You are here: Home - Mortgages - First Time Buyer - News -

Buyers warned property raffle ‘gimmicks’ are not worth it

0
Written by: Marc Shoffman
01/07/2019
Home buyers are being warned that property raffles are not worth the punt after another competition ended in acrimony.

Several property raffle websites have popped up in recent months, offering buyers the chance to get their hands on their own home simply by entering a prize draw after purchasing a ticket and answering a competition question.

However, many raffles have failed to raise the minimum amount so have either not given away the property or provide a cash prize instead.

Some have also been criticised by the Gambling Commission for flouting rules on competitions or have breached Advertising Standard Agency guidelines.

“Was there ever a more obvious gimmick than the property raffle?” Jonathan Harris, director of mortgage broker Anderson Harris, said.

“Which sane seller would raffle their home, rather than use the more traditional estate agency route to achieve the best price.

“From the buyer’s point of view, if gambling is your thing and you don’t mind losing the cost of the price of the ticket, then why not have a go?

“You might think it is worth a punt. But I would be extremely surprised if anyone actually ended up winning a property by these means. It seems that these property raffles simply don’t work, don’t raise enough money to satisfy the ‘seller’ and ultimately don’t end up paying out.”

The latest failed raffle, run on Cadivus, offered the chance to win a £2m flat in South Kensington, west London, close to the Victoria and Albert Museum for the cost of a £10 ticket.

However, it only raised £227,000 after seven months, 11 per cent below its target and instead has awarded a £53,500 cash prize, The Times reported.

Out of the remaining amount, £120,000 will be used by the seller to cover the costs for VAT, marketing and legal bills and they will keep the rest.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Government reminds tax credits customers to renew claims

HM Revenue and Customs is reminding customers to renew their tax credits by 31 July – or their payments will...

Close