Would-be landlords are being wooed by an opportunity to win a 13-apartment portfolio in return for ... just a £10 ticket.
It's another property raffle, of course, but this time aimed at the buy to let sector. The lucky winner, should the raffle sell enough tickets, will also receive £30,000 in cash.
The main prize is a pair of buildings in Wakefield, West Yorkshire, consisting in total of 13 one and two bedroom units; they are already generating approximately £75,000 per year in rental income and are managed by agents according to the raffle promoter.
Publicity for the raffle says: “For a £10 ticket you will be in with a chance of winning over ONE MILLION pounds worth of debt-free property with an approximate rental income of £75,000 per year as well as a £30k lump sum.”
The properties are both freehold, and the raffle promoter will pay both stamp duty and conveyancing, plus a year’s building insurance.
Local media in Wakefield say the owner hosting the competition is Nigel Coxan, a former bricklayer, who plans to donate £50,000 to the Prostate Cancer UK charity.
He says: “This is a perfect opportunity for you to start your own property business that's already generating approximately £75,000 per year in rental income. Whether you keep the buildings or sell them and bank the money....the choice is yours.”
The world of property raffles is a complicated one, and many such competitions fall by the wayside either because rules are broken or too few tickets sell.
The Gambling Commission, which presides over such events, says there are two options for individuals or companies wishing to raffle a property.
Firstly an owner could run a raffle based purely on the luck-of-the-draw, providing he or she obtains a Gambling Commission licence. The commission says such events cannot be run for private gain and cannot offer a prize valued above £200,000 (both limiting the attractiveness of a raffle for many owners and sellers).
Secondly it is possible to hold a competition to dispose of a highly valuable prize such as a property but this needs to be convincingly “skills-based” rather than involve the random drawing of a ticket requiring nothing more than chance.
This latter point is why many raffles in recent years have been abandoned, with organisers believing they could simply publicise the property and sell tickets.
This buy to let raffle will not be drawn until well into next year; you can see details here.
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