Islamic (non-Riba) financing, using the Musharaka concept.

Currently, rental rates in Montreal are such, that the yield to an investor is about 7% to 8% after payment of real estate taxes and insurance. This yield is inferior to that in Vancouver or Toronto, but superior to that in Quebec City or Edmonton. Assuming, prevailing rental rates, in Montreal, yield 7.5%, the following examples can be developed.

Example 1 : House value = $100,000, member's investment = $20,000 or 20% and coop's investment = $80,000.


$100,000 House
Per Year Per Month
Estimated net rental value (7.5% x $100,000) $7,500 $625
Rent payable to coop (80% of above) $6,000 $500
Reimbursement of capital (3% x $80,000) $2,400 $200
Expected Payment by Member N/A $700
Estimated insurance and taxes $2,400 $200*

Example 2 : House value = $140,000, member’s investment $40,000 or 28.6% and coop’s investment = $100,000 or 71.4%.

$140,000 House
Per Year Per Month
Estimated net rental value (7.5% x $140,000) $10,500 $875
Rent payable to coop (71.4% of above) $7,497 $625
Reimbursement of capital (3% x $100,000) $3,000 $250
Expected Payment by Member N/A $875
Estimated insurance and taxes $3,000 $250*

Example 3 : House value = $180,000, member’s investment = $60,000 or 33.3% and coop’s investment = $120,000 or 66.7%

$180,000 House
Per Year Per Month
Estimated net rental value (7.5% x $180,000) $13,500 $1,125
Rent payable to coop (66.7% of above) $9,000 $750
Reimbursement of capital (3% x $120,000) $3,600 300
Expected Payment by Member N/A $1,050
Estimated insurance and taxes $3,600 $300*

*Member occupants have a choice to pay total amount by themselves or Qurtuba can pay total amount on their behalf and they can make monthly payments to Qurtuba. An estimated calculation of monthly payments is shown below.