Can you actually purchase a home for £2?

Ever considered profitable a dream house for rather less than the value of a takeaway espresso? Profitable a home in a raffle seems like a dream come true. However is it too good to be true?

With the common home value within the UK at round £283,000, for a lot of, the dream of shopping for and even transferring to someplace larger can really feel out of attain. However, for those who’re dreaming of extra space for the children’ toys, getting a home with change from a fiver might sound tempting.

How do home raffles work?

Home prize attracts or competitions (they’re not formally raffles, despite the fact that they name themselves raffles, because it’s unlawful) are organised by property house owners or firms trying to promote a home in an unconventional manner. As an alternative of promoting the property by an property agent, they promote tickets for an opportunity to win the home (and make themselves as a lot cash as doable). As soon as all tickets are offered or a set deadline is reached, a draw is held to choose the winner.

Is there all the time a winner?

Typically, sure, there’s all the time a winner. However is it all the time a home?

The “raffle” phrases normally specify that if sufficient tickets are offered, the home can be awarded to a ticket holder. If not, the organisers would possibly supply a money prize as a substitute, which is usually a bit like getting socks for Christmas while you requested for a PlayStation.

One instance is a £2 million home that (solely) raised £227,000. The vendor gave away a £53,500 money prize as a substitute. And one other the place a home was valued at £650,000, however the winner received a (tiny…!) £173,012.93 money prize. Nonetheless a prize, however not fairly the identical, and it prompted complaints to the ASA.

Will it price greater than £2?

Profitable a home for £2 sounds superb, particularly for those who’re skint. However it’s not all sunshine and rainbows. Listed below are some potential prices you must contemplate:

• Your present house: You’ll have the payments to pay the place you reside, plus the payments in your new gaff! Double whammy! This can final till you can provide up your present house and transfer to the brand new place, or promote the win. However, if the prize home is being offered by a “raffle”, does that imply they’ve had hassle promoting it within the typical manner prior to now?
• Upkeep and repairs: Homes can include hidden points that want fixing, from leaky roofs to damaged boilers. You don’t wish to win a home after which uncover it wants extra work than your toddler’s newest artwork undertaking.
• Insurance coverage: House insurance coverage is a should to guard your new asset, and it may be expensive relying on the property’s location and situation.
• Working prices: Bigger or older houses can have increased utility payments and upkeep prices. Think about heating a mansion throughout a chilly British winter!
• Stamp obligation/authorized charges: Relying on the worth of the property, you would possibly have to pay stamp obligation, and charges to solicitors to switch the possession of the home, which is usually a truthful whack!

Must you participate?

Yeah, we’re by no means huge on playing and really hardly ever point out it, however these eye-catching giveaways are getting extra common.

Who wouldn’t wish to commerce a few quid for an opportunity to win a home?

However earlier than you get too excited, do your homework. Test critiques and testimonials. These giveaways are usually not regulated, however nonetheless test the raffle is legally compliant and test the organisers’ status. Whereas profitable a home by a raffle is feasible, it’s worthwhile realizing what would possibly occur.

Naomi is aware of the burden of dwelling on little or no and have become debt free by following her personal cash saving ideas and methods. She is an professional on saving cash on the grocery store and facet hustles.

Newest posts by Naomi Willis (see all)