Prop Linq is a Property Portal specifically dedicated to showcasing the latest House Competitions. With the rising popularity in the House Raffle arena we created this platform to keep you up to date with the most exciting property draws.
Why are People Raffling Their Homes?
A house raffle occurs when an owner is usually struggling to sell a property so turns to a different and, until now, a relatively unconventional method which involves literally putting their house up to be a prize in a competition.
Entrants pay for a raffle ticket then they answer a question, and a lucky ticket holder, who gets the question correct, then wins the house when their ticket is pulled out of a draw.
What Does the Homeowner Gain from This?
Well, the sheer amount of popularity house raffles have garnered means that, more often than not, these stories get a lot of interest and in some cases go viral. Therefore, in the majority of cases, homeowners can rest assured that they’ll earn the value of the property, which until now has been so difficult to shift, in ticket sales.
Has anyone Won a House Raffle Recently?
One example of an successful property raffle occurred in May 2020. Raffle House was thrilled to announce that Niomi Boontam, aged 27 from Bournemouth, was the winner of their latest competition and collected the keys to a £500,000 two-bed London apartment in Whitechapel, and £30,000 in what was a life-changing win for the insurance consultant.
What are the Tax Implications if you Win?
Property winners can dodge stamp duty fees as these are typically covered by the person or Agency running the competition. HMRC state that, for raffled homes, Capital Gains Tax is based on the open market value on the date of attaining the property. This means if the winner was to sell their new home shortly after acquiring it there would likely be zero Capital Gains Tax to pay.
Can I Raffle My House Legally?
Property raffles are by no means mainstream in the UK. They are very much considered an outside of the box venture, typically used on properties that are expensive or quirky that could struggle to sell otherwise.
Raffling your home is not illegal, but it does have drawbacks. For example, if you have a home valued at £200,000. To secure the £200,000 you desire you would have to sell 100,000 £2 raffle tickets – selling 100,000 is not typically easy but it has been done successfully.
Who Regulates the House Raffle Industry?
The Gambling Commission.