Abstract
House is the most important basic need for the human survival, however many individuals especially those who are categorised in the category of generation Y still do not acquire a house due to various factors. It is quite a normal practice for most of home-buyers in Malaysia to purchase a house through banking institutions. However, as a Muslim, it is an obligation to purchase and acquire a house through Islamic financial institutions (IFIs) as it is accordance to the Shariah principle. The objective of the study is to qualitatively identify factors affecting the behavior of Muslims generation Y in Malaysia towards Islamic home financing products. Apparently, it is found that religious belief, profit rate, offer and promotion, and fast service (loan approval) are factors in affecting Muslims generation Y in choosing Islamic home financing products. Afterwards, the study proposed to integrate the findings (identified factors) with the theory of Attitude-Behavior-Context (ABC). The study findings are expected to contribute significantly to the theory, methodology, and empirical practices.
Highlights
House ownership is extremely important to all individuals as it a basic need
Religious Belief The first factor generated from the interview was religious belief where all respondents mentioned that religion is one of the main factors of why Islamic home financing products should be considered
This statement shows that being Shariah compliance alone is not enough to attract Muslim homebuyers to buy a house through Islamic home financing products, while the religious belief might be there, other external factors offer and promotion should be included to gain interest from Muslim homebuyers
Summary
House ownership is extremely important to all individuals as it a basic need. House ownership has been considered as one of the critical elements of high living standards as home ownership provides security, stability, safety, independence as well as privacy (Mohd Thas Thaker & Sakaran, 2016). The same report indicated that the overall house price in Malaysia has marginally increased by 0.4% from RM426,417 in 2019 to RM427,882 in 2020. Due to the high price of residential property, it has become a normal practice for most of home buyers in Malaysia to purchase a house through banking institutions. While general home buyers have the option to acquire a house through conventional or Islamic banking institutions, Muslims home buyers are obliged to acquire a house through Islamic home financing products from Islamic banking institutions (IFIs). This is in line with the command of Allah; The Journal of Muamalat and Islamic Finance Research
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