Can you really buy a house for £2?
Ever thought of winning a dream home for a little less than the price of a takeaway coffee? Winning a house in a raffle sounds like a dream come true. But is it too good to be true?
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With the average house price in the UK at around £283,000, for many, the dream of buying or even moving to somewhere bigger can feel out of reach. But, if you’re dreaming of more space for the kids’ toys, getting a house with change from a fiver might seem tempting.
How do house raffles work?
House prize draws or competitions (they’re not officially raffles, even though they call themselves raffles, as it’s illegal) are organised by property owners or companies looking to sell a house in an unconventional way. Instead of selling the property through an estate agent, they sell tickets for a chance to win the house (and make themselves as much money as possible). Once all tickets are sold or a set deadline is reached, a draw is held to pick the winner.
Is there always a winner?
In most cases, yes, there is always a winner. But is it always a house?
The “raffle” terms usually specify that if enough tickets are sold, the house will be awarded to a ticket holder. If not, the organisers might offer a cash prize instead, which can be a bit like getting socks for Christmas when you asked for a PlayStation.
One example is a £2 million house that (only) raised £227,000. The seller gave away a £53,500 cash prize instead. And another where a house was valued at £650,000, but the winner got a (tiny…!) £173,012.93 cash prize. Still a prize, but not quite the same, and it prompted complaints to the ASA.
Will it cost more than £2?
Winning a house for £2 sounds amazing, especially if you’re skint. But it’s not all sunshine and rainbows. Here are some potential costs you need to consider:
- Your current home: You’ll have the bills to pay where you live, plus the bills on your new gaff! Double whammy! This will last until you can give up your current home and move to the new place, or sell the win. But, if the prize house is being sold through a “raffle”, does that mean they’ve had trouble selling it in the typical way in the past?
- Maintenance and repairs: Houses can come with hidden issues that need fixing, from leaky roofs to broken boilers. You don’t want to win a house and then discover it needs more work than your toddler’s latest art project.
- Insurance: Home insurance is a must to protect your new asset, and it can be costly depending on the property’s location and condition.
- Running costs: Larger or older homes can have higher utility bills and maintenance costs. Imagine heating a mansion during a cold British winter!
- Stamp duty/legal fees: Depending on the value of the property, you might need to pay stamp duty, and fees to solicitors to transfer the ownership of the house, which can be a fair whack!
Should you take part?
Yeah, we’re never big on gambling and very rarely mention it, but these eye-catching giveaways are getting more popular.
Who wouldn’t want to trade a couple of quid for a chance to win a house?
But before you get too excited, do your homework. Check reviews and testimonials. These giveaways are not regulated, but still check the raffle is legally compliant and check the organisers’ reputation. While winning a house through a raffle is possible, it’s worthwhile knowing what might happen.
Naomi knows the burden of living on very little and became debt free by following her own money saving tips and tricks. She is an expert on saving money at the supermarket and side hustles.
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