Focal Interest
Focal Interest
AI Summary of Peer-Reviewed Research

This page presents an AI-generated summary of a published research paper. The original authors did not write or review this article. [See full disclosure ↓]

Publishing process signals: STANDARD — reflects the venue and review process. — venue and review process.

Rental yield may serve as a benchmark for home financing pricing

Business, Management and Accounting research
Photo by anncapictures on Pixabay · Pixabay License
Research area:Business, Management and AccountingAccountingFinancial Analysis and Corporate Governance

What the study found

The study found that rental yield may be used as a reference benchmark pricing for musyarakah mutanaqisah home financing, instead of relying on market interest rates.

Why the authors say this matters

The authors say Islamic financial products need a benchmark pricing that is free from interest-based borrowing and riba, and they conclude that Islamic financial institutions can consider using rental yield for pricing home financing products.

What the researchers tested

The researchers assessed the projection pricing of musyarakah mutanaqisah home financing. They used an Artificial Neural Network (ANN) model to forecast housing market rental yield over 20 years, then used the forecast data in a simulation to project pricing and compare it with bai bithaman ajil and conventional home financing.

What worked and what didn't

Based on the simulation exercise, there was a significant difference in total payment by the customer between the two products being compared. The abstract does not provide the detailed direction of the difference or describe other outcomes.

What to keep in mind

The abstract does not describe limitations beyond the use of forecast-based simulation. It also does not provide detailed numerical results in the summary available here.

Key points

  • The study suggests rental yield may be used as a benchmark for musyarakah mutanaqisah home financing.
  • An Artificial Neural Network (ANN) was used to forecast housing market rental yield for 20 years.
  • The forecast was fed into a simulation to project home financing pricing.
  • Projected pricing was compared with bai bithaman ajil and conventional home financing.
  • The simulation found a significant difference in total customer payment, but the abstract gives no numerical details.

Disclosure

Research title:
Rental yield may serve as a benchmark for home financing pricing
Authors:
Nur Harena Redzuan, Salina Kassim
Publication date:
2026-04-19
DOI:
10.14419/ijet.v7i3.35.29466
OpenAlex record:
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Image credit:
Photo by anncapictures on Pixabay · Pixabay License
AI provenance: This post was generated by OpenAI. The original authors did not write or review this post.

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