I bought a small house which would be the principal residence for my family but the intention was to save some more money and later on down the road when I have more fund’s available I will sell this house and buy a bigger house which will serve as a principal residence for my family. My question is do I have to give Zakat on this property which I am utilizing for personal use?
Bismillahi Ta’ala
Walaikum Assalam Warahmatullah
In principle, the intent at the time of purchase determines whether the property is for living purposes or for resale (stock in trade).
In the situation you have mentioned the primary intent is to stay in the house, while a secondary intent, if it pans out, is to sell it at later stage to acquire a bigger house. Hence, this residence property is not a stock-in-trade and you do not have to include it in you zakatable assets.
This is contrary from a hypothetical situation where you buy the house with intent to resell, and while it remains on the market (for re-sale) you stay in it temporarily. In that instance it will be considered stock-in-trade and included within the zakatable assets.
Wallahu A’lam
And Allah Ta’āla Knows Best
Mufti Faisal al-Mahmudi