The three shortlisted candidates will meet with us on a face-to-face basis before we select the successful homebuyer.
Once you have signed the Ba’i Mu’ajjal contract agreement, you become the owner of the house. You will be responsible for maintaining the property and paying all the property outgoings, such as water and council rates. The Fund only has a mortgage over the property title. The property is owned by you.
Please refer to page 13 point 6.1.3 on "Dealing with Default of Client in Ba’i Mu’ajjal Deferred Sale Arrangements." In an interest-based system, the seller would impose penalties (interest) on the buyer in the case of late payment. This is not permissible under Shariah law; however, it is permissible for the Fund to stipulate in the contract of Ba’i Mu’ajjal that if the buyer fails to make a payment, the total outstanding amount becomes due. The seller, being the Fund, is able to secure the payment obligation under the contract. The Fund takes a mortgage over the registered title, which gives the Fund the right to sell the property to recover all outstanding and unpaid amounts under the contract of Ba’i Mu’ajjal. Additionally, a guarantor is required for each house sale to secure payments in case of default.
Please refer to our PDS page 26 point 9.6 on "Development Risk." The Fund has currently no development risk and is not likely to participate in property development activities within the first 18 months to 24 months from the Fund's inception. Nevertheless, we will consider it when one has the ability to pay the instalments and other criteria imposed. All of this is also subject to the approval of the Responsible Entity including amendment in Fund documentation and risk profile. Our preference is for acquisition of the Fund of established homes.
Once we raise sufficient investor monies, we will then commence acquiring our first property(s). We will then market the house(s) on our website to prospective homebuyers.
As this is a shariah halal investment fund, the fund is expected to derive from the Muslim community. However, the selling and buying of a property under Ba’i Mu’ajjal contract can be utilised both by Muslims and non-Muslims.
Please refer to our PDS page 14 point 6.4 on "How the Funds works". Baytulmaal enters into a contract to acquire the property from the vendor of the house. The deposit and whole property price are paid from the fund cash held by the custodian. As Baytulmal pays the whole price of the house, it owns the house from the Shariah point of view and can sell the house to a homebuyer even if the title is not registered in the name of Baytulmaal. Baytulmaal will have the title registered in the name of the buyer (nominated by Baytulmaal) at the time of settlement.
The homebuyer will pay all the costs involved in the house price, which will be included in the buying contract. At the time of settlement, the stamp duty will be paid to the title's office. The settlement proceeds will be provided by the Fund and include the deposit(s) paid by the homebuyer. In summary, the house sale contract will cover all costs.
This is possible if Bayulmaal first purchases the house from you, then a new agreement is entered into by Baytulmaal and the homebuyer.
Yes, you can sell the house during the contract with Baytulmaal. However, you need to settle your outstanding instalment balances with Baytulmaal before we discharge the mortgage on the house.
Please refer to page 26 point 9.6 on "Development Risk." The Fund has currently no development risk and is not likely to participate in property development activities within the first 18 months to 24 months from the Fund's inception.
We will use a quantitative assessment method that scores (homebuyer assessment points) applicants based on their financial capability, level of Fund investment, and other criteria that we believe are fair, reasonable, and objective.
We reserve the right to perform a credit check if there are grounds in our opinion to conduct a third-party credit check. However, the focus is on establishing whether the prospective home buyer has the ability to meet the required instalments. under Ba'i Mu'ajjal contract.
Currently, we prioritise residential property located in South Australia. However, we may accept interstate properties. The Investment and Credit Committee will assess the Fund property purchase proposals and make the recommendation to the Directors of Baytulmaal to ratify and/or approve the recommendation. The Investment and Credit Committee is also responsible for assessing the purchaser of the property under the Ba’i Mu’ajjal contract sale.
Our team will do the proper inspections and conduct all related inspection/due diligence actions required before the house acquisition.
By law, we are required to ensure that all purchasers are able to meet the instalment under the contract Ba’i Mu’ajjal without hardship. Therefore, we need to assess income and other financial requirements before approving the sale of the property to any prospective homebuyer. Accordingly, it is likely that those with demonstrated income will meet our homebuyer approval process.
In selecting the homebuyer we have stringent requirements to select and approve the homebuyer. We prefer that our prospective homebuyers are also investors. Furthermore, they need to provide evidence that they have the ability /capacity to pay the instalment under the Ba’i Mu’ajjal contract. There will also be homebuyer assessment points applied by Baytulmaal when selecting the homebuyers. Other requirements are that both Baytulmaal and the homebuyer comply with the National Credit Code.The person who proposes the house will in general have priority to purchase the house.
It depends on a number of factors, such as total cost plus profit and term of contract. The contract term ranges typically between 5 and 25 years. All of these, including the periodical instalment that you need to pay, will be stated in the agreement between the home buyer and Baytulmaal.
Baytulmaal will deal with the executor of the deceased person's estate. The estate can continue paying the instalment or otherwise Baytulmaal will sell the property and make a distribution to the estate after taking account of the money that is still owed to Baytulmaal under the Ba’i Mu’ajjal contract.
It may be possible. However, Baytulmaal is not responsible for applying for any government grant. You should consult the relevant state government website for details on the First Home Owner Grant and apply it in your own accord.
Please refer to our PDS page 17 point 6.6 on Ba’i Mu’ajjal Contract Key Principle sub point 5 on Early finalisation contract. While there is no prohibition for early finalisation of the total instalment due, any intentions to make an early finalisation of the contract must be discussed with Baytulmaal. There is no automatic right of rebate under the Ba’i Mu’ajjal sale contract agreement.
Please refer to our PDS page 14 on "How the Fund works" points 5 and 6 part A. The homebuyer needs to meet a deposit of typically 10% of the total cost price plus profit as a minimum.
Baytulmaal is not an insurer and does not provide insurance cover for the property. The purchasers will need to make their own assessment as to insuring their own properties.
