Islamic Housing Partnership Equity Trust (HPET-i): The Pull and Push

  ISLAMIC HOUSING PARTNERSHIP EQUITY TRUST (HPET-I): THE PULL AND PUSH FACTORS

Assoc. Prof Dr Zaemah Zainuddin

Assoc. Prof Dr Norhafiza Nordin

Prof Rosylin Yusof

UUM

ABSTRACT

The concept of Housing Partnership Equity Trust, which derived from United States Housing Market, has effectively provided home to middle-income and low-income people. Adopting to this concept, this research intended to explore an alternative home financing which can be used in financing houses at an affordable price. The main objective of this paper is to determine the pull and push factors in implementing Islamic housing partnership equity trust (HPET-i) as a home financing alternative in Malaysia.

Using the concept of waqf and Islamic REITs, this research proposes the framework for developing HPET-i based on the identified pull and push factors. Two case studies on waqf development in Penang and Selangor are used to provide better understanding on the use of waqf in real estate market. This research provides evidence that in developing HPET-i for affordable mortgage financing, policymakers need to consider the existing policies, trusts or regulations which can contribute to the success of implementing this new Islamic finance product into housing market. In conclusion, our analysis suggests that HPET-i has the potential to be developed into a more effective home financing product. Nevertheless, more in depth analysis needs to be carried out in order to ensure its suitablity and successfulness. 

Keywords: Islamic Housing Partnership Equity Trust (HPET-i), waqf, affordable home financing