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  • Diminishing Musharakah

Diminishing Musharakah

< 1 min read

Diminishing Musharakah is a sharia compliant Islamic finance structure commonly used in Australia, for SMSF property purchases. It is based on a partnership between the financier and the buyer. Both parties jointly acquire the property, and over time, the buyer gradually purchases the financier’s share through agreed monthly payments. As the buyer's equity increases, the financier’s share diminishes, ultimately leading to full ownership by the buyer. 

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