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Started by darkhorse on Jun 26, 2017 9:39:22 PM
Buy a raffle ticket to win a house in London
darkhorse - 27 Jun 2017 07:44:35 (#1 of 28)

A quick bump for breakfast...

Also, the "house" on offer only appears to be two floors of the building shown.

dreams99 - 27 Jun 2017 07:58:41 (#2 of 28)

Not a scam as such, but poorly thought through. It's happened before.

Not sure about the legality of distributing all the money to the winning ticket if the house price value isn't met, that's just a lottery rather than a raffle and would surely have to be regulated.

Also - stamp duty and income tax. What's the value of the house, if the winner has only paid £5 for it, but the seller has received £1.3m? £5, I presume, the rest being income, which would presumably need to be taxed at 45%. So she'd need to pay £600k in tax and only receive £700k for a house valued at £1.3m. She could auction it for more.

Moschops - 27 Jun 2017 08:02:32 (#3 of 28)

I think to avoid being classed as a lottery there has to be a free way to enter (like those phone in comps on the telly) as well.

darkhorse - 27 Jun 2017 08:25:31 (#4 of 28)

it does seem a bit odd she can't just sell it, it's in a popular area.

Perhaps she thinks she can get more via the raffle.

dreams99 - 27 Jun 2017 08:25:49 (#5 of 28)

Probably a PR scam.

Ginmonkey - 27 Jun 2017 08:28:20 (#6 of 28)

Probably means it is an unmortgagable wreck that will end up bankrupting you if you take it on.

dreams99 - 27 Jun 2017 08:29:18 (#7 of 28)

You'd be able to get a survey before you exchange.

Moschops - 27 Jun 2017 08:32:58 (#8 of 28)

It would have to be in a pretty shocking state not to be worth £5.

Ginmonkey - 27 Jun 2017 08:38:53 (#9 of 28)

Ahh reading the article I wonder if she is trying to get round RTB rules. Don't you have to pay back the discount in full if you sell within five years of buying a property under RTB? Looks like she has only owned it for three years.

darkhorse - 27 Jun 2017 08:46:20 (#10 of 28)

But she's still selling it surely.

"I didn't sell it - i raffled it!"

If it was a RTB workaround, then perhaps a single person raffle, with one ticket costing £1.3m would be enough. "I didn't sell a house. I sold a ticket!"

Ginmonkey - 27 Jun 2017 08:51:34 (#11 of 28)

Surely she is selling tickets and giving away a house? Like the old alcohol license work round of buying a raffle ticket that entitled you to a free drink.

dreams99 - 27 Jun 2017 09:06:26 (#12 of 28)

So she'd have to pay tax on the sale of the tickets.

Ginmonkey - 27 Jun 2017 09:09:14 (#13 of 28)

Yes as a cunning plan it seems riddled with holes.

thePiMan - 27 Jun 2017 09:13:40 (#14 of 28)

a bit like the house, probably.

OneOfOne - 27 Jun 2017 09:23:10 (#15 of 28)

they tried a similar thing on the isle of wight, we bought a 25 quid ticket

I think it got shut down and iirc we got a refund

Avonlea - 01 Jul 2017 18:49:43 (#16 of 28)

In a former life, I advised on the first of these (and many others). They have to be very carefully structured to avoid being an illegal lottery - most are unlawful - and I don't think I ever heard of any which actually sold enough tickets to proceed.

grenadiglia - 01 Jul 2017 19:31:32 (#17 of 28)

I vaguely remember that at least one actually succeeded in the US, but the winner then grumbled at having to pay tax on his winnings because lottery winnings are taxable over there. I assume his "winnings" were the assessed value of the house.

quattrobhoy - 18 Aug 2017 23:34:39 (#18 of 28)

having to pay tax on his winnings

The bell ringing for a big slots payout in Vegas is normally the call to action for the IRS staff to greet the winner and ask for 25% of his, or her, winnings.

quattrobhoy - 18 Aug 2017 23:39:00 (#19 of 28)

Getting back to the subject matter...


Resulted in

So he must have done something right

And here's another one

Does anyone foresee the demise of estate agents, real and online?

thePiMan - 19 Aug 2017 09:48:19 (#20 of 28)

The bell ringing for a big slots payout in Vegas is normally the call to action for the IRS staff to greet the winner and ask for 25% of his, or her, winnings.

That's if the casino don't just claim it's a mistake and deny you any prize at all which happens a fair bit with major jackpot winners.

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