[Avodah] haaramah

[Richard Wolpoe]

On Wed, May 21, 2008 at 12:31 PM, Zev Sero <zev at sero.name> wrote:

> Richard Wolpoe wrote:
>
> It doesn't answer the question, because the investor's repayment and
> dividend is supposed to come out of the profits the business produces.
> A residential house doesn't produce any profits until it's sold (and
> it may not do so then either).  Unless you decide that the house belongs
> to the "iska", and the "borrower" is actually buying it from the "iska"
> in instalments, and paying rent in the meantime.  That could work with
> a house, and I suppose it might work with shares too, since I believe
> there's a short-term rental market for shares, but then why make it an
> "iska", why not just buy it in the "lender's" name, and do the
> instalments and rent directly?
>
> And what will you do with a car?  A private car is certainly not a
> profit-making business!  And a chasunah doesn't even leave something
> that can be sold!  The only way I can see an actual "heter iska" in the
> original sense working is if we all agree to pretend there's a business
> going on, and the one who claims the emperor is naked has an impossible
> burden of proof, even though everyone knows he's right.  I'm pretty sure
> that level of sham can't be sustained halachically.  Whereas the KSA's
> scheme with the cheques doesn't depend on any business, and can be used
> for any purpose.  Ditto for the SA Harav's scheme with the building,
> except that you have to actually have a building (or buy one for this
> purpose).
>
>
> --
> Zev Sero
>

First: I have a lot of family in the real estate business. I don't know a
lot about he technicalities of heter iska,

My original post was to make a distinction - hilluk -between real estate and
auto loans etc. Ein Hachi name, I do not see a car loan as an "iska" at all
- unless one invests in antique cars, etc.

But even when one lives in a house, the investment aspect is a big part of
the heshbon in getting a mortgage fro most people. And Many people "trade"
houses quite frequently
B"H I have been in the same house for almost 18 years. But I have refied my
original mortgage about 7-8 times already AND I have taken out TWO distinct
Helocs.  The business aspect of home-ownership is very much in the
foreground of my mind. Not to mention the taz write-offs etc.


-- 
Kol Tuv / Best Regards,
RabbiRichWolpoe at Gmail.com
see: http://nishmablog.blogspot.com/
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